Daily Market Commentary

Nepse snaps six-day gaining streak

Published On: March 14, 2019 04:00 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Mar 14: Nepal Stock Exchange (Nepse) index snapped six-day winning run as it shed 13.16 points on Wednesday. The benchmark index had shed 8 points in the opening hour. Despite paring all its losses by noon, the index came under pressure in the latter trading hours to close at 1,150.10 points.

The dip seen in the day can be taken as a retracement after the extended gaining run. The index is still trading firmly higher – up 50 points compared to last week when the benchmark index had fallen to 1,100 points. Hence, the overall sentiment still remains bullish albeit for the short run. Stocks worth

Rs 428 million changed hands on the day.

All major sub-indices, except Finance sub-index which closed 0.45 percent higher, witnessed correction on the day. Among sectors trading in red, Hotels sub-index sank the most, losing 2.42 percent. Significant losses also came from Manufacturing & Processing and Hydropower stocks with their respective sub-indices losing 1.91 percent and 1.77 percent, respectively. Non-Life Insurance, Microfinance and Life Insurance sub-indices also logged loss of over 1 percent each. Banking sub-index was also down by 1.05 percent.

Shares of Nepal Credit and Commercial Bank were traded actively on the day as Rs 21 million worth of shares of the commercial banks changed hands. Citizen Investment Trust followed suit with turnover of more than Rs 20 million. The trust has declared 22 percent stock dividend to its shareholders from the profit earned in Fiscal Year 2017/18. Likewise, Nepal Life Insurance Company Ltd and Upper Tamakoshi Hydropower Ltd saw trading of shares worth Rs 18 million each. Shares of Machhapuchhre Bank Ltd and NMB Bank ltd were also high in demand as shares worth Rs 15 million each were traded on the day.

Among advances, United Finance Company Ltd turned in the best performance of the day as its share price rallied by 9.46 percent. Share price of the recently-listed Asha Laghubitta Bittiya Sanstha also shot up by 8.72 percent. World Merchant Banking & Finance Ltd and Goodwill Finance Co Ltd also posted gains of 6.17 percent and 5.26 percent, respectively. Laxmi Value Fund-1 and NIC Asia Growth Fund followed suit with advances of around 5 percent each.

In contrast, Hathway Finance Company Ltd and Arun Kabeli Power Ltd suffered the most as their share prices tanked by almost 8 percent each. Himalayan Distillery Ltd and National Hydropower Company Ltd also saw their share prices go down by over 5 percent apiece. Gurans Life Insurance Company Ltd, Taragaon Regency Hotel Ltd and Radhi Bidyut Company Ltd were among other top losers of the day.

According to ARKS technical analysis, the index formed a bearish candlestick on the daily timeframe erasing some of its previous day gains. Despite the day's loss, technical indicators still indicate strength in the secondary market in the current scenario. To the downside, support is provided by 1,140 points, while the immediate resistance lies at 1,180-point.

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