Daily Market Commentary

Nepse snaps two-day winning run

Published On: December 12, 2018 09:51 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Dec 12: Stocks logged gains in initial trading on Tuesday. However, the benchmark Nepal Stock Exchange (Nepse) index began its decline in the afternoon session, giving up its earlier gains to trade slightly lower for the remaining session. At the close, Nepse dropped a modest 3.08 points to settle at 1,141.10 points. 

After witnessing two successive days of gains, the index eased slightly on Tuesday. Nonetheless, the index is still trading higher than the week's opening level. As Nepse hit its 3-year closing low in the previous week, investors seem relatively enthused in buying scrips at some of the cheapest price levels this week. The bourse posted a turnover of Rs 383 million on Tuesday.

Traded sectors turned in mixed performance as the major sub-indices posted marginal movements into either side of the spectrum. Manufacturing & Processing sub-index advanced the most and climbed 0.63 percent. Meanwhile, sub-indices of 'Others' and Finance groups edged slightly higher. On the losing front, shares of Hotels and Microfinance sub-groups came under pressure with their respective sub-indices shedding over 0.8 percent each. Meanwhile, Non-life Insurance, Life Insurance, Hydropower and Banking sub-indices fell slightly.

Nepal Bank Ltd continued to trade actively as more than Rs 134 million worth of the commercial bank's shares were traded on the day. Nepal Investment Bank Ltd and NMB Bank Ltd followed suit with turnovers of Rs 28 million and Rs 25 million, respectively. Next on the list of active stocks was Nepal Life Insurance Company Ltd with Rs 16 million worth of shares traded. Shares of NIC Asia Bank Ltd, Janata Bank Nepal Ltd and Soaltee Hotel Ltd were also traded actively on the day. 

Among advances, shares of Guheshwori Merchant Bank & Finance Co Ltd posted the led the list of listed companies as its share priced rallied 8.47 percent. Next on the list was Progressive Finance Ltd which saw its share price advance by 5.77 percent, while Arambha Microfinance Bittiya Sanstha added 4.07 percent on its share price. Further, Central Finance Co Ltd, Mero Microfinance Bittiya Sanstha Ltd and Radhi Bidyut Company Ltd were among other stocks, posting gains of over 2 percent each.

Manjushree Finance Ltd, on the other hand, came under significant pressure as its share price tumbled over 7 percent after the Class 'C' financial institution amended its cash dividend declaration to 2.9 percent from 9 percent. Share price of Nepal Seva Laghubitta Bittiya Sanstha also slumped by 5.52 percent. Similarly, share prices of RMDC Laghubitta Bittiya Sanstha Ltd and Panchakanya Mai Hydropower Ltd fell by over 4 percent each. Share prices of Ngadi Group Power Ltd, Grameen Bikas Laghubitta Bittiya Sanstha Ltd and Laxmi Equity Fund also closed over 3 percent lower, each. 

On the corporate space, Janata Bank Nepal Ltd announced 8.50 percent cash dividend to its shareholders from its earnings of Fiscal Year 17/18. In other news, Nerude Laghubitta Bittiya Sanstha Ltd has scheduled its Annual General Meeting (AGM) for January 4. Distribution of 15 percent bonus shares is one of the key agendas of the AGM.

ARKS technical analysis indicates the market correcting slightly after two-day winning run. Technical indicators, meanwhile, indicate a feeble momentum in the present context with Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) trending in the lower side of the spectrum. Hence, cautious trading is suggested in the current juncture.

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)

Leave A Comment