Daily market commentary

Nepse stretches winning run

Published On: April 3, 2019 07:44 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU: Stocks witnessed significant strength in Tuesday's trading as the Nepal Stock Exchange (Nepse) index ended 13.72 points higher to close the day at 1,163.47 points. The benchmark index had gained almost 15 points by the afternoon session. It, however, gave up some of its gains in the closing hours. Nonetheless, the index maintained positive bias throughout the remaining trading hours to close the day firmly above 1,160 points.

Following the day's gain, Nepse closed in green for the second straight session. Buyers continued to remain dominant throughout the day. The surge was also accompanied by increase in market participation as the bourse registered turnover of over Rs 500 million.

All major sub-indices, except Non-life Insurance and Hydropower, ended the day in green, following the broad rally. Banking and Hotels sectors logged gains of 1.97 percent and 1.14 percent, respectively. The sub-indices of Others, Life Insurance, Manufacturing & Processing, Finance, Development Bank and Microfinance stocks also closed slightly higher.

Commercial banks continued to feature in top turnover list on Tuesday as well. Nepal Credit and Commerce Bank Ltd and NIC Asia Bank Ltd posted turnover of more than Rs 40 million and Rs 37 million, respectively. Similarly, shares worth over Rs 27 million, Rs 22 million and Rs 20 million of NMB Bank Ltd, Nepal Bangladesh Bank Ltd and Prabhu Bank Ltd, respectively, were traded on the day. Further, shares of Prime Commercial Bank Ltd, Everest Bank Ltd and Citizen Bank International Ltd were also traded actively.

Bhargav Bikas Bank Ltd led the list of top gaining stocks as its share price surged by almost 10 percent. Unit prices of Laxmi Equity Fund and NMB Hybrid Fund L-1 also advanced by 5 percent each. Among finance companies, Pokhara Finance Ltd and Janaki Finance Ltd moved to green as their share prices went up by 4 percent each.

In contrast, share price of Universal Power Company Ltd registered the biggest percentage drop of 9.58 percent. Share price of Kanchan Development Bank Ltd also suffered and went down by almost 5 percent. Besides, share prices of United Finance Ltd, Janautthan Samudayic Laghubitta Bikas Bank Ltd, Arun Valley Hydropower Company Ltd and Shangrila Development Bank Ltd fell by over 2 percent each.

On news front, over 4 million units of right shares of IME General Insurance Ltd were listed on the exchange for trading. The insurer's paid-up capital has reached Rs 972 million after the issue.

As per the ARKS technical analysis, the market formed a bullish candlestick for the second straight day, adding to Monday's surge. Both Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) also indicate fairly bullish sentiment in the current scenario. Nonetheless, the index is on the verge of testing the immediate resistance at 1,163 points. Its breach might indicate another plausible move to around 1,200 points.

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)

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