KATHMANDU, June 22: Share trading began with a modest drop on Thursday, but staged a recovery around mid-day. The Nepal Stock Exchange (Nepse) index bounced back and forth across the opening level finally eking out a gain of a mere 0.62 points. At the close, the index settled at 1,218.46 points.
The equity market continued to record another slack trading session with a lower than average turnover of Rs 196 million on Thursday. The low activity also indicates a lack of conviction witnessed in the market recently ahead of the forthcoming monetary policy.
The benchmark index posted marginal gain as losses in Hotels, Trading, Microfinance, Development Bank and Manufacturing/ Processing sectors were mitigated by gains in Others, Insurance, Finance, Hydropower and Banking segments. Hotels Sub-index fell by the highest 3.4 percent, while Other Sub-index advanced the most recording gain of over 1 percent.
In terms of market activity, Nabil Bank Ltd Promoter Share logged the highest turnover of the day as Rs 9 million worth of its shares changed hands. Secondly, Progressive Finance Ltd Promoter Share recorded a turnover of Rs 8 million. The finance company is set to provide 280 percent rights shares to its shareholders. Stocks of Nepal Investment Bank Ltd, National Life Insurance Company Ltd and Prime Life Insurance Company Ltd were also active on the day.
Arambha Microfinance Bittiya Sanstha Ltd was the biggest gainer of the day as its shares rallied over 7 percent. Shares of Ridi Hydropower leapt over 4 percent, while Arun Kabeli Power Ltd, Goodwill Finance Company Ltd and Vijaya Laghubitta Bittiya Sanstha Ltd posted gains of over 3 percent each.
At the other end of the spectrum, National Hydro Developers Ltd was the biggest loser of the day as its share price fell by 10 percent.
Sindhu Bikas Bank Ltd, Soaltee Hotel Ltd and United Modi Hydropower Ltd also shed 6.94 percent, 5.81 percent and 4.57 percent, respectively.
In other news, Nepse has opened trading of shares of Rairang Hydropower Development Company Ltd. The company had recently issued an Initial Public Offering (IPO) of Rs 84 million. Meanwhile, member banks of Nepal Bankers Association have agreed to put a cap on interest rate on deposits yet again. The decision came on the back of many commercial banks offering interest rate in the excess of 12 percent on fixed deposits. The agreement limits the interest rates on fixed deposits and saving accounts for individual clients at 11 percent and 7 percent, respectively.
ARKS technical analysis model indicates a small bullish candlestick formation in the daily timeframe as the index witnessed a modest recovery on the last trading session of the week. The candle also reflects lack of direction on the day. Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) both indicate a feeble momentum prevalent in the market at present.
This column is produced by ARKS Capital Advisors Ltdwww.arkscapitaladvisors.com
(Views expressed are those of the producer and do not necessarily reflect those of this publication)