Daily Market Commentary

Nepse posts modest gains

Published On: April 11, 2019 05:00 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU, April 11: The secondary market witnessed a choppy session throughout Wednesday. After trading flat initially, the index went down marginally in the afternoon. However, a surge toward the close saw the Nepal Stock Exchange (Nepse) index recoup its losses and end the day with a modest gain of 3.52 points at 1,184.61 points.

After a brief correction on Tuesday, Nepse clawed back some of its previous day losses on Wednesday. Besides, the index also cut its losses short as the index held its ground above the 1,180-point level. However, some indecision still prevails in the market following the rally seen in previous weeks. Market activity fell slightly as the bourse saw total turnover of only Rs 410 million on the day.

Sub-indices of all major sectors, except Hydropower group which fell by 0.47 percent, ended the day higher. 'Others' group saw the biggest gainer of its sub-index climbed up by 0.96 percent. Similarly, Finance and Non-Life Insurance sub-indices advanced by 0.51 percent and 0.45 percent, respectively. Besides, all other sub-indices witnessed some strength in the day's trading.

Kumari Bank Ltd was the most actively traded stock of the day. More than Rs 57 million worth of the commercial bank's shares changed hands on the day. The bank is holding its 17th and 18th Annual General Meeting for fiscal years 2016/17 and 2017/18 on May 9. Endorsement of 12.75 percent and 8.5 percent bonus shares for the respective years, among others, is the key agenda of the meetings. NIC Asia Bank Ltd and NMB Bank Ltd also witnessed active participation with turnover of Rs 29 million and Rs 25 million, respectively. Next, National Life Insurance Company Ltd, Nepal Credit and Commercial Bank Ltd and Prabhu Bank Ltd also logged turnover of over Rs 11 million.

Among gainers, share price of Nepal Community Development Bank Ltd went up by 5 percent. First Microfinance Laghubitta Bittiya Sanstha Ltd, Reliance Finance Ltd and NMB Microfinance Bittiya Sanstha Ltd also saw their respective share prices go up by over 3 percent each. Share prices of Panchakanya Mai Hydropower Ltd, Gurkhas Finance Ltd and Century Commercial Bank Ltd followed also appreciated on the day.

Conversely, Unnati Microfinance Bittiya Sanstha Ltd suffered the most as its share price fell by 5.55 percent. Share price of Ghalemdi Hydro Ltd was also down by 4.7 percent. Additionally, share prices of Sindhu Bikash Bank Ltd, Taragaon Regency Hotel Ltd and Mahuli Samudayik Laghubitta Bittiya Sanstha posted loss of over 3 percent each.

Nepal Bank Ltd is holding its 59th Annual General meeting (AGM) on May 5. Endorsement of audited financial statements, appointment of auditor for the current fiscal year and appointment of two directors from ordinary shareholders are among the agendas of the meeting.

As per the ARKS technical analysis, the market formed a spinning top bullish candlestick on the day. This means that the market lacks conviction in the present scenario. Nonetheless, the index has managed to close above the previous day's close suggesting some strength still prevailing in the secondary market. A breakout from its previous high at around 1,190 points might see the index climb to the crucial 1,200-point mark.

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