Daily market commentary

Nepse posts gain for fifth straight day

Published On: December 10, 2019 08:45 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU: The benchmark Nepal Stock Exchange (Nepse) index continued to see strength in Monday trading session and reached at 1,154 points towards the final session. However,the stocks pulled back meagerly in closing minutes but still managed to trade in green zone. At the end, Nepse close higher by 13.51 points at 1,148.89 points.

Following the day's gain, the index has managed to closed higher for a fifth straight day with notable turnovers. Active participation was witnessed in the exchanged as the market posted a turnover of over Rs. 464 million. 

Most of the sectors ended on the upper side except 'Other' sub-index which fell 0.11%. Non-Life Insurance, Trading and Microfinance sub-index jumped 3.81%, 3.61% and 3.23% respectively. Development Bank, Hydropower, Finance, Manufacturing & Processing and Life Insurance stocks rallied above 1% each. Meanwhile, Banking & Hotels scrips edged higher.

Among actives, shares of Nepal Bank Ltd witnessed the highest turnover on the day. More than Rs. 23 million worth of the commercial bank's shares changed hands. NMB Bank Ltd, Deprosc Laghubitta Bittiya Sanstha Ltd, Swabalamban Laghubitta Bittiya Sanstha Ltd and Himalayan Distillery Ltd registered turnovers of Rs. 19 million, 17 million, 16 million,and 12 million correspondingly.  

Microfinance stocks led the list of gainers. Summit Laghubitta Bittiya Sanstha Ltd and Nadep Laghubitta Bittiya Sanstha Ltd's stocks hit the upper circuit of 10% each.  3 micro finance companies rallied above 9% on the day including Nepal Seva Laghubitta Bittiya Sanstha Ltd, Samata Microfinance Bittiya Sanstha Ltd and Mithila Laghubitta Bittiya Sanstha Ltd while Ankhu Khola Laghubitta Bittiya Sanstha Ltd surged 8.71% on Monday.

On the other hand, Nabil Equity Fund and Civil Bank Ltd shed 5.74% and 2.14% respectively. Additionally, Mutual Fund suffered losses above 1% each including NIC Asia Balanced Fund, Global IME Samunnat Scheme 1, Siddhartha Equity Fund and Sanima Equity Fund. 

On the announcement, Kamana Sewa Bikas Bank Ltd has published notices regarding its Annual General Meeting. The company will be convening its AGM on January 2, 2020 and it has also endorsed 6.8% cash dividend to its shareholders. Likewise, Butwal Power Company Ltd has proposed 10% bonus shares and 18% cash dividend for the shareholders. However, this decision is subject to approval from the upcoming AGM of the company. Vijaya Laghubitta Bittiya Sanstha Ltd has revised its dividend and declared to distribute 15% bonus shares and 5% cash dividend to its shareholders from the profit of FY 2018/19. This decision is yet to get approval from the NRB. Earlier, the company had decided to distributed 10% bonus shares and 10% cash dividend.

As per the ARKS technical analysis, the market formed a bullish candlestick for a fifth day in a row and the rally is also supported by substantial volume in the secondary market. Nonetheless, the market failed to close above its psychological resistance of 1,150 points on Monday. Hence, investors are better off taking a cautious position in the present context unless a momentous break out above the level is observed.

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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