Daily market commentary

Stocks climb for second consecutive day

Published On: July 24, 2019 05:30 AM NPT By: Republica

KATHMANDU, July 24: The Nepal Stock Exchange (Nepse) index witnessed a strong start to Tuesday's trading session reaching as high as 1,279 points at mid-day. However, the benchmark index gave up most of its gains later in the afternoon. The market saw some strength in the final trading hour to close the day 5.94 points higher at 1,277.17 points.

Stocks stretched its gains to a second straight session as selling pressure has remained relatively subdued. Nonetheless, market activity remained below par as investors await monetary policy which is due within short order. Turnover stood at Rs 369 million on the day.

On the sectoral front, microfinance stocks led the gains. The group's sub-index climbed 1.91%. Non-Life Insurance and Banking segments followed suit with the respective sub-indices adding 0.75% and 0.61%. Development Bank, Mutual Fund, Life Insurance and Finance sectors also climbed marginally higher. On the other hand, Hydropower, Hotels, Manufacturing & Processing and 'Others' stocks registered modest losses.

Government owned banks were actively traded on the day. Agriculture Development Bank Ltd and Nepal Bank Ltd posted turnovers of Rs 45 million and Rs 36 million, respectively. Subsequently, Nepal Life Insurance Company saw transactions of over Rs 17 million. Shivam Cements Ltd, Prabhu Bank Ltd and Nabil Bank Ltd were among other top turnover scrips.

Microfinance scrips continued to dominate the list of top gainers. Mahila Sahayatra Microfinance Bittiya Sanstha Ltd and Swadeshi Laghubitta Bittiya Sanstha Ltd rallied over 7% each. Similarly, National Microfinance Bittiya Sanstha Ltd, Laxmi Laghubitta Bittiya Sanstha Ltd and Samata Microfinance Bittiya Sanstha Ltd shot up by over 5% apiece.

On the other hand, energy stocks struggled with the worst performance coming from shares of Dibyashwori Hydropower Ltd. The hydropower company's price tumbled 7.24%. Next, Union Hydropower Ltd and Shrijana Finance Ltd registered losses of over 3% each. Himalayan Power Partner Ltd, Himalaya Urja Bikas Company Ltd, Panchakanya Mai Hydropower Ltd and Barun Hydropower Co Ltd's shares dropped over 2%.

In the corporate front, United Insurance Co Nepal Ltd announced its book closure date for 240% right share issuance on July 30. Following the capitalization of the right shares, its paid up capital will cross mandatory Rs 1 billion mark. In other news, Lumbini Bikas Bank Ltd has called for its Annual General Meeting (AGM) for the Fiscal Year 2017/18 on August 13 with endorsement of 17.07% bonus shares as its key agenda among others.

ARKS technical analysis indicates the market forming a second bullish candlestick as the index held its ground above 1,270 points mark. Technical indicators also suggest momentum favoring bulls in the present context. Hence, given the equityindex maintains above 1,270 points level with active market participation, a surge to 1,300 points can be expected.

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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