Daily market commentary

Nepse ends lower for fifth straight session

Published On: September 12, 2019 09:51 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU: The secondary market witnessed weakness as the local bourse remained under pressure for most of the trading session on Wednesday. The Nepal Stock Exchange (Nepse) index fell from the very beginning of trading and gave up more than 4 points. Though the benchmark index saw some recovery thereafter, it continued to trade in red and closed the day 3.46 points lower at 1,163.21 points.

With Wednesday's loss, the index has ended in red for fifth straight session. Likewise, the turnover remained below par as only Rs 341 million worth of securities changed hands on the day.

Most of the sectors ended the day lower. Only Mutual Fund sub-index eked out marginal gain. On the other hand, maximum losses came from Hotels and Non-Life Insurance sectors with their respective sub-indices falling by 1.8% and 1.09%, respectively. Similarly, Life Insurance, Microfinance and Manufacturing & Processing sub-indices followed as they ended 0.6%, 0.39% and 0.35%, respectively, lower. Besides, all other sectors recorded marginal losses. 

Shares of Soaltee Hotel Ltd led the list of active stocks with total transaction worth Rs 45 million. Laxmi Bank Ltd Promoter Share, Chhimek Laghubitta Bittiya Sanstha Ltd and Nepal Bank Ltd were next on the list with Rs 19 million, Rs 14 million and Rs 13 million worth of shares traded respectively. Chhimek Laghubitta Bittiya Sanstha Ltd has proposed to distribute 27.11% bonus shares and 17.21% cash dividend for its shareholders from the profit earned in FY2075/76.The proposal, however, is subject to approval of the Nepal Rastra Bank and the micro lender's upcoming Annual General Meeting. Shares of Nepal Life Insurance Company Ltd and Prabhu Bank Ltd were also in demand with total turnovers of Rs 12 million each. 

Among gainers, share prices of Ghalemdi Hydro Ltd and Arun Valley Hydropower Company Ltd went up by over 4% each. Similarly, while Guheshowori Merchant Bank & Finance Co Ltd and Naya Nepal Laghubitta Bikas Bank Ltd also added over 3% each on their respective share prices. Arun Kabeli Power Ltd, API Power Company Ltd and Kalika Power Company Ltd also saw their respective share prices go up by over 2% each.

In contrast, Nabil Equity Fund was the worst performer of the day as it share price tanked over 6%. Laxmi Laghubitta Bittiya Sanstha Ltd and Dibyashwori Hydropower Ltd also saw their respective share prices fall by 5.69% and 5.17%, respectively. Stocks of Ridi Hydropower Development Company Ltd and Himalayan Power Partner Ltd also logged losses of over 2% each. In corporate front, Laxmi Laghubitta Bittiya Sanstha Ltd has proposed to distribute 15% bonus share and 11.32% cash dividend its its shareholders from the accumulated profit till FY 2075/76.The proposal is subject to approval of the Nepal Rastra Bank and the micro lender's Annual General Meeting.  

The index, as per ARKS technical analysis, formed a small bearish candlestick on the daily timeframe marking a fresh five-month low. Momentum gauging Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) both reflect bearish sentiment prevailing in the present context. Nonetheless, the index is seeing modest movements in the current zone at around 1,160 points, indicating a short-term consolidation. Hence, cautious trading is suggested unless a notable movement toward either direction is observed.

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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