Daily market commentary

Nepse stretches losses for third straight day

Published On: September 27, 2019 07:53 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU: Nepal Stock Exchange (Nepse) index started trading on a lower note on Thursday. Though the benchmark index tried to recover slightly toward mid-session, it failed to maintain the momentum and eventually ended the last trading day of the week 1.73 points lower at 1129.80 points.

The bourse witnessed another dull trading session as both buyers and sellers remained relatively inactive on the day. Turnover also remained on the lower side of the range with only Rs 212 million worth of shares changing hands.

Most of the sectors ended the day in red. Only Mutual Fund, Life Insurance, Hydropower and Hotels sub-indices posted marginal gains. Trading scrips suffered the most with its sub-indices falling by 1.62%. Manufacturing & Processing, Microfinance, Non-Life Insurance, Development Bank, Banking and Others sub-indices also logged marginal losses.

Machhapuchhre Bank Ltd was the most active stock of the day with transactions of over Rs 19 million. Sanima Bank Ltd, Prabhu Bank Ltd, Mega Bank Ltd, and Nepal Bank Ltd were next on the list with Rs 12 million, Rs 11 million, Rs 10 million and Rs 8 million worth of shares traded, respectively. Similarly, NLG Insurance Company Ltd, Nepal Life Insurance Co Ltd logged transactions of over Rs 6 million each, while stocks worth over Rs 5 million each of Agriculture Development Bank Ltd and NIC Asia Bank Ltd were traded on the day.

Among gainers, Synergy Power Development Ltd, Gurkhas Finance Ltd, and Himalaya Urja Bikas Company Ltd saw their respective share prices go up by 7.46%, 6.54% and 5.66%, respectively. Subsequently, share prices of Nerude Laghubitta Bittiya Sanstha Ltd, Himalaya Power Partner Ltd, Samata Microfinance Bittiya Sanstha Ltd, and Panchthar Power Company Ltd also advanced by more than 3% each.

Conversely, Joshi Hydropower Company Ltd suffered most as its share prices tanked 5.26%. Similarly, Bishal Bazar Company Ltd, Vijaya Laghubitta Bittiya Sanstha Ltd, RMDC Laghubitta Bittiya Sanstha Ltd, and Corporate Development Bank Ltd also saw their share prices go down by over 3% each.

In corporate space, Mega Bank Ltd has proposed 11.75% cash dividend for its shareholders from the profit accumulated till FY2018/19. The proposal is subject to approval of the Nepal Rastra Bank and the upcoming annual general meeting (AGM) of the bank. Asha Laghubitta Bittiya Sanstha (ALBSL) is holding its 3rd AGM on October 24. Approval of 12% bonus shares is the main agenda of the meeting. The micro lender is closing shareholder’s book from October 7.

ARKS technical analysis indicates the market forming a small bearish candlestick on the daily timeframe, suggesting minor selling pressure in the bourse.  Meanwhile, the technical indicators suggest indecisiveness in the secondary market. The market is facing lack of noteworthy turnovers which further confirms indecision being experienced by investors. Hence, cautious trading is suggested unless a clear breakout from 1,120-1,180 points range is visible.

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