daily market commentary

Nepse gains 12 points

November 6, 2018 08:38 AM


KATHMANDU, Nov 6: The benchmark snapped losing run and posted gains of 11.92 points to close at 1,219.20 on Monday. The benchmark index logged gains despite trading flat in the morning session.

With Monday's gain, Nepse recouped most of its previous day's losses. However, market activity remained subdued as investors showed muted enthusiasm. As a result, the bourse recorded a sub-par turnover of Rs 244 million. 

On sectoral front, Hotels stocks led the day's broad rally as the group's sub-index jumped by over 2 percent. Non-life Insurance and Microfinance stocks also posted significant gains, adding 1.58 percent and 1.26 percent, respectively. Meanwhile, the heavyweight Banking sub-index gained 1.08 percent. Further, sub-indices of Development Bank and Life Insurance groups went up by almost 1 percent. All other sub-indices posted gains on Monday.

Shares of Prabhu Bank Ltd continued to trade actively in the secondary market. The 'A' class bank's scrips posted a turnover of over Rs 41 million. Next on the list was Nepal Telecom Company which logged turnover of over Rs 20 million. Further, NIC Asia Bank Ltd, Janata Bank Nepal Ltd and Nepal Bank Ltd logged total transactions of Rs 15 million, Rs 12 million and Rs 9 million, respectively.

Micro sector lender dominated the list of advances on Monday. Share price of Laxmi Laghubitta Bittiya Sanstha Ltd rallied by 6 percent. Similarly, share price of Global IME Laghubitta Bittiya Sanstha Ltd surged by 5.71 percent, while Nadep Laghubitta Bittiya Sanstha saw its share price go up by 5.04 percent. Arun Valley Hydropower Development Company Ltd posted a gain of over 4 percent, while Sahayogi Bikas Bank Ltd, United Insurance Company Ltd and Sindhu Bikash Bank Ltd were the other top gainers of the day.

In contrast, share price of Shrijana Finance Ltd and Arun Kabeli Power Ltd fell down by 2 percent each. Hathway Finance Company Ltd also closed 1.78 percent lower. Other top losing scrips include Everest Insurance Company Ltd, Kalika Power Company Ltd and Excel Development Bank Ltd.

On news, Upper Tamakoshi Hydropower Ltd closed its Initial Public Offering (IPO) of over 15 million units of shares. The company is currently building the biggest hydropower project in the country with capacity of 456 megawatt. 

Of the companies publishing their earnings report, Siddhartha Bank Ltd reported a 43.10 percent growth in its net profit year-on-year. According to the bank's financial statement for the first quarter of 
Fiscal Year 2018/19, its net profit stands at Rs 525 million. Likewise, Muktinath Bikas Bank has Ltd posted net profit of Rs 200 million, up by 47.94 percent compared to corresponding quarter in the previous fiscal year. 

ARKS technical analysis indicates the market forming a bullish candlestick on the daily timeframe. Despite the gain seen in the equity market, the market is yet to show a noteworthy positive shift in momentum as reflected by technical indicators. On a positive note, the psychological support at around 1,200-point level has held its ground. Nonetheless, cautious trading is suggested in the present context.


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