November 11, 2019 10:24 AM NPT
KATHMANDU: The market got off to a positive start in the beginning of Sunday's trading. However, the market failed to maintain its level and begin to trade on a flat note. Eventually, the benchmark Nepal Stock Exchange (Nepse) index ended the day with a minor drop of 0.18 points at 1131.80 points.
Investors continue to take a cautious stance with the index stretching its sideways movement. Volume continued to remain on the lower side of the spectrum as the bourse witnessed total turnover of Rs 293 million.
Most of the sectors ended the day lower following the broader market, while few managed to eke out marginal gains. Others, Manufacturing & Processing, Microfinance, Finance and Non-Life Insurance sectors ended the day in green. Conversely, Mutual Fund sector suffered with a 1.15 % decline in the group's sub-index. Sub-indices of Hotels, Life Insurance, Hydropower, Development Bank and Banking ended in a negative territory, logging marginal losses.
NMB Bank Ltd led the list of companies in terms of turnover with Rs 57 million worth of shares traded, followed by Prabhu Bank Ltd and Nepal Bank Ltd with respective turnovers of Rs 27 million and Rs 21 million. Likewise, Machhapuchhre Bank Ltd and NIC Asia Bank Ltd registered turnovers of Rs 11 million and Rs 10 million, respectively. Similarly, Nabil Bank Ltd and Chilime Hydropower Company Ltd saw transactions of over Rs 7 million each. Other active scrips of the day include Chhimek Laghubitta Bittiya Sanstha Ltd, Agriculture Development Bank Ltd and Sanjen Jalabidhyut Company Ltd.
Support Microfinance Bittiya Sanstha Ltd was the best performer of the day as its share price rallied 4.46% on the first trading day of the week. The microfinance company has proposed to distribute 10.52% dividend for its shareholders from the profit earned in FY2019/20. The proposal is subject to approval of the Nepal Rastra Bank and the upcoming annual general meeting (AGM) of the lender. Next, Union Hydropower Ltd and Khanikhola Hydropower Co Ltd also added 3.85% and 3.7%, respectively, on their share prices. Swadeshi Laghubitta Bittiya Sanstha Ltd, Gurkhas Finance Ltd, Vijaya Laghubitta Bittiya Sanstha Ltd, NMB Bank Ltd also saw their share prices go up by over 2% each.
On the other hand, Rairang Hydropower Development Company Ltd was the biggest loser of the day as its share price tanked 4.8%. Subsequently, share prices of Taragaon Regency Hotel Ltd, Sindhu Bikas Bank Ltd, Panchthar Power Company Ltd and Arun Kabeli Power Ltd gave up at least 3% each on Sunday.
In corporate space, Vijaya Laghubitta Bittiya Sanstha Ltd has declared 10% cash dividend and 10% bonus shares for its shareholders from the profits of FY2019/20. The proposal is subject to approval of the Nepal Rastra Bank and the company's upcoming AGM.
As per ARKS technical analysis, the market formed a fourth bearish candlestick in a row with a range bound trading. So, the current plan would still be to take a wait and watch stance, unless a breach of 1,150-point resistance is observed which might make way for bulls to drive the market higher.
This column is produced by ARKS Capital Advisors Ltd
(Views expressed are those of the producer and do not necessarily reflect those of this publication)