Daily market commentary

Nepse up 3 points on first trading day of week

Published On: December 9, 2019 09:38 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU: The Nepal Stock Exchange (Nepse) index started with gains in early trading on Sunday. The benchmark index, however, failed to keep up the momentum going and shed 5 points by mid-session. Nonetheless, the index recouped its early losses and ended the day 3.45 points higher at 1,135.47 points on the first trading day of the week.

However, market participation shows passive trading on the bourse with only Rs 287 million worth of shares traded on the day.

Sub-indices closed the day in mixed zone. Others, Trading and Microfinance sub-indices managed to eke out gains of 3%, 1.99% and 1.11%, respectively. Hotels, Developments Bank and Banking sub-indices ended the day with a meager increment. On the other hand, Non-Life Insurance, Hydropower, Manufacturing & Processing, Finance, Life Insurance and Mutual fund sub-indices fell marginally.

Nepal Life Insurance Co. Ltd Promoter Shares led the list of active stocks as over Rs 21 million worth of the units changed hands on Sunday. Muktinath Bikas Bank Ltd, NMB Bank Ltd and Nepal Life Insurance Co Ltd registered turnovers of Rs 17 million, Rs 16 million and Rs 12 million, respectively. NIC Asia Bank Ltd, Civil Bank Ltd, Nabil Bank Ltd and Shree Investment & Finance Co Ltd Promoter Share were among other active stocks of the day.

Among advances, Kanchan Development Bank Ltd turned in the best performances of the day as its share price rallied by up to 7.1%. Similarly, Swarojgor Laghubitta Bikas Bank Ltd, Union Hydropower Ltd, Infinity Laghubitta Bittiya Sanstha Ltd, Deprosc Laghubitta Bittiya Sanstha Ltd and Naya Nepal Laghubitta Bikas Bank Ltd saw their share prices jump up by over 5% each.

Conversely, National Microfinance Bittiya Sanstha Ltd, Ankhu Khola Jalabidhyut Company Ltd and Himalaya Urja Bikas Company Ltd turned in the worst performance of the day. Their respective share prices tanked 3.84%, 3.5% and 3%. Likewise, Ghodighoda Laghubitta Bittiya Sanstha Ltd, Rastriya Beema Company Ltd, Arun Kabeli Power Ltd and Synergy Power Development Ltd saw losses of over 2% each.

Among companies publishing their financials for the first quarter of FY2019/20, Ngadi Group Power Company Ltd has reported net profit of Rs 31.7 million.

On news front, 537,185 units of bonus shares of Oriental Hotel Ltd have been listed for trading in the country's only bourse. The hotel had distributed 5% bonus shares and 10.79% cash dividend for FY2018/19.

ARKS technical analysis indicates the market forming a small bullish candlestick on the daily timeframe. Similarly, the market seems to be slowing taking the pace for the upper movement at the current juncture. Likewise, technical indicators also reflect the bulls are gaining control over the market. However, a breach of 1,150-point immediate resistance with significant volume will only validate the rebound further.

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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