Daily market commentary

Nepse ends week in red

Published On: August 23, 2019 12:05 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU: The benchmark Nepal Stock Exchange (Nepse) index rallied more than 6 points in the first trading hour on Thursday. However, stocks failed to sustain the gains in the latter trading hours by dragging back to the opening level to close the day on a meager decrement. The equity index settled at 1213.06 points – a drop of 0.99 points against Wednesday's close.

The bourse witnessed the low market activity as only Rs 261 million worth of shares changed hands.

Most of the sectors closed lower following the broader market. Only Hotels, Others, Life Insurance and Microfinance sub-indices posted marginal gains. Trading sub-index fell the most and closed 1.7 percent lower. Non-Life Insurance and Finance sub-indices followed the index with losses of 0.87 percent and 0.64 percent, respectively. Development Bank, Hydropower, Manufacturing & Processing, Mutual Fund and Banking sub-indices closed in the red with minimal losses.

NIC Asia Bank Ltd, Prabhu Bank Ltd, and Agriculture Development Bank Ltd were the most actively traded stocks of the day. The companies posted turnovers of over Rs 19 million, 16 million and 12 million respectively. Likewise, shares of Dev Bikas Bank Ltd Promoter Share and Nepal Bank Ltd registered the turnovers of over Rs 9 million and 8 million correspondingly. Nepal Investment Bank Ltd, Mahalaxmi Bikas Bank Ltd, and Rasuwagadhi Hydropower Company Ltd were among other top turnover stocks.

In terms of gainers, Sabaiko Laghubitta Bittiya Sanstha Ltd, Civil Laghubitta Bittiya Sanstha Ltd, and Dibyashwori Hydropower Ltd led the list as their share prices rose above 5 percent each. Similarly, Ridi Hydropower Development Company Ltd scrips added 4.76 percent on its share price. Other gaining scrips include Nabil Equity Fund, Samudayik Laghubitta Bittiya Sanstha Ltd and Jyoti Bikas Bank Ltd rallied over 3 percent apiece.

On the other hand, shares of Shrijana Finance Bittiya Sanstha Ltd fell the most as its share price dropped 4.74 percent. Stocks of Bishal Bazar Company Ltd, Nepal Insurance Company Ltd and Laxmi Value Fund-1 saw losses of over 3 percent each. Shares of Everest Insurance Company Ltd, Janaki Finance Ltd and Prudential Insurance Company Ltd shed over 2 percent apiece.

On the earnings front, Dibyashwori Hydropower Ltd published its fourth quarterly financials of the Fiscal Year 2018/19. As per the report, the hydropower posted a net loss of Rs 33.3 million. Among finance companies, World Merchant and Finance Ltd reported year-on-year net profit which stands at Rs 5.38 million.

As per the ARKS technical analysis, the market formed a bearish candlestick on the daily time frame. Hence, the investors are suggested to trade cautiously as bear momentum is still prevailing in the market supported by technical indicators. A rebound from the current level backed by significant turnover might present buying opportunities for traders and investors.

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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