Daily Market Commentary

Nepse down marginally

Published On: June 27, 2019 05:30 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU, June 27: After trading flat in the beginning of Wednesday's trading session, the Nepal Stock Exchange (Nepse) index shed more than 5 points by midday. The index recouped some of its losses in the latter trading hours but closed in the red nonetheless. The benchmark index registered a loss of 2.78 points to close at 1,258.29 points on Wednesday.

Following the loss, Nepse has failed to add to its gains and has closed in 1,250 - 1,265 points range for the ninth straight day. This shows that the market has been witnessing major indecisiveness in the sessions of late. The lack of conviction is also reflected by cautious trading by market participants.

Turnover remained relatively low as Rs 57 million worth of shares changed hands on the day. Most of the traded sectors closed the day lower. Hydropower sub-index registered a loss of 0.48 percent followed by Banking sub-index which ended the day 0.28 percent lower. Microfinance, Manufacturing & Processing, Life Insurance, Non-Life Insurance, Finance and Development Bank sectors also fell marginally. On the other hand, gains came from mainly from Trading stocks. The group's sub-index climbed up by 1 percent, while Mutual Fund, 'Others' and Hotels sub-indices eked out marginal gains.

Himalayan Distillery Ltd was the most traded stock of the day. Over Rs 194 million worth of the beverage producer's shares were exchanged on the day. Nepal Bank Ltd logged turnover of Rs 42 million. Prabhu Bank Ltd, IME General Insurance Promoter Share and Premier Insurance Co Ltd were other active stocks of the day with respective turnovers of Rs 27 million, Rs 24 million and Rs 14 million.

Among advances, share price of Nepal Agro Laghubitta Bittiya Sanstha turned in the best performance of the day. The microfinance institution's share price rallied to hit the upper circuit of 10 percent. IME General Insurance Company Ltd also witnessed significant strength, registering a gain of 7 percent. Further, share price of Panchthar Power Company was up by 6.47 percent followed by Swabhimaan Laghubitta Bittiya Sanstha Ltd, Arun Kabeli Power Ltd and Kalika Power Company Ltd which saw their respective share prices appreciate by 4 percent each.

Conversely, Gurans Laghubitta Bittiya Sanstha Ltd turned in the worst performance of the day with its share price going down by 6.36 percent. Share prices of Asha Laghubitta Bittiya Sanstha Ltd also fell by 4 percent, while Siddhartha Insurance Ltd's share price fell by 3 percent. Gurans Life Insurance Company Ltd, Radhi Bidyut Company Ltd and Green Development Bank Ltd were among other losing scrips with losses of over 2 percent each.

In corporate space, Premier Insurance Company Ltd has announced to organize its Annual General Meeting on July 16. Distribution of 84 percent stock dividend to its shareholders is among its key agendas. Following capitalization of the respective shares, the insurer will meet the minimum capital requirement mark of Rs 1 billion.

ARKS technical analysis indicates the market continuing to move in a sideways trend with the formation of a small bearish candlestick on Wednesday. Selling pressure has eased off significantly since last week but the market is yet to show any sign of a major rebound. Investors are still in a watchful stance as turnover has also remained in the lower side of the spectrum. A movement toward either direction from the current range will be key in determining possible movement of the index in the near term.

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