Daily market commentary

Nepse unchanged in choppy trading

Published On: December 3, 2019 09:23 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU: The stock market observed a choppy session and faltered along the opening level throughout the day on Monday. The benchmark Nepal Stock Exchange (Nepse) ended the day essentially unchanged at 1,111.99 points losing a meager 0.86 points.

The benchmark index is yet to see any significant changes toward either side of the range with the market posting a low turnover of only Rs 232 million on Monday.

Most of the sectors, except Trading, Insurance Hydropower and Banking sub-indices which went up by 3.2%, 1.26%, 0.24% and 0.11%, closed the day in red. Mutual fund, Hotels, Others, Development Bank, Finance, Non-life Insurance, Manufacturing & Processing and Microfinance sub-indices logged minor losses.

Stocks of NMB Bank Ltd continued to trade actively for second straight day on Monday recording transactions worth Rs 19 million. Nepal Life Insurance Company Ltd, Janautthan Samudayik Laghubitta Bittiya Sanstha Ltd and NIC Asia Bank Ltd shares followed suit with transactions of Rs 13 million, Rs 11 million and Rs 10 million, respectively. Likewise, Salt Trading Corporation and Century Commercial Bank Ltd Promoter Shares registered turnover of over Rs 8 million each.

Among advances, share price of National Microfinance Bittiya Sanstha Ltd hit the upper circuit rallying almost 10%. Next, Mahuli Samudayik Laghubitta Bittiya Sanstha Ltd also saw its share price advance by 7.83%. Salt Trading Corporation and Panchthar Power Company Ltd were among advancing stocks with gains of 4.41% and 4%, respectively.

Conversely, stocks of Arun Kabeli Power Ltd led the list of decliners by giving up more than 6% on Monday. Meanwhile, share prices of Shine Resunga Development Bank Ltd, Ankhu Khola Jalabidhyut Company Ltd and IME General Insurance Ltd dropped by over 5% each.

In corporate space, Forward Community Microfinance Bittiya Sanstha Ltd has proposed to distribute 32.5% bonus shares and 12.5% cash dividend to its shareholders from the profit of FY2018/19. The proposal is subject to approval of Nepal Rastra Bank (NRB) and the company's upcoming annual general meeting (AGM). The current paid-up capital of the microfinance stands at Rs 377.6 million and after the adjustment of bonus shares, the paid-up capital will reach Rs 500.3 million. Chautari Laghubitta Bittiya Sanstha Ltd is convening its AGM on December 25. Merger with Arambha Laghubitta Bittiya Sanstha Ltd is one of the main agendas of the AGM.

ARKS technical analysis suggests that the market formed a small bearish candlestick on the daily timeframe. Currently, the stock market is trading in the sideways movement between the consolidations ranges. Likewise, the technical indicators suggest the slight bearish sentiment prevailing in the market. At the current juncture, the support of 1,100 points level has held ground where the index's movement must be observed cautiously for any indication of the market's possible way.

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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