Daily Market Commentary

Nepse posts modest gain on volatile day

Published On: September 19, 2018 04:45 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Sept 19: Benchmark Nepal Stock Exchange (Nepse) index witnessed a volatile trading session on Tuesday. The index, which added almost 5 points in the initial trading, pared its gains and traded more than 4 points lower mid-day. Further, the index fluctuated throughout the remaining session to eventually closed 2.41 points higher to settle at 1,258.81 points.

After ending slightly lower in the previous day, the index edged higher on Tuesday to reach near a three-month high. Despite the market ending flat in the previous session, overall sentiment still seem to favor the bulls. Meanwhile, market activity lowered by 32.10 percent to Rs 467 million.

In terms of sectoral performance, sub-indices showed mixed results on Tuesday. Hotel stocks came under pressure as the group's sub-index fell by 1.37 percent. Further, sub-indices of Finance and Banking groups also posted modest losses on the day, while Trading sub-index remained unchanged. Among the sub-indices ending in green, Hydropower sub-index posted the biggest gain of over 3 percent. Non-life Insurance sub-index also rose 1.22 percent. Further, Microfinance, Manufacturing & Processing, and Life Insurance sub-indices also edged higher.

Neco Insurance Company Ltd registered the highest turnover of Rs 34 million on Tuesday. Next on the list was NMB Bank Ltd with Rs 24 million worth of shares traded. Further, Prime Life Insurance Company Ltd, NIC Asia Bank Ltd and Nepal Insurance Company Ltd logged turnovers of Rs 17 million, Rs 16 million and Rs 12 million, respectively. Besides, shares of Premier Insurance Company Ltd and Sanima Mai Hydropower Ltd were also actively traded on the day.

Shares of Arun Kabeli Power Ltd led the list of advances with a surge of almost 10 percent. Bhargav Bikas Bank Ltd rallied for the third day in a row posting a gain of over 9 percent. Similarly, Himal Power Partner Ltd and Api Power Company Ltd also added 7.14 percent and 6.80 percent, respectively, on their share prices. Share prices of National Hydropower Company Ltd and Sanima Mai Hydropower Ltd also increased by about 5 percent each.

Hathway Finance Company Ltd was the worst performer of the day as its share price plunged by almost 5 percent. Share price of Vijay Laghubitta Bittiya Sanstha Ltd also depreciated by 3.13 percent. Additionally, Mega Bank Ltd, Kankai Bikas Bank Ltd and United Modi Hydropower Ltd saw their share prices fall by around 3 percent each. Shree Investment Finance Company Ltd and Garima Bikas Bank Ltd were among other top losers of the day.

In corporate space, Guheswori Merchant Banking and Finance Ltd has declared 5.23 percent cash dividend to its shareholders. Its share price dropped 2.33 percent to Rs 126 on Tuesday.

ARKS technical analysis indicates the market slightly losing its momentum following a rally in the past weeks. The index is trading close to its resistance of 1,270 points at present. Hence, the index is likely to reach 1,300 points if a breakout above this level is observed with substantial market activity.

Leave A Comment