Daily market commentary

Nepse ends week on a flat note

Published On: December 27, 2019 08:31 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU: The Nepal Stock Exchange (Nepse) wavered along the opening level throughout the day. The index fluctuated between gains and losses in most of the sessions and eventually closed the day with a modest decline. Nepse closed the week 0.62 points lower at 1167.41 points on Thursday.

The day’s decline shows that indecision is still visible in the secondary market. However, the market has managed to hold its ground above 1,150 points. And, total turnover has also managed to stand above half billion rupees mark at Rs 588 million.

Most of sectors closed the day in red. Manufacturing & Processing sub-index was down by 1.03%. Likewise, Hotels, Hydropower, Finance, Non-Life Insurance, Others, Microfinance and Mutual Fund sub-indices closed the day with meager losses. On the other hand, trading sub-index went up by 6.26%, while Banking, Development Bank and Life Insurance sub-indices also edged higher.

Nepal Bank Ltd was the most active stock of the day as Rs 132 million worth of the commercial bank’s shares were traded on the day. 

NIC Asia Debenture 2082/83, Agriculture Development Bank Ltd, Nepal Life insurance Company Ltd, Prabhu Bank Ltd and Himalayan Distillery Ltd were other active scrips with turnovers of over Rs 60 million, Rs 42 million, Rs 23 million, Rs 22 million, and Rs 21 million, respectively. Meanwhile, NIC Asia Bank Ltd and Shivam Cements Ltd registered turnovers of over Rs 14 million each.

Among advances, Nepal Seva Laghubitta Bittiya Sanstha Ltd saw its share price go up by 8.8%. 

Salt Trading Corporation closely followed with a gain of 8.34%, while share price of Union Hydropower Company Ltd rose by 3.77%. Corporate Development Bank Ltd, Tinau Mission Development Bank Ltd, and Ganapati Microfinance Bittiya Sanstha Ltd were among advancing scrips with gains of over 2% each.

On the other hand, Panchthar Power Company Ltd turned in the worst performance of the day giving up more than 7.62%. 

Meanwhile, share prices of Himalayan Power Partner Ltd and Himalayan Distillery Ltd were down by 4.82% and 3.19%, respectively. 

Other major declining units include Nepal Finance Ltd, Arun Kabeli Power Ltd, Shrijana Finance Bittiya Sanstha Ltd and Butwal Power Company Ltd which lost over 2% each.

In corporate space, Janautthan Samudayik Laghubitta Bittiya Sanstha Ltd has proposed to distribute 25% bonus shares to its shareholders for FY2018/19.

The proposal is subject to approval of Nepal Rastra Bank and the upcoming annual general meeting (AGM) of the company.

ARKS technical analysis indicates the market forming a small bearish candlestick at the current juncture. Similarly, the market has continued to trade between the consolidation range of 1,150 and 1,180 points. 

Likewise, the market is also holding its ground above the support level of 1,150 points mark where the index’s movement will be crucial in determining further path of the secondary market. Hence, cautious trading is suggested.

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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