Daily Market Commentary

Nepse ends the week flat

Published On: April 5, 2019 02:30 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU, April 5: Nepal Stock Exchange (Nepse) finished flat on Thursday -- the last trading day of the week. The benchmark index fell sharply in initial trading, shedding almost 6 points. However, the market recouped its losses very soon and traded slightly higher for most of the afternoon. The benchmark index retraced toward the session's end to close the day 0.64 points lower at 1165.20 points.

After a rally of three straight days, the index took a breather and posted a modest decline on the day as both buying and selling pressure was observed. Market activity was 22 percent down on Thursday as stocks worth only Rs 423 million traded hands on the day.

Sub-indices reported mixed performance on the day. Manufacturing & Processing, Banking, Finance and Non-Life Insurance ended the day marginally higher, while Hotels stock was the major drag of the day with its sub-index shedding 1.34 percent. Besides, Microfinance, Life Insurance, Development Bank and Hydropower stocks struggled as their respective sub-indices closed in negative territory.

NIC Asia Bank Ltd led the list of companies in terms of transaction on Tuesday. Over Rs 47 million worth of the commercial bank's shares changed hands on Thursday. Next on the list were Nepal Credit and Commercial Bank Ltd, Civil Bank Ltd and Nepal Bank Ltd with total transactions of Rs 25 million, Rs 20 million and Rs 18 million, respectively. Further, shares of Machhapuchhre Bank Ltd, Janata Bank Nepal Ltd, NMB Bank Ltd and Everest Bank Ltd were also traded actively.

Among advances, Sindhu Bikas Bank Ltd and Bhargav Bikas Bank Ltd witnessed considerable strength as share prices of both the development banks shot up by over 5 percent each. Stock price of Suryodaya Laghubitta Bittiya Sanstha Ltd and Janaki Finance Ltd also rallied by 4.53 percent and 3.57 percent, respectively. Unit price of NIBL Samriddhi Fund 1 also climbed up by over 3.45 percent.

However, shares of Universal Power Company Ltd tanked almost 10 percent on the day. Likewise, unit prices of Rastriya Beema Company Ltd Promoter Share, Kalika Laghubitta Bittiya Sanstha Ltd, Kankai Bikas Bank Ltd and Nepal Hydro Developers Ltd was over 3 percent each. Other losing stocks on the day were Kisan Microfinance Bittiya Sanstha Ltd, Khanikhola Hydropower Company Ltd and Nagbeli Laghubitta Bittiya Sanstha Ltd.

On the news, Nepse listed 37,920 units of bonus shares of Samata Microfinance Bittiya Sanstha Ltd for trading in the secondary market. The company is also issuing 200 percent right shares to its shareholders. After the adjustment of bonus and right shares, the paid-up capital of the company will reach Rs 182 million.

As per the ARKS technical analysis, the market formed a doji candlestick which indicates indecision in the market. However, the overall sentiment in the market still remains bullish as reflected by technical indicators. Currently, the index is hovering around its resistance zone. Hence, a breakout above this level might trigger further upward movement in the short-term.

Leave A Comment