KATHMANDU, Dec 4: The benchmark equity index traded flat in the initial hour of Monday's trading session. However, the local bourse witnessed a broad rally as the Nepal Stock Exchange (Nepse) index climbed more than 13 points in mid-day. Though the move was short lived as the session progressed, the index settled at 1131.73 points with a meager increment of 0.90 points against the day earlier.
Nepse recouped most of its previous day's losses following the day's gain. Over Rs 637 million worth of shares were traded in the exchange on Monday compared to Rs 454 million in the previous session.
Some of the sub-indices reflected the broader market and ended in the green. The biggest gains came from Non- Life Insurance stocks as its sub-index rallied 1.84 percent on the day. Development Bank, Life Insurance and 'Others' sub-indices also posted a significant move to the upside.
On the other hand, shares of Microfinance, Trading and Manufacturing & Processing sub-indices came under pressure. Meanwhile, Finance, Hydropower, Hotels and Banking sub-groups also landed in the red zone.
Nepal Bank Ltd's shares led the market participation for the second consecutive day. More than Rs 319 million worth of the bank's shares changed hands on the day. Next, shares of Muktinath Bikas Bank Ltd registered turnover of over Rs 22 million. Stocks of NMB Bank Ltd and Prabhu Bank Ltd also traded actively and posted a total transaction of over Rs 14 million each. Kumari Bank Ltd, Nepal Life Insurance Company Ltd, NIC Asia Bank Ltd and Mega Bank Ltd were the other active stock in the day's session.
Vijaya Laghubitta Bittiya Sanstha Ltd led the list of gainers for the second day in a row. Its price surged almost 7 percent. Next, shares of Saptakoshi Development Bank Ltd posted a gain of 5.5 percent while United Modi Hydropower Ltd climbed 4.8 percent. Besides, stocks of Rastriya Beema Company Ltd promoter share, Rastriya Beema Company Ltd, IME General Insurance Ltd and NIBL Pragati Fund were among other advances with 3 percent gains each.
Conversely, shares of Rairang Hydropower Development Company Ltd posted the highest loss of 5.5 percent on its price. It was followed by shares of Multipurpose Purpose Company Ltd, Global IME Laghubitta Bittiya Sanstha Ltd with the drops of 3.68 percent and 3.63 percent, respectively.
Similarly, Grameen Bikas Laghubitta Bittiya Sanstha Ltd, Summit Microfinance Development Bank Ltd, Shrijana Finance Bittiya Sanstha Ltd and Citizen Investment Trust also posted losses of over 3 percent apiece.
Among the companies declaring dividends, Sahayogi Vikas Bank Ltd announced 17 percent cash dividend to its shareholders. The agenda is yet to be approved from its upcoming annual general meeting (AGM) and Rastra Bank. Kumari Bank Ltd also declared 12.75 percent bonus shares for the fiscal year 16/17. The respective issue is subject to approval from the Rastra Bank and upcoming AGM of the company. After the issue, the paid up capital will reach Rs 8 billion mark.
As per the ARKS technical analysis, the overall sentiment still appears significantly bearish despite the index easing off slightly on Monday. Technical indicators, including Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD), also suggest that the market is yet to see a significant shift in momentum. Hence, investors are suggested to trade on a cautious note in the present context.
This column is produced by ARKS Capital Advisors Ltd www.arkscapitaladvisors.com
(Views expressed in the article are those of the producer and do not necessarily reflect those of this publication)