KATHMANDU, Nov 1: Stocks came under pressure since the beginning of trading session on Wednesday as the Nepal Stock Exchange (Nepse) index dropped around 5 points by the afternoon. However, the index rose at the closing hours, but still posted a loss of 2.90 points to end the day at 1,221.46 points.

In spite of the rise in the previous day, the benchmark index failed to maintain its momentum on Wednesday. With the fall in Nepse, daily turnover also dropped significantly. Over Rs 167 million worth of shares were traded in the exchange on Wednesday compared to Rs 221 million a day earlier.

Most of the major sub-indices followed the broader market and ended the day lower. Hydropower stocks struggled as reflected by a 0.56 percent decline in its sub-index. Similarly, sub-indices of Banking and Microfinance groups tumbled by 0.51 percent each. Sub-indices of Development Bank and Finance stocks also posted marginal losses. On the other hand, Manufacturing & Processing sub-index added 1.35 percent, followed by sub-indices of Non- Life Insurance and Others which posted gains of 0.54 percent and 0.41 percent, respectively.

Prabhu Bank Ltd was the most actively-traded stock on the day with total transactions of Rs 9 million. More than Rs 8 million worth of stocks of NIC Asia Bank Ltd also changed hands on the day. Further, shares of Civil Bank Ltd and Life Insurance Co Nepal Ltd posted turnovers of over Rs 6 million each. Deva Bikas Bank Ltd, NMB Bank Ltd, and Everest Bank Ltd were the other active stocks of the day.

Nepal Seva Laghubitta Bittiya Sanstha Ltd led the list of gainers for the second straight day. Its price surged by almost 10 percent. Next, shares of Barun Hydropower Company Ltd posted a gain of 6 percent, while share price of Ngadi Group Power Ltd went up by 3 percent. Besides, securities including Global IME Laghubitta Bittiya Sanstha Ltd, Nerude Laghubitta Bikash Bank Ltd, and NMB Hybrid Fund L-1 were among other advances posting gains of over 2 percent each.

Conversely, shares of Chhyangdi Hydropower Ltd posted the biggest loss of 4 percent. It was followed by Jalabidyut Lagani Tatha Bikas Co Ltd and mutual funds of Global IME Sammunat Scheme-1 which logged losses of 3.7 percent and 3.6 percent, respectively. Similarly, Support Microfinance Bittiya Sanstha Ltd, Taragaon Regency Hotel Ltd and Kalika Laghubitta Bittiya Sanstha Ltd also posted loss of over 3 percent.

In the corporate space, Hathway Finance Company Ltd reported a 25 percent decline in its net profit to Rs. 3.77 million as per its financial statement for the first quarter of Fiscal Year 2018/19. Similarly, Srijana Finance Ltd posted net profit of Rs 4.69 million, against loss of Rs 20 million in the same period last year. In other news, Everest Insurance Company will be closing its shareholders book on November 13 to issue 105 percent promoter right shares. Meanwhile, Kisan Micro Finance Bittiya Sanstha Ltd will be issuing 50 percent rights issue from November 18.

As per the technical analysis, the index formed a small bearish candlestick, erasing some of its previous day's gain. Technical indicators also suggest further downward movement is likely. Nonetheless, the index is yet to break its immediate support of around 1,215-point mark. Hence, cautious trading is suggested in the present context.

This column is produced by ARKS Capital Advisors Ltd www.arkscapitaladvisors.com
(Views expressed are those of the producer and do not necessarily reflect those of this publication)

 
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