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Nepse posts weekly loss as earning spell subsides

2018-08-26

Stocks fell for all trading sessions of the week as the Nepal Stock Exchange (Nepse) Index erased all of its previous week's gain. Sunday was marked by the biggest decline of the week where the index shed more than 14 points. Subsequently, weakness carried to the remaining sessions with the Nepse Index posting a weekly loss of 31.82 points or 2.63 percent to settle at 1,178 points.

Nepse index that added almost 30 points in the previous week on the heels of upbeat quarterly reports, witnessed a major sell off this week. The market thus remained largely affected by profit-booking stance undertaken by investors. With the index closing lower, market activity also remained slightly subdued as the turnover dipped by over 17 percent to Rs 1,177 million. 

Sensitive Index, which reflects the performance of class 'A' stocks, also reflected the broader and fell 2.5 percent. Moreover, all major sub-indices, barring the trading index, ended in the red. Major weakness was visible among Life Insurance stocks, as its sub index shed the most and tumbled over 4 percent. Sub-indices of Manufacturing/Processing, Microfinance and Non-Life Insurance groups followed suit and sank over 3 percent each. Banking stocks also remained under pressure as its sub-index went down by 2.59 percent.  

NMB Bank Ltd was the most active stock for the week with a turnover of over Rs. 66 million. This week more than 11 million units of the bank's Further Public Offering (FPO) shares got listed in the exchange. Shares of Grameen Bikas Laghubitta Bittiya Sanstha Ltd were also actively traded as more than Rs 46 million worth of its shares changed hands. The micro-sector lender has called for its annual general meeting (AGM) on September 21 with issuance of 50 percent right shares as one of its key agendas. Other top turnover stocks for the review period include NLG Insurance Company Ltd, Nepal Investment Bank Ltd Promoter Share and Global IME Bank Ltd. 

In the news, recently issued shares of Nadep Laghubitta Bittiya Sanstha Ltd got listed in the exchange this week and opened for trading. The company also published its fourth quarterly financials on Thursday, reporting a 32.74 percent net profit decline year-on-year. In the announcement front, Ngadi Group Power Ltd has called for its annual general meeting (AGM) on September 20. Among others, issuance of 30 percent right shares and distribution of 10 percent cash dividend are its main agendas for the meeting. 

ARKS technical analysis model indicates the index closing below 1,180 points support mark. However, the index is still trending in the consolidation range indicating lack of significant direction in the equity market. Technical indicators also indicate subdued momentum of late. Hence, investors must remain watchful of a potential breakout in either direction in the present context.

Source: My Republica