Daily market commentary

Nepse ends lower following broad decline

Published On: June 3, 2019 02:30 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU, June 3: The stock market moved lower from the beginning of trading, and remained in the negative territory throughout Sunday's trading session. At the end of the session, the Nepal Stock Exchange (Nepse) index faltered further to close the day with a loss of 13.79 points at 1,305.68 points.

Following the index, sluggish trading was experienced in the day with a turnover of only Rs 753 million compared to Rs 1.528 billion in the session earlier.

Hydropower stocks struggled the most as the Hydropower sub-index tanked 1.75 percent. 'Others', Microfinance and Banking sectors also witnessed losses with their group's sub-index falling 1.63 percent, 1.2 percent and 1.17 percent, respectively. The sub-indices of Life Insurance, Non-Life Insurance, Finance, Development Bank and Mutual Fund also ended the day marginally lower. On the other hand, Hotels and Manufacturing & Processing sub-indices closed the day in the green note.

Shares of Premier Insurance Co Ltd led the list of top turnover of the day. More than Rs 130 million worth of shares exchanged hands on the day. Next on the list, Shivam Cements Ltd posted turnovers of Rs 93 million. Stocks of Nepal Bank Ltd, Prabhu Bank Ltd and Upper Tamakoshi Hydropower Company Ltd saw total transactions of Rs 44 million, 42 million and 34 million, respectively. Likewise, NIC Asia Bank Ltd, Kailash Bikas Bank Ltd, Mega Bank Nepal, Nepal Doorsanschar Company Ltd, and Kankai Bikas Bank Ltd were the other actively traded stocks of the day.

Shares of Kankai Bikas Bank Ltd and Taragaon Regency Hotel Ltd led the list of gainers on the day. The respective share prices rallied 9.88 percent and 9.8 percent respectively. Next, Mountain Hydro Nepal Ltd and Universal Power Company Ltd closed over 5 percent each. Similarly, shares of Goodwill Finance Co. Ltd, Reliance Finance Ltd and Kailash Bikas Bank Ltd jumped over 3 percent apiece.

In contrast, shares of Panchthar Power Company Ltd tanked to hit the lower circuit of negative 9.81 percent. Green Development Bank Ltd, Swadeshi Laghubitta Bittiya Sanstha Ltd and Himalaya Urja Bikas Company Ltd also dropped 8.87 percent, 6.04 percent and 5 percent respectively. Furthermore, Guheshowori Merchant Bank & Finance Co Ltd, Sparsha Laghubitta Bittiya Sanstha Ltd and Ghalemdi Hydro Ltd suffered losses of over 4 percent each.

On the announcements, Surya Life Insurance Company Ltd has announced its book closure date for the upcoming Annual General Meeting (AGM). The investors holding shares till June 10 will be eligible to claim the 12 percent bonus shares and participate in the upcoming AGM of the Bank.

ARKS technical analysis indicates the market forming a bearish candlestick reflecting selling pressure in the market. Similarly, technical indicators like Moving Average Convergence/Divergence (MACD) and Relative Strength Index (RSI) suggests the bear market prevailing in the current context. Hence, cautious trading is suggested for the investors in the present juncture.

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)


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