Daily market commentary

Nepse extends losses for third straight day

Published On: June 5, 2019 05:30 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU, June 5: The Nepal Stock Exchange (Nepse) index opened the day's trading on a positive note and traded in green for the first trading hour. However, stocks gave ground in the latter trading hours as the index retraced below 1,290 points. Hence, the benchmark index closed the trading day at 1,289.28 points – a meager decrement of 3.56 points against the session earlier.

Following the day's losses, the equity index has closed lower for a third straight session. Market participation saw slight improvement as Rs 715 million worth of shares changed hands in the day against turnover of over Rs 698 million on Tuesday.

On the sectoral front, most of the sub-indices ended the day in red. Trading sub-indices posted the declines of 1 percent on the day. Further, sub-indices of Non-Life Insurance, Microfinance, Others, Hydropower, Life Insurance, Banking, and Mutual fund scrips witnessed minor decrements.

On the other hand, Hotels and Manufacturing & Processing sectors registered gains of 1.56 percent and 1.5 percent, respectively. Meanwhile, Development Bank and Finance sub-indices recorded marginal gains on the day.

Shivam Cements Ltd led the list of top turnovers scrips on Tuesday. More than Rs 121 million worth of the shares changed hands. Shares of Prabhu Bank Ltd and Nepal Bank Ltd witnessed active participation with turnovers of Rs 93 million and Rs 48 million, respectively. Likewise, Taragaon Regency Hotel Ltd, Kailash Bikas Bank Ltd, and Agriculture Development Bank Ltd logged in turnovers of over Rs 20 million each. Shares of Upper Tamakoshi Hydropower Company Ltd, Nepal Credit & Commercial Bank Ltd and Premier Insurance Co Ltd were also actively traded.

Shares of Taragaon Regency Hotel Ltd turned in the best performance for the second consecutive day as its share price surged by 6.98 percent. Gurans Laghubitta Bittiya Sanstha Ltd, Kankai Bikas Bank Ltd and Guheshowori Merchant Bank & Finance Co Ltd posted gains of 6.85 percent, 5.38 percent, and 4.72 percent respectively. Likewise, Kailash Bikas Bank Ltd, Shivam Cements Ltd, Panchthar Power Company Ltd, and Best Finance Company Ltd were among other top gainers.

On the other hand, shares of Joshi Hydropower Development Company Ltd dropped 6.38 percent on Tuesday. It was followed by stocks of Multipurpose Finance Company Ltd, Miteri Development Bank Ltd and Mero Microfinance Bittiya Sanstha Ltd which closed 6.08 percent, 5.6 percent and 5.37 percent respectively. Similarly, shares of Manjushree Finance Ltd and Corporate Development Bank Ltd shed over 4 percent each.

On the corporate front, Ngadi Group Power Ltd has published its third quarter report reporting a meager loss of 3.53 percent in its net profit.

As per ARKS technical analysis, the market has formed a bearish candlestick on the daily time period by continuing the selling dominance in the equity market. Likewise, technical indicators like Moving Average Convergence/Divergence (MACD) and Relative Strength Index (RSI) also shows the bears momentum in the secondary market. Hence, further downfall can be expected in the short run with the markets support resting at around 1,250 points marks.

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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