Daily market commentary

Nepse ends in green in choppy trade

Published On: December 23, 2019 09:00 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU: Stocks witnessed some volatility on Sunday as the Nepal Stock Exchange (Nepse) index revolved between gains and losses throughout the day. At the end, the Nepal Stock Exchange (Nepse) index closed the day at 1,150.81 points with a minimal gain of 1.17 points.

The index has managed to hold its ground above the psychological support at 1,150 points. However, market participation dropped as total turnover stood at only Rs 374 million on the first trading day of the week.

Trading groups witnessed mixed performance on the day. While Manufacturing & Processing and Hotels sub-indices ended the day in the upper side of spectrum with gains of 3.26% and 2.55%, Development Bank, Others, Microfinance and Mutual Fund eked out marginal gains. 

On the other hand, Trading stocks declined the most as its sub-index fell by 1.85%. Banking, Trading, Hydropower, Finance, Non-Life insurance and Life Insurance saw modest drops.

Shivam Cements Ltd saw the highest turnover of the day as Rs 47 million worth of shares of the company were traded on the day. Banking stocks like NMB Bank Ltd, Nepal Bank Ltd, Nabil Bank Ltd and Nepal Credit and Commercial Bank Ltd logged total turnovers of Rs 33 million, Rs 28 million, Rs 25 million, and Rs 16 million, respectively. Surya Life Insurance Company Ltd, Jyoti Bikas Bank Ltd Promoter Share, Deva Bikas Bank Ltd and NIC Asia Bank Ltd were among other active stocks of the day.

Stocks of Shivam Cements Ltd and Panchthar Power Company Ltd hit the upper circuit of 10% on the day. Following next were Ridi Hydropower Development Company Ltd and Karnali Development Bank Ltd which added 4.29% and 4.08% on their respective share prices. 

Likewise, share prices of Deva Bikas Bank Ltd, Vijaya Laghubitta Bittiya Sanstha Ltd, Mountain Hydro Nepal Ltd and United Modi Hydropower Ltd rallied by over 3% each.

Conversely, Nepal Finance Ltd shares hit the negative circuit of 10% on Sunday. Arun Kabeli Power Ltd, Mahuli Samudayik Laghubitta Bittiya Sanstha Ltd and Synergy Development Company Ltd saw their respective share prices fall by 6.66%, 5.97% and 5.55%. Share prices of Summit Laghubitta Bittiya Sanstha Ltd, Himalaya Urja Bikas Company Ltd, Gurans Laghubitta Bittiya Sanstha Ltd and Mithila Laghubitta Bittiya Sanstha Ltd fell by 3% each.

On technical front, Nepse index formed a spinning top candlestick on the daily timeframe suggesting indecision in the market at the current juncture. Similarly, the market has continued to trade between the consolidation range of 1,150 to 1,180 points. Nonetheless, the market closed nearby its support level of 1,150 points mark where the index's movement will be crucial in determining future course of the secondary market. Hence, investors are suggested to be cautious.

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


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