KATHMANDU, May 13: The benchmark Nepal Stock Exchange (Nepse) index began on a feeble note and traded slightly lower in the first trading hour. The index recovered its losses in the afternoon to close higher at the session's close.
Nepse ended Sunday's trading at 1,295.03 points – up 3.07 points against the session earlier.
The stocks continued to trade range bound with modest movements in the recent sessions. The index is trending in consolidation zone of 1,280 – 1,300 points, suggesting lack of conviction in the bourse. Market participation remained moderate. The bourse witnessed a total turnover of Rs 848 million including Rs 164 million worth of transactions of Sanima Bank Ltd Promoter Share.
Traded sectors closed the day mixed with Hotel stocks leading gains. The group's sub index rallied 5.01 percent. Manufacturing & Processing sub-index followed suit with a surge of over 4 percent. Non-Life Insurance sub-index also registered an advance of over 1 percent, while Finance sub-index edged higher.
On the other hand, Mutual Fund sub-index sank 0.81 percent. Development Bank sub-index also fell 0.51 percent. Further, Life Insurance, Microfinance, Hydropower and Banking sub-indices fell marginally.
Sagarmatha Insurance Company Ltd witnessed the highest turnover in the day after the insurer announced 86 percent bonus shares to its shareholders on Friday. More than Rs 68 million worth of its shares changed hands. Next, Shivam Cements Ltd and Premier Insurance Company posted turnovers of Rs 67 million and Rs 66 million, respectively. Oriental Hotels Ltd, Nepal Bank Ltd and Surya Life Insurance Company Ltd were also traded actively.
Shivam Cements Ltd continued to rally and hit positive circuit of 10 percent on Sunday. Premier Insurance Company Ltd also shot up by 9.87 percent. Correspondingly, Oriental Hotels Ltd and Nepal Hydro Developers Ltd registered gains of over 8 percent each. Surya Life Insurance Company Ltd, Himalayan Distillery Ltd and Soaltee Hotels Ltd were among other advances.
In contrast, Suryodaya Laghubitta Bittiya Sanstha Ltd turned in the worst performance of the day with a drop of 7.26 percent on its share price. Similarly, Nabil Equity Fund, Synergy Power Development Ltd and Mountain Hydro Nepal Ltd registered declines of 5.78 percent, 4.90 percent and 4.34 percent, respectively. Other top losing equities include Gandaki Development Bank Ltd, Mirmire Laghubitta Bittiya Sanstha Ltd and Summit Microfinance Development Bank Ltd.
On the announcement front, Surya Life Insurance Company Ltd proposed 12 percent bonus shares to its shareholders for the Fiscal Year 2017/18. The life insurer is also due to issue 70 percent right shares.
As per the ARKS technical analysis, the market has formed a bullish hammer candlestick on the daily timeframe indicating some strength seen in the day. Nonetheless, the market has stretched its consolidation after a month long rally. Momentum indicators also suggest neutral sentiment in the current scenario.
Hence, investors are suggested to maintain a cautious stance to track any possible breakouts towards either side of 1,280 to 1,300 points consolidation range.
This column is produced by ARKS Capital Advisors Ltd
(Views expressed in the article are those of the producer and do not necessarily reflect those of this publication)