KATHMANDU, Aug 7: The stock market opened on a positive note on Monday but failed to hold gains as the benchmark Nepal Stock Exchange (Nepse) index started to decline after mid-day trading. Overall, the stock index remained flat throughout the remaining session before shedding a meager 0.02 percent to close at 1,189.67 points.

Nepse continued its bearish trend which has been observed in the market for the last few months. Total turnover, however, increased by 14.79 percent to Rs 191 million. However, total turnover was still below the average mark of Rs 200 million as investors remained passive in terms of entering into noteworthy transactions.

Most of the sector ended in the green on the day with maximum gains coming from Trading sector. Trading sub-index was up by 1.07 percent. Similarly, Microfinance sub-index climbed 0.42 percent followed by Finance sub-index which gained 0.19 percent.

Banking sub-index also closed the session higher by 0.12 percent. Meanwhile, sub-indices of Others, Development Bank, Hotels and Life Insurance sectors closed the day in negative territory, posting a slight loss.

In terms of market activity, shares of Progressive Finance Ltd Promoter Share recorded the highest turnover of Rs 24 million. Further, Chimmek Laghubitta Bikas Bank Ltd and Progressive Finance Ltd posted turnovers of over Rs 9 million each. Other companies logging top turnover include Nepal Life Insurance Company Ltd, Nepal Investment Bank Ltd Promoter Share, Nabil Bank Ltd and Sanima Mai Hydropower Ltd.

Support Microfinance Bittiya Sanstha Ltd led the gaining side, as its share price was up 9.96 percent compared to Sunday. Next on the list was Nepal Credit and Commerce Bank Ltd whose share price surged by 8.33 percent. Similarly, stocks of Ridi Hydropower Development Company Ltd, Chimmek Laghubitta Bikas Bank Ltd, Salt Trading Corporation and Swarojgar Laghubitta Bikas Bank Ltd also added around 3 percent each on their share prices.

On the other hand, Multipurpose Finance Company Ltd was the worst performer of the day as the company's share price slid by 8.63 percent. On Monday, the finance company presented a slight decrement in its net profit as per its financial report for the fourth quarter of Fiscal Year 2017/18. Likewise, share price of City Express Company Ltd and Naya Nepal Laghubitta Bikas Bank Ltd plunged over 3 percent each. Among others, Suryodaya Laghubitta Bikas Bank Ltd, Hathway Finance Company Ltd and United Modi Hydropower Company Ltd also shed values.

In terms of earnings, Siddhartha Bank Ltd reported a growth of 19.99 percent in its net profit for the fourth quarter of FY2017/18. Similarly, Suryodaya Laghubitta Bikas Bank Ltd posted a meager decline in its net profit. Furthermore, Chhimek Laghubitta Bikas Bank Ltd reported a 15 percent year-on-year rise in its net profit.

ARKS technical analysis model shows a doji candlestick formation on Monday, suggesting indecision in the market. Besides, the index is still trading range bound within 1,180 –1,200 points level. A breakout from this range with significant market activity can show a possible direction for the equity market.

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)