November 19, 2018 10:41 AM NPT
KATHMANDU: Stocks came under pressure in the first trading day of the week as the benchmark Nepal Stock Exchange (Nepse) index dropped more than 11 points in the beginning hour. Weakness continued in the remaining trading hours with the index closing at 1,194.87 points, down 10.14 points compared to the session earlier.
Even though the index showed a decline, stocks worth Rs 333 million were traded on the day. Most of the major sectors, except the Trading sub-group which rose by 0.35 percent, ended the day lower. Hydropower stocks suffered the most at its sub-index dropped almost 1 percent. Banking and Others sub-Index also fell by 0.96 percent each on the day. Moreover, the sub-indices of Life Insurance, Microfinance, Finance, Development Bank and Non-life Insurance also closed lower.
In terms of stock-wise turnovers, Nepal Bank Ltd led the pack with Rs 140 million worth of shares traded. NIC Asia Ltd and Prabhu Bank Ltd came second and third on the list, logging total transactions of Rs 29 million and Rs 11 million, respectively. Similarly, Nepal Life Insurance Company Ltd and Kumari Bank Ltd also logged transactions of Rs 5 million each. Surya Life Insurance Company Ltd Promoters Share, Nepal Credit and Commercial Bank Ltd and Chilime Hydropower Company Ltd were the other active stocks of the day.
In terms of gainers, Panchakanya Mai Hydropower Company Ltd advanced the most, adding 2.44 percent to its share price. Share price of Everest Insurance Company Ltd, Nepal Insurance Company Ltd, Nepal Hydro Developers Ltd and Nepal Community Development Bank Ltd also jumped by over 1 percent each. On the flip side, Samata Microfinance Bittiya Sanstha Ltd recorded the worst performance of the day as its share price tanked by over 8 percent. Next on the list were Support Microfinance Bittiya Sanstha Ltd and Radhi Bidhyut Company Ltd which saw their share prices slide by over 5 percent each. Arun Valley Hydropower Development Company Ltd, Mahuli Samudayik Laghubitta Bittiya Sanstha Ltd and ICFC Finance Ltd were the other losing stocks of the day.
As per the announcements, NMB Microfinance Bittiya Sanstha Ltd has declared 15 percent bonus shares for its shareholders. The issue, however, is subject to approval from the Nepal Rastra Bank and upcoming annual general body meeting of the company. On earnings front, Rastriya Beema Sansthan has published its earnings report for the first quarter of Fiscal Year 2018/19, posting a net profit of Rs 4 million. Hydropower companies, including Kalika Power Company Ltd, Arun Kabeli Power Ltd and Nepal Hydro Developer Ltd, also reported a growth in their respective net profits.
ARKS technical analysis indicates the market extending losses with a bearish candlestick formation. Subsequently, the index has failed to close above the psychological level of 1,200-point mark. Hence, a strong decisive direction in the equity market is yet to be observed.
This column is produced by ARKS Capital Advisors Ltd
(Views expressed are those of the producer and do not necessarily reflect those of this publication)