Daily market commentary

Nepse ends choppy trading session in green

Published On: May 29, 2019 11:56 AM NPT By: Republica


KATHMANDU: The benchmark Nepal Stock Exchange (Nepse) index began on a weaker note and traded slightly lower till second trading hour. The index recovered its losses in the afternoon to close higher at the session's close.

Nepse ended Tuesday's trading at 1,305.49 points – up 2.53 points against the session earlier. 

With the meager increments in Nepse index, the bourse also witnessed an improved total turnover of Rs 756 million compared to Rs 519 million in the session earlier.

Hotels, Non-Life Insurance, 'Others', Microfinance and Life Insurance sectors closed the day on a lower side. On the other hand, Manufacturing & Processing sub-index followed suit with a surge of 2.93%. Mutual Fund and Development Bank sub-index also registered an advance of over 1% each. 

Likewise, Finance, Banking and Hydropower sub- index also edged higher on Tuesday. 

Shares of Shivam Cement Ltd witnessed the highest turnover for the second consecutive day. More than Rs 164 million worth of its shares changed hands. Next, Prabhu Bank Ltd posted turnovers of Rs 161 million. Nepal Bank Ltd, Upper Tamakoshi Hydropower Company Ltd and Jyoti Bikas Bank Ltd saw turnovers of Rs 59 million, 30 million and 26 million, respectively. Similarly, Life Insurance Co. Ltd, Nepal Credit & Commercial Bank Ltd and Nepal Doorsanschar Company Ltd were also traded actively. Stocks of Jyoti Bikas Bank Ltd hit positive circuit of 10% on Tuesday. Reliance Finance Ltd, Shivam Cement Ltd and Sparsha Laghubitta Bittiya Sanstha Ltd posted the gains of over 9% apiece. Kankai Bikas Bank Ltd, Manjushree Finance Ltd and NIBL Pragati Fund were among other advances.

In contrast, shares of Mountain Hydro Nepal Ltd and Joshi Hydropower Development Company Ltd turned in the worst performance of the day with a drop of over 6% each. Similarly, Himalayan Distillery Ltd registered declines of 5% on its share price. 

Likewise, shares of Civil Laghubitta Bittiya Sanstha Ltd and Dibyashwori Hydropower Ltd registered decline of 4.41% and 4.34%, respectively. Other top losing scrips include Mahila Sahayatra Microfinance Bittiya Sanstha Ltd, Suryodaya Laghubitta Bittiya Sanstha Ltd and Naya Nepal Laghubitta Bittiya Bikas Bank Ltd.

On the announcements front, Deva Bikas Bank Ltd has announced its book closure date for the upcoming Annual General Meeting (AGM). The investors holding shares till June 20 will be eligible to claim the 5.5% bonus shares and participate in the upcoming AGM of the Bank. After the adjustment of the bonus share, the paid up capital will reached to Rs 2.67 billion.

As per the ARKS technical analysis, the market has formed a bullish candlestick on the daily timeframe with a notable turnover. 

However, technical indicators like Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) suggest bears slightly dominant in the present scenario. Hence, investors are suggested to be cautions from taking any significant positions in the equity market in following 

sessions.

This column is produced by ARKS Capital Advisors Ltd
www.arkscapitaladvisors.com
(Views expressed are those of the producer and do not necessarily reflect those of this publication)


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