Daily market commentary

Nepse extends gains for second straight day

Published On: January 16, 2019 03:30 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Jan 16: Nepalese stocks witnessed steady advance throughout Tuesday's trading session. The Nepal Stock Exchange (Nepse) index which opened trading at 1,178.03 points climbed more than 8 points by mid-session. Similarly, later trading hours saw the index add to its gains to close the day firmly higher. Nepse ended the day at 1,195.54 points – up 17.51 points or 1.49 percent compared to the session earlier.

Strength remained visible in the bourse for second consecutive day leading to the session's broad rally. Overall market participation also saw some improvement as the equity market registered a total turnover of over Rs 397 million.

In terms of sectoral performance, maximum gains came from hydropower stocks which led the Hydropower sub-index 4.35 percent higher. Significant strength was also visible among insurance sector stocks as reflected by gains of 4.14 percent and 3.23 percent in Non-Life Insurance and Life Insurance sub-indices, respectively. Microfinance sub-index, meanwhile, rallied 4.14 percent. Further, 'Others', Trading and Development Bank sub-indices closed higher by over 1 percent each. Banking sub-index also closed the day marginally higher.

Shares of Citizens Investment Trust continued to trade actively. More than Rs 80 million worth of shares of the company changed hands on the day. Secondly, Nepal Bank Ltd posted a total turnover of over Rs 19 million. Likewise, Nepal Life Insurance Company Ltd's shares logged in a total transaction of over Rs 18 million followed by shares of Premier Insurance Company Ltd with a turnover of over Rs 16 million. Further, Sana Kisan Bikas Bank Ltd, Nepal Insurance Company Ltd and Chhimek Laghubitta Bikas Bank Ltd logged in turnovers of Rs 15 million, Rs 13 million and Rs 10 million, respectively.

Among gainers, four companies hit the upper circuit of 10 percent on the day. Citizens Investment Trust led the list with a surge of 9.99 percent. Grameen Bikas Laghubitta Bittiya Sanstha Ltd, Upper Tamakoshi Hydropower Ltd and Arun Kabeli Power Ltd followed suit with gains of over 9 percent each. Additionally, City Express Finance Co Ltd, Forward Community Microfinance Bittiya Sanstha Ltd and Shangrila Development Bank Ltd registered advances of over 6 percent apiece.

In contrast, Siddhartha Equity Fund came under pressure. Its unit price declined 2.71 percent. Similarly, Gandaki Bikas Bank Ltd sank 2.6 percent, while Himalayan Distillery Ltd fell 1.94 percent. In the meantime, shares of Arun Valley Hydropower Development Company Ltd and Gurkhas Finance Ltd posted losses of 1.85 percent each.

On the corporate front, First Microfinance Laghubitta Bittiya Sanstha Ltd reported an 18 percent year-on-year growth in its net profit as per its second quarterly financials of Fiscal Year 2018/19. In other news, Gurans Life Insurance Company Ltd announced 8 percent stock dividend to its shareholders from its profit of Fiscal Year 2016/17.

ARKS technical analysis indicates the market forming a bullish candlestick for a second consecutive session. Following the day's gain, technical indicators also suggest slight bullish sentiment prevailing. Hence, a breach of 1,200 points with significant volume might present buying opportunity for investors in the short run.

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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