Daily Market COmmentary

Nepse ends year on a flat note

Published On: April 12, 2019 05:00 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU, April 12: The local bourse witnessed choppy session throughout Thursday. Though stocks climbed in the beginning hour with Nepal Stock Exchange (Nepse) reaching as high as 1,190 points, the benchmark index fell from its intraday high after midday to waver around the opening level for the remaining session. Eventually, the index shed 0.59 points to close the day essentially unchanged at 1.184.02 points.

Investors approached the last trading day of the Nepali year with caution, contributing to the lackluster trading witnessed in the day. Turnover remained slightly subdued as the exchange witnessed total turnover of Rs 396 million only. Nepse, which started the year at 1,277.55 points, logged total loss of 93.53 points by the year's end.

Bears remained dominant throughout the year with some rebound witnessed late in the review period.

Traded sectors also posted modest moves to either side of the spectrum. Manufacturing & Processing sub-index posted a loss of 1.58 percent. Sub-indices of Hotels, Finance and 'Others' sectors also edged lower. Among gainers, Life Insurance and Non-Life Insurance sub-indices registered minimal gain of 0.15 percent and 0.11 percent, respectively. Development Bank, Banking and Hydropower segments also eked out marginal gains.

Shares of Kumari Bank Ltd were traded actively on the day with turnover of Rs 36 million. NMB Bank Ltd was next with total turnover of over Rs 30 million. Similarly, other commercial banks witnessed active market participation. NIC Asia Bank Ltd, Nepal Bank Ltd and Prabhu Bank Ltd registered turnover of Rs 25 million, Rs 15 million and Rs 14 million, respectively.

Among advances, shares of Everest Insurance Company Ltd turned in the best performance of the session. Securities Board of Nepal (Sebon) approved 300 percent rights issue of the non-life insurance insurer on Thursday. Subsequently, strength was also visible among other insurance companies as share prices of NLG Insurance Company Ltd and Sagarmatha Insurance Company Ltd went up by 4.88 percent and 3.01 percent, respectively. Besides, Miteri Development Bank Ltd, Shine Resunga Development Bank Ltd and Sana Kisan Bikas Bank Ltd saw their share prices go up by over 2 percent each.

Among losing sides, Ghalemdi Hydro Ltd's stocks took a major hit. The company's share price tanked almost 9 percent. Janaki Finance Ltd also saw its share price go down by 4.62 percent. Unilever Nepal Ltd, Bhargav Bikash Bank Ltd and United Finance Ltd also posted decline of over 3 percent each.

In news, Gurans Life Insurance Company Ltd started floating 50 percent rights issue from April 11. After the issue worth Rs 297 million and capitalization of 8 percent bonus shares, the insurer's paid-up capital will reach Rs 938 million.

ARKS technical analysis indicates a doji candlestick formation on the daily timeframe, reflecting indecision seen in the market. The index has stretched its consolidation for four straight days and has maintained its ground over 1,180 points. Technical indicators suggest slight bullish sentiment still prevailing in the current scenario. A rebound might see the index test the immediate resistance at 1,200 points. The index's movement around the zone might present further plausible direction for the equity market.

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