Daily market commentary

Nepse slips for second straight day

Published On: June 4, 2019 10:45 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU: Stocks faltered since the beginning of Monday's trading session with the Nepal Stock Exchange (Nepse) index shedding more than 5 points in the first hour. The benchmark index fall further below 1,300-point mark at midday. Eventually, Nepse closed the day 12.84 points lower at 1292.84 points. 

Following the index, selling pressure was witnessed in all traded sectors. Hence, the trading day was marked by a broad decline in the secondary market. Subsequently, market participation dropped on the day as the bourse recorded turnover of Rs 698 million only. 

All the sub-indices closed the day in red. Manufacturing & Processing stocks saw significant weakness as the group's sub-index tanked 1.96%. Similarly, Hydropower, Mutual Fund, Non-Life Insurance, Hotel and Trading sub-indices were also down by 1.52%, 1.45%, 1.17%, 1.12%, and 1.03%, respectively. Similarly, Banking, Life Insurance, Development Bank, Finance and Micro Finance sub-indices logged minor losses.

NIC Asia Bank Ltd witnessed the highest turnover on the day as more than Rs 90 million worth of shares of the commercial banks changed hands. Next on the list were Shivam Cements Ltd and Prabhu Bank Ltd with over Rs 60 million and Rs 50 million worth of shares traded, respectively. 

Similarly, Nepal Bank Ltd, Premier Insurance Company Ltd, Upper Tamakoshi Hydropower Company Ltd and Taragaon Regency Hotel Ltd witnessed turnover of over Rs 30 million each. Shares of Agriculture Development Bank Ltd, Nepal Credit & Commercial Bank Ltd and Nabil Bank Ltd Promoter Share were also actively traded in the secondary market on Monday.

 Taragaon Regency Hotel Ltd led the list of gainers as it share price went up by 7.5%. Gurans Laghubitta Bittiya Sanstha Ltd and Kankai Bikas Bank Ltd also saw their respective share prices rally by 4.66% and 4.49%. Stocks of Reliance Finance Ltd and Multipurpose Finance Company Ltd posted gains of over 3% each. Sidhu Bikas Bank Ltd, Karnali Development Bank Ltd, Himalayan Urja Development Bank Ltd and Rairang Hydropower Company Ltd were among other advances of the day. 

In contrast, Panchthar Power Company Ltd turned in the worst performance of the day as its share price tanked 9.52%.

Similarly, share prices of Corporate Development Bank Ltd, World Merchant Banking & Finance Ltd, Mountain Hydro Nepal Ltd, Sparsha Laghubitta Bittiya Sanstha Ltd and Kalika Power Company Ltd were also down by over 5% each. Other top losing stocks include Oriental Hotels Ltd, Best Finance Company Ltd and Summit Laghubitta Bittiya Sanstha Ltd.

ARKS technical analysis indicates the market forming a bearish candlestick on the daily timeframe by continuing the selling dominance in the market. Likewise, technical indicators also show the bears momentum in the secondary market. 

Hence, further downfall can be expected in the short run with the support lying at around 1,250 points.

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)

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