KATHMANDU, May 14: The benchmark Nepal Stock Exchange (Nepse) index began on a green note in the first trading hour on Monday. Despite the volatile market session, the index continued to be in a positive zone during the rest of the session. At the end, Nepse closed higher by 6.30 points, at 1,301.34 points.
The Nepse Index was trending in consolidation zone of 1,280 - 1,300 points indicating lack of conviction among investors in the market. The market witnessed a modest turnover of Rs 786 million on the day.
Sub-indices turned in mixed performance on the day. Trading sub-index dropped 2.12 percent followed by Non-Life insurance, Life Insurance, Microfinance and Finance sub-indices which shed 0.43 percent, 0.19 percent, 0.1 percent and 0.07 percent respectively.
On the other hand, Hydropower stocks witnessed considerable strength with the group's sub-index climbing 3.05 percent. Manufacturing & Processing, 'Others' sub-index also surged above 2 percent each. Mutual Fund index advanced by 1.04 percent. Likewise, Hotels, Development Bank and Banking sub-indices edged higher.
Shivam Cements Ltd witnessed the highest turnover in the day. More than Rs114 million worth of its shares changed hands. Next on the list, Prime Commercial Bank Ltd posted turnover of Rs 62 million. Similarly, Premier Insurance Co Ltd and Nepal Bank Ltd recorded the total transaction of over Rs 37 million each. Civil bank Ltd, Hydroelectricity Investment and Development Company Ltd, Janata Bank Nepal Ltd and Butwal Power Company Ltd were also actively traded.
Shivam Cements Ltd continued to rally for second consecutive day and hit positive circuit of 10 percent on Monday. Hydroelectricity Investment and Development Company Ltd also shot up by 9.59 percent. Correspondingly, Kisan Microfinance Bittiya Sanstha Ltd, Corporate Development Bank Ltd and Kalika Laghubitta Bittiya Sanstha Ltd registered gains over 7 percent each. Bhargav Bikas Bank Ltd, Himalayan Power Partner Ltd, and Nepal Hydro Developers Ltd were among the other advances.
In contrast, Himalayan Distillery Ltd turned in the worst performance of the day with a drop of 6.07 percent on its share price. Similarly, United Modi Hydropower Company Ltd, Joshi Hydropower Development Company Ltd registered declines of 5.69 percent and 4.76 percent, respectively. Other top losing stocks on the day include Bishal Bazar Company Ltd, Sagarmatha Insurance Co Ltd and Premier Insurance Co Ltd.
Among companies publishing their quarterly reports on the day, NIC Asia Bank Ltd reported a substantial growth of 145.41 percent in its earnings. Its net profit stands at Rs 2.27 billion. Similarly, net profit of Janata Bank Ltd also grew by 60.56 percent year-on-year. Further, Civil Bank Ltd and Nepal Life Insurance Company Ltd reported 47.21 percent and 7.21 percent increment in their respective net profits.
As per the ARKS technical analysis, the market has formed a bullish marabozu candlestick on the daily timeframe indicating indecision in the current market context. Technical 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)