daily market commentary

Nepse ends flat in lackluster trading

October 11, 2018 09:11 AM


KATHMANDU, Oct 11: The Nepal Stock Exchange (Nepse) ended flat on Wednesday, as the benchmark index failed to hold onto the gain logged in the initial trading hour on the day. Nepse had gained almost 5 points in the initial trading hour. However, it was up by a meager 0.40 points to settle at 1,218.33 points at the close.

The market recorded a sub-par turnover of only Rs 226 million as the investors kept away from the trading floor with holidays just around the bend.

Most of the major sectors closed the day in red. Only Manufacturing & Processing and Banking stocks eked out marginal gains. Hydropower and Microfinance sub-groups came under slight pressure with their respective sub-indices dropping around 0.4 percent each. Sub-indices of Finance and Hotels groups also closed 0.37 percent lower each. All other sub-indices posted marginal movement to the downside. Sanima Mai Hydropower Ltd led the list of active stocks on the day as more than Rs 34 million worth of its shares changed hands. The hydropower company is closing its shareholder's book on Thursday to distribute 10 percent bonus shares and 5 percent cash dividend to its shareholders. Machhapuchhre Bank Ltd and Chilime Hydropower Company Ltd were also actively traded with total transactions of Rs 16 million and Rs 10 million, respectively. Nadep Laghubitta Bittiya Sanstha Ltd, NIC Asia Bank Ltd and Nepal Doorsanchar Company Ltd were among other active stocks of the day. 

In terms of advances, share price of Mega Bank Ltd and Prabhu Bank Ltd went up by over 3 percent each. While Samata Microfinance Bittiya Sanstha Ltd added 2.69 percent on its share price, shares prices of Nepal Hydro Developers Ltd, RSDC Laghubitta Bittiya Sanstha Ltd, IME General Insurance Ltd and Dibyashwori Hydropower Ltd went up by 2 percent each.

On the contrary, City Express Finance Company Ltd struggled as it lost over 5 percent on its share price. Similarly, share price of Nagbeli Laghubitta Bikas Bank fell by 3.89 percent, while Arun Kabeli Power Ltd slipped 3.68 percent. Laxmi Laghubitta Bittiya Sanstha Ltd, Bhargav Bikash Bank Ltd and Nadep Laghubitta Bittiya Sanstha Ltd were the other declining stocks of the day.

On news, Nepse has listed 1.1 million units of Initial Public Offering (IPO) shares of Panchakanya Mai Hydropower Limited for trading. The company, which floated its shares to general public earlier in July, operates a 12-megawatter project on Mai River of eastern Nepal. It has also started work on another project of 6.1 MW capacity.

ARKS technical analysis indicates the index consolidating in the current range following a sell-off that has lasted two weeks. Decreasing volumes in the recent sessions also suggests the market losing momentum at the current juncture. Further, technical indicators present bear dominating the market. Nonetheless, the immediate support in the bourse lies at 1,210 points. Long positions can only be taken if the index rebounds from the current range with significant turnover.

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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