Daily market commentary

Nepse up for a second straight day with a 5-point advance

Published On: July 16, 2019 04:00 AM NPT By: Republica

KATHMANDU, July 16: Stocks posted sideways movement in the initial trading hour on Monday. Nonetheless, the market witnessed some improvement at mid-day with the Nepal Stock Exchange (Nepse) climbing 5 points higher. The benchmark index traded flat in the remaining trading session to close the day at 1,254.56 points -– up 5.08 points compared to Sunday's close.

Some buying pressure was seen in the afternoon in all of the traded sectors which pushed the benchmark equity index slightly higher. Nonetheless, the index is still ranging between a confined span as investors still lack significant conviction regarding the possible direction of the secondary market. Daily turnover improved slightly. The market posted a total turnover of Rs 430 million against Rs 285 million in the session earlier.

All major sectors closed in the green. Biggest gains came from Manufacturing & Processing and Mutual Fund segments with the respective sub-indices rising 1.39% and 1.36%. Similarly, sub-indices of Hydropower and Hotels stocks both closed over 1% higher. Besides, all other sectors witnessed marginal gains on the day.

Shares of Nepal Bank Ltd was the most actively traded scrip with a turnover of over Rs 52 million. Secondly, Shivam Cements Ltd posted transactions worth Rs 36 million. Nepal Life Insurance Company Ltd Promoter Share and ordinary shares of Nabil Bank Ltd, Nepal Life Insurance Company Ltd and NIC Asia Bank Ltd were also actively traded in the session.

Swadeshi Laghubitta Bittiya Sanstha Ltd led the day's broad rally with a gain of 5%. NIC Asia Growth Fund units closely followed and jumped 4.81%.

Rairang Hydropower Development Company Ltd, Reliance Finance Ltd and NIBL Pragati Fund units advanced over 4% each.

On the other hand, Nabil Bank Ltd was the biggest percentage loser of the day. The commercial bank's share price slumped over 3%. Shares of Multipurpose Finance Company Ltd, Ghalemdi Hydro Ltd and Mahila Sahaytra Microfinance Bittiya Sanstha Ltd also came under some pressure and fell over 2% each. Shrijana Finance Ltd, Kamana Sewa Bikas Bank Ltd and Green Development Bank Ltd were among other losing scrips of the day.

In the news, IME General Insurance Ltd conducted its Annual General Meeting (AGM) on July 14 where it approved the board's decision to endorse 5% bonus shares to its shareholders.

ARKS technical analysis indicates a bullish candlestick formation following the broad rise seen in the secondary market on Monday. Nonetheless, range bound trading has continued in the bourse as the market lacks any clear direction. Technical indicators also indicate neutral sentiment prevailing in the current scenario. Hence, further cautious trading is suggested in the present context.

This column is produced by ARKS Capital Advisors Ltd

(Views expressed in the article are those of the producer and do not necessarily reflect those of this publication)


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