Nepse sees modest drop

KATHMANDU, July 27: The Nepal Stock Exchange (Nepse) index started the day on a higher note in the first trading hour on Thursday. However, the benchmark index declined throughout the latter session to close 3.15 points lower. The stock market index ended the week at 1,191.20 points.

Investors still seem to be in a state of indecision to enter the market. Hence, total turnover remained below the 200-million-rupee mark. Shares worth Rs 193 million were traded in the secondary market on Thursday.

Most of the sectoral indices finished the day in red. Substantial weakness was visible among Hydropower stocks, dragging its sub-Index down 1.02 percent. Microfinance, Life Insurance, Non-life Insurance and Finance sub-indices also finished lower. Only the Hydropower sub0-index finished the day in green, gaining 2.47 percent. The sub-index of Manufacturing & Processing group remained unchanged.

Nabil Bank Ltd was the most actively traded stock on Thursday with total transaction of over Rs 11 million. Stocks of Nepal Life Insurance Company Ltd followed suit, logging turnover of more than Rs 8 million. Forward Community Microfinance Bittiya Sanstha Ltd, Nepal Investment Bank Ltd Promoter Shares and NMB Bank Ltd were the other active stocks of the day.

Janaki Finance Ltd was the biggest gainer of the day as its share price rose over 5 percent. Next on the list was Arambha Microfinance Bittiya Sanstha Ltd as its share price surged 4.89 percent. Similarly, Nepal Hydro Developers Ltd, Swadeshi Laghubitta Bittiya Sanstha Ltd and Soaltee Hotel Ltd were the other gaining stocks of the day.

Conversely, Kankai Bikas Bank Ltd was under pressure as its share price dropped by around 5 percent.

Likewise, share prices of Swarojgar Laghubitta Bikas Bank Ltd, NMB Hybrid Fund-1, Progressive Finance Ltd, Best Finance Company Ltd and RSDC Laghubitta Bikas Bank Ltd fell by over 3 percent each.

On announcements, NMB Bank Ltd has scheduled its Annual General Meeting for August 16. Its main agenda include distribution of 15 percent bonus shares to its shareholders. In earnings front, Mahalaxmi Bikas Bank Ltd has published its financial report for the fourth quarter of Fiscal Year 2017/18, posting a 26.31 percent growth on its net profit year-on-year to Rs 561 million.

Further, Pokhara Finance Ltd has reported a 4.09 percent increase in net profit compared to previous year. Its net profit stands at Rs 91 million.

ARKS technical analysis indicates the market extending losses for a second straight day with a bearish candlestick formation on Thursday’s session. Subsequently, the index has failed to close above 1,200-point mark for seven consecutive sessions and has remained range-bound, indicating consolidation at the current range. Relative Strength Index (RSI) indicates that the index is still trending near the oversold zone while Moving Average Convergence/Divergence (MACD) has persisted in the negative territory. Hence, a strong direction in the equity market is yet to be 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)