KATHMANDU, June 19: The equity market maintained negative bias for most of the trading session on Monday. However, with a sharp pull back in the last trading hour, the index managed to finish faintly higher. The index gained 1.92 points or 0.16 percent to close at 1,235.15 points. Nonetheless, the gain came in the heels of a month low turnover of Rs. 199 million.
Following the uncertainty seen among investors in the stock market lately, the index has traded range bound for the last 7 trading days. In each of the sessions, the index has closed between the 1,230 point and 1,250 point marks. This indicates the market is lacking any movement of significant magnitude that can suggest a particular direction for the market in the near term.
Following the low index movement, major sub-indices turned in a mixed performance. The Sub-Index of Others sub-group was the best performing index of the day with a rise of 0.74 percent. The Sub-Indices of Hydropower, Microfinance, Insurance and Hotels sector also ended the day in green. Meanwhile, weakness was visible among banking and financial institution stocks as Banking, Development Bank and Finance Sub-Indices ended the day lower.
Shares of Nepal Bank Ltd and NMB Bank Ltd led the list of active stocks for the day as the banks recorded turnovers of Rs. 13 million and Rs. 11 million, respectively. Nepal Bank Ltd is set to issue its Further Public Offering (FPO) within short order, while NMB Bank Ltd's FPO is currently taking place. Among others, shares of Sana Kisan Bikas Bank Ltd, Nepal Life Insurance Ltd (Promoter Share) and Prabhu Bank experienced high turnovers.
Stocks of Samata Microfinance Bittiya Sanstha Ltd and Nepal Hydro Developers Ltd were the biggest gainers with a rally of over 9 percent each. Neco Insurance Ltd, Civil Laghubitta Bittiya Sanstha Ltd, and Garima Bikas bank Ltd followed suit.
Conversely, the biggest losing stock was Radhi Bidyut Company Ltd as it corrected almost 10 percent. Further, shares of Khani Khola Hydropower Co Ltd, National Hydropower Company Ltd, and Shine Resunga Development Bank Ltd shed over 3 percent each.
In the corporate news, NMB Bank Ltd has opened its FPO for the institutional investors from Monday. Theissue, which was opened for individual investors only for the first 4 days, was notably undersubscribed till Sunday.
As per the ARKS technical analysis, the market formed a small bullish candle as the market rebounded off its intra-day low of 1,221.92 points to close marginally higher. Subsequently, the market is trending sideways for short term. Major technical indicators like Relative Strength Index (RSI) and Moving Average Convergence/ Divergence (MACD) show a lack of any substantial impetus that can direct the market currently. In the current juncture, investors are suggested to stay watchful before entering transactions in the secondary market.
This column is produced by ARKS Capital Advisors Ltd www.arkscapitaladvisors.com
(Views expressed in the article are those of the producer and do not necessarily reflect those of this publication)