KATHMANDU, Sep1 : Nepal Stock Exchange (Nepse) Index started the week on a fragile note adding to the previous week's sell off as Sunday was marked by a marginal loss of 2.78 points. The market remained closed on Monday.
The index recorded a slight gain of 1.47 points on Tuesday only to surrender 4.79 points on Wednesday. Nonetheless, the final trading session of the week saw the index recoup all its losses gaining 9.39 points on the day. Consequently, the index closed the week at 1,181.69 points -- a rise of 3.19 points or 0.27 percent compared to the previous week's close.
The index slumped almost 32 percent as investors resorted to profit booking in the previous week. Consolidation followed this week as the index traded was range-bound between 1,175 points and 1,182 points. Further, market activity also subdued in the review period as the daily average turnover remained just above Rs 200 million mark.
Class 'A' stocks based sensitive index also reflected the broader market and added 0.8 percent on week-to-week basis. Besides, sub-indices turned in mixed performance in the review period. Non-Life Insurance stocks gained the most with its sub-index advancing 0.82 percent.
Meanwhile, heavyweight banks' segment also witnessed strength as its sub-index rose 0.74 percent. Hotels sub-index also closed 0.42 percent higher. On the other hand, Life Insurance sub-index suffered the most and slumped 0.81 percent. Likewise, sub-indices of Hydropower, Microfinance and 'Others' stocks also ended in the negative territory.
In terms of market activity, Nepal Investment Bank Ltd Promoter Share posted the highest turnover of over Rs 73 million. Shares of Nepal Life Insurance Company Ltd and NMB Bank Ltd followed suit with total transactions of over RS 44 million and Rs 40 million respectively. Further, NIC Asia Bank Ltd and NLG Insurance Company Ltd's scrips were also actively traded this week.
Among companies declaring dividends, Mahalaxmi Bikas Bank Ltd announced 15 percent dividend to its shareholders. The payout includes 7 percent cash dividend and 8 percent bonus share issuance. The class 'B' bank's paid up capital will reach Rs 2.84 billion after the capitalization.
Similarly, Hamro Bikas Bank Ltd, which is in its course for merger with Jyoti Bikas Bank Ltd, announced 10.3145 percent dividend to its shareholder. While 7.9145 percent will be distributed as cash dividend, the remaining 2.40 percent will be endorsed as bonus shares.
ARKS technical analysis model indicates the index continuing its lackluster trading within a finite range. A series of low volume trading sessions since the last few months also indicates lack of conviction in the bourse lately. Technical indicators are yet to show a positive shift in the momentum. Hence, the market is more likely to add on to the series of bland sessions unless the market witnesses a substantial breakout from the current consolidation range of 1,163 points to 1,224 points mark.
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)