Daily market commentary

Nepse ends slightly lower in Tuesday's lackluster trading

Published On: November 27, 2019 11:08 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU: Stocks wavered along the opening level throughout Tuesday's trading hours. The index swung between gains and losses in the afternoon to eventually end the day with a modest decline. At the close, Nepse stood at 1,109.16 points, down 0.91 points against the session earlier. 

With the day's drop, the theme of indecision has continued with slight negative bias. Some investors are still taking selling position in the secondary market but the selling volume has tapered off late. Meanwhile, new investors are still looking for a major impetus that can drive the market's rebound before entering the market with conviction. The bourse saw a total turnover of Rs 296 million on Tuesday.

Most of the sectors closed in the red. Only Trading, Banking and Hydropower stocks climbed higher. Manufacturing & Processing sub-index suffered and dropped 0.73%. Similarly, 'Others' and Hotels sub-indices fell around 0.6% each. Further, all other sectors posted marginal declines. 

Nepal Investment Bank Ltd Promoter Shares led the list of actives with a turnover of over Rs 58 million. Citizen Bank International Ltd Promoter Share followed with a total turnover of over Rs. 38 million. Correspondingly, Nepal Bank Ltd, NMB Bank Ltd and NIC Asia Bank Ltd registered turnovers of Rs. 18 million, Rs. 13 million and Rs. 10 million, respectively. 

Among advances, Salt Trading Corporation jumped 6% followed by National Hydropower Company Ltd which added 4%. Next, NIC Asia Growth Fund units saw a rise of 2.48%. Sanima Mai Hydropower Ltd, Excel Development Bank Ltd and Gurans Laghubitta Bittiya Sanstha Ltd also climbed over 2% higher.

In contrast, shares of Union Hydropower Ltd suffered the most registering a slump of 5.66%. Central Finance Co. Ltd sank 3.57% while Laxmi Equity Fund registered a decline of 3.50%. Joshi Hydropower Development Company Ltd, Sindhu Bikash Bank ltd and Samata Microfinance Bittiya Sanstha Ltd were among other top losing scrips.

On the news front, Kailash Bikas Bank Ltd announced 16% stock dividend and 2.77% cash dividend for the year 2018/19. In the year earlier, the bank distributed 17% cash dividend. The development bank is in due course to be acquired by Prime Commercial Bank Ltd. 

ARKS technical analysis indicates the market forming a spinning top bearish candlestick as the market witnessed another day of indecision. The selling pressure which was witnessed in the prior week have slightly lost steam. 

Flattening of technical indicators also confirms the same but any sign of reversal is yet to be observed. Volume, meanwhile, remains dismal indicating lack of any major momentum in the index's movement. The support of 1,100 has still held ground where the index's movement must be closely monitored for any indication of the market's possible course.  

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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