KATHMANDU, Nov 5: Nepali stocks began Thursday’s trading on a weak note. The Nepal Stock Exchange (Nepse) index fell around 3 points in the morning. Some more losses were seen in the afternoon but the decline remained modest. The index hovered around 1,635 points throughout the session. At the close, Nepse registered a loss of 4.55 points to finish at 1,636.09.
Nepse stretched its sideways movement further with another marginal move to the downside. Hence, the theme for the security market points towards further indecisiveness. While the market has maintained its footing above 1,600 points mark, keeping the uptrend intact, another major move towards either side is yet to be observed. Besides, investors are also keeping a close eye on financial reports being published by listed companies as reflected by recent cautious trading. Daily turnover increased to Rs 2.84 billion on Thursday, against Rs 1.76 billion in the prior session. 
Most of the sectors followed the broader market and ended the day in red. Trading sector fell 1.53% after a sharp correction seen in shares of Bishal Bazar Company Ltd. Heavyweight banks also suffered a 0.61% loss followed by Microfinance segment which dropped 0.5%. Non-Life Insurance, Manufacturing & Processing, Mutual Fund, ‘Others’ and Finance sectors’ sub-indices inched marginally towards red. On the other hand, Hydropower sub-index added 0.98%. Hotels, Development Bank and Life Insurance sectors saw minimal gains. 
Shares of Prime Commercial Bank Ltd were traded the most. Over Rs 208 million worth of the commercial banks shares changed hands after the bank published its financial report for the first quarter. As per the report, the bank’s net profit rose 54% year-on-year to Rs 1.02 billion. Next, Arun Kabeli Power Ltd and Everest Bank Ltd’s shares were also heavily traded registering turnovers of Rs 185 million and Rs 165 million. Api Power Company Ltd, Himalayan Distillery Ltd and Arun Valley Hydropower Development Company Ltd were the other active stocks of the day. 
Sanima General Insurance Ltd shot up by 10% for a second straight day. Similarly, Rairang Hydropower Development Company Ltd, Gurkhas Finance Ltd and Sindhu Bikash Bank Ltd remained locked in the upper circuit of positive 10%. Ghalemdi Hydro Ltd, Api Power Company Ltd and Arun Kabeli Power Ltd also saw major strength with gains of over 7% apiece. 
Bishal Bazar Company Ltd led the list of losers tumbling more than 8%. Shiva Shree Hydropower Ltd also sank 7.88%. Everest Bank Ltd closed almost 6% lower, after it announced 5% stock dividend and 5.53% cash dividend for the fiscal year 2019/20. The bank had distributed 5% stock dividend and 20% cash dividend in the prior fiscal year. Nadep Laghubitta Bittiya Sanstha Ltd, Summit Laghubitta Bittiya Sanstha Ltd, Nerude Laghubitta Bikas Bank Ltd and Sarathi Nepal Laghubitta Bittiya Sanstha were among other major decliners on Thursday.
As per the ARKS technical analysis, the market formed a small bearish candlestick on the daily timeframe. Despite the losses, the sentiment remains neutral with the index hovering within a confined range in the past six sessions. Technical indicators reflect some weakness, but the general trend remains northbound. A crucial support lies at 1,600 points mark, while the index may face resistance around 1,650 point’s level. 
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)
www.arkscapitaladvisors.com

 
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