KATHMANDU, Aug 20: After gaining almost 30 points last week, the benchmark Nepal Stock Exchange (Nepse) Index pulled back on the first trading day of the week, losing over 14 points. Despite remaining unchanged for the first half an hour of the day's trading, stocks came under pressure throughout the remaining session. At the close, the index settled at 1,196.29 points.
The decline on the day came on the heels of profit booking witnessed in the bourse following four straight days of gains. As a result, the Nepse index fell below 1,200 points. The moderate sell off witnessed in the bourse was also accompanied by a decline in daily turnover by almost 30 percent to Rs 325 million.
Reflecting the movement of the broader market, all major sub-indices closed the day in red. The broad slump was led by Non-life Insurance stocks as its sub-index tumbled 1.73 percent. Microfinance and Development Bank scrips also came under pressure as their respective sub-indices fell 1.53 percent and 1.42 percent. Sub-indices of Hotels, Banking and Life Insurance segments also dropped over 1 percent each.
Nepse snaps four-week losing run
Shares of Grameen Bikas Laghubitta Bittiya Sanstha Ltd led the list of active stocks as more than Rs 32 million worth of its shares were traded on the day. The microfinance institution is holding its annual general meeting (AGM) on September 21 and 50 percent rights issue as one of its main agendas. Similarly, Om Development Bank's shares worth Rs 25 million changed hands on Sunday. Other commercial banking scrips including Nabil Bank Ltd Promoter Share, Nepal Investment Bank Promoter Share and Nabil Bank Ltd followed suit.
Khani Khola Hydropower Company Ltd's shares turned in the best performance of the day as its share price went up by 5.71 percent. Further, shares of Swarojgar Laghubitta Bikas Bank Ltd were up over 3 percent. The micro sector lender announced 20 percent bonus shares to its shareholders on Friday. Grameen Bikas Laghubitta Bittiya Sanstha Ltd's shares also added 2.10 percent on the day. Mutual fund unit of NMB Sulav Investment Fund-1 and promoter share of Rastriya Beema Company Ltd both gained 1.96 percent each.
Conversely, Nagbeli Laghubitta Bikas Bank Ltd was the biggest loser on Sunday's session as its share price tumbled by 5.37 percent. Next on the list of losing stocks was ICFC Finance Ltd which saw its share price go down by over 5 percent after the finance company declared 8 percent cash dividend to its shareholders on Friday. Furthermore, shares of Shine Resunga Development Bank Ltd, Lumbini Bikas Bank Ltd and Jalabidyut Lagani Tatha Bikas Co Ltd fell over 4 percent each.
Among companies publishing their earnings reports of the fourth quarter on Sunday, Premier Insurance Company Ltd reported a 7.51 percent decline in its net profit to Rs 167 million. Similarly, Lalitpur Finance Ltd also presented a notable decline of 38 percent year-on-year in its earnings as per its unaudited quarterly report.
ARKS technical analysis indicates the index retracing back below 1,200 points level. Hence, the index has failed to maintain above the aforementioned crucial line. However, with the index still trading in the consolidation zone of around 1,200-points, a breakout toward either side with significant volume 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)
