Daily Market Commentary

Nepse snaps 3-day losing run, gains 7 points

Published On: September 12, 2018 05:00 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Sept 12: Stocks traded flat in the initial trading hour on Tuesday. A midday surge followed, leading the Nepal Stock Exchange (Nepse) index to an intra-day high of 1,224.60 points, up more than 13 points. However, the index trimmed some of its gains to close the day 6.77 points higher at 1,217.65 points.

With the gain seen on the day, Nepse ended in green after three straight days of losses. After profit booking witnessed in the previous sessions, investors' sentiment seemed slightly sanguine on Tuesday. Market activity also improved as total turnover increased to Rs 334 million, compared to Monday's Rs 277 million.

Majority of key sub-indices, except Non-life Insurance and Finance groups which was saw their sub-indices fall by 1.12 percent and 0.04 percent, respectively, gained value on Tuesday. Hotel stocks were the forerunners as the sector's sub-index rose 2.71 percent. Manufacturing & Processing, and Development Bank sub-indices also gained over 1 percent each. Similarly, Microfinance and Banking stocks also ended in green.

Among active stocks, NIC Asia Bank Ltd posted the highest turnover of over Rs 27 million. Similarly, shares worth Rs 22 million of Kumari Bank Ltd were traded on the day. NMB Bank Ltd and Rastriya Beema Company Ltd Promoter Share also made it to the list of active stocks with turnovers of Rs 15 million and 13 million, respectively. Besides, Deva Bikas Bank Ltd, Nepal Bank Ltd and Rastriya Beema Company Ltd posted turnovers of over Rs 10 million each.

Kisan Microfinance Bittiya Sanstha Ltd was the day's top gaining stock as its share price rallied 10 percent on Tuesday. Kisan Microfinance Bittiya Sanstha Ltd has proposed 29 percent bonus shares to its shareholders. After the issue, the paid-up capital of the microfinance institution will reach Rs 61 million. Share price of Suryodaya Laghubitta Bittiya Sanstha Ltd also went up by 6.31 percent. Shares of Unnati Microfinance Bittiya Sanstha Ltd and Mithila Laghubitta Bittiya Sanstha Ltd also logged gains of over 5 percent each. ICFC Finance Ltd, United Insurance Company Nepal Ltd and Siddhartha Insurance Ltd were the other active stocks of the day.

In contrast, Rastriya Beema Company Ltd Promoter Share and Rastriya Beema Company Ltd were the worst performers of the day as their share prices tumbled by over 7 percent each. The insurer has scheduled its annual general meeting (AGM) on October 5. However, it has not proposed any dividend from its net profit for Fiscal Year 17/18. Further, shares of Nepal Hydro Developers Ltd also dropped over 5 percent. Other losing stocks include Central Finance Company Ltd, Arambha Microfinance Bittiya Sanstha Ltd and Everest Insurance Company Ltd.

On corporate front, Garima Bikas Bank Ltd has announced 13.75 percent dividend -- 10 percent bonus shares and 3.75 percent cash payout -- to its shareholders.

As per the ARKS technical analysis, the Nepse index managed to recover some of its previous session's losses with a formation of a bullish candlestick on the day. Consequently, the index managed to hold its ground above 1,200 points level. Meanwhile, technical indicators also suggest the market favoring bulls at present. The immediate support lies at 1,200 points level.

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)

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