Nepse surge diminutive: yet feeble to boost stocks

Jamb Daily News Service
Nepal stock exchange ascends minuscule on Tuesday though volume was light after retreating for fifth session in a row. Investors stampede to demand for banking scrip escorted the sole secondary market to settle at positive note, yet underneath the psychological point 600. The benchmark index added 0.43 points or 0.07 percent to 598.80 at the closing bell after plunging to intra-day low of 597 and hitting high of 600.20.
"Even though the market surge after long downhill rally, the key stuff to boost the market is yet beyond the clouds. The rise occurred today was the natural phenomenon of stock market fluctuation but not through rational investor confidence".
Key banking scrip as Standard Chartered (Rs. 3150, +Rs. 9), Everest Bank (RS. 2200, +Rs. 30) along with basket of scrip rose to guide the commercial bank index to 579.75, adding 1.14 points or 0.20 percent. However, downswing in price of Nabil Bank (Rs. 2765, -Rs. 34), Bank of Kathmandu (Rs. 1540, -RS. 40) capped the banking gains. Likewise, hydro sector which consist of three companies heaved up 7.23 points or 0.87 percent on price augment of Butwal Power (Rs. 960, +RS. 8) and National hydropower (Rs. 86, +Rs. 1). However, development bank lost 2.55 points or (-0.39%) to 651.78 and finance slid 2.58 points to 628.41. The biggest losers from development bank was Business Development Bank (Rs. 265, -5.36%) and from finance sector Royal Mer. Banking and Fin topped the chart with 3.88 percent decline to Rs. 452. Insurance and others indexes remained unchanged compared to previous session.
The slight uptick in demand of key commercial bank led domestic blue chip or sensitive index to close at 150.55 adding 0.02 points or 0.01 percent. 14 commercial banks, 37 finance companies, 15 development bank, 10 insurance companies and one each from hydropower and manufacturing companies are included in sensitive index. Similarly, float Index an indicator of performance of ordinary shares in the market rose 0.03 points to 57.17.
Declining stocks narrowly outpaced advancing ones on the Nepal stock exchange where volume came to lighter of Rs. 48828426 compared with Rs. 172023758 at the same time Monday. Merely 63 companies registered their presence in the secondary market with 25 gainers and 26 losers. The A-D ratio was maintained at 0.96. All in all 78754 shares traded today via 821 transactions for Rs. 422068.29 million market capitalizations.
The top five standouts of the day are MFCL(6.79%), LUBL( 4.9%), LBL( 3.52%), KMBSL( 2.67%), MBL(1.89%). Whereas, NABILP(-26.73%),BDBL( -5.36%), RMBFI( -3.83%), PRFL( -3.7%), AEFL( -3.63%). comprised of the top five losers.

Turnaround on the horizon as Share market enters oversell zone

REPUBLICA
The Nepse index (-3.10%) touched a three month low of 654.63 points on Tuesday, before closing at 660.40 points, as investors remained concerned over the supply impact of the conversion of 19% promoters´ shares. However, the current downtrend in the market is fundamentally unjustified, and the supply pressure has been overestimated.
Finance Companies were the key players in the market. Prudential Bittiya Sanstha (+Rs 37) which is closing its book for a 1:2 right issue on September 9 was the highest gainer followed by Bhajuratna Finance (+Rs 12) and Everest Finance (+Rs 28). However, the big losses of Guheshwori Merchant & Banking Finance (-Rs 139) whose shares traded for the first time since the issuance of 18% bonus shares and World Merchant Banking & Finance (-Rs 75) pulled down the Finance sub-index(-1.39%). The rest of the active sectors too traded in the red, with Commercial Banks (-4.10%) suffering the steepest decline as Bank of Kathmandu (-Rs 141) and DCBL Bank (-Rs 19) recorded the biggest losses in the sector. Development Banks (-2.50%) followed suit with Siddhartha Development Bank (-Rs 33) falling the most. Similarly, Hydropower sub-index (-2.07%) also declined because of the fall in share prices of Butwal Hydropower (-Rs 5). Although Lumbini General Insurance (+Rs 12) posted one of the highest gains of the week, the losses in the prices of the majority of the insurance companies contributed to the overall decline of the Insurance sub-index (-0.59%). Similarly, the depreciation of Nepal Telecom´s (-Rs 11) stock price dragged down the ´Others´ index (-1.78%).
Among other news, IME Financial Institution declared 1:3 right shares, and Sunrise Bank announced the distribution of its IPO. Additionally, Birgunj Finance and Goodwill Finance announced their book closure dates for 1:3.92 right (on September 7) shares and 1:1.5 right shares (on September 15) respectively. Business Development Bank also announced book closure for 1:2.1 right shares on September 14. The market attempted to recover on Wednesday by gaining 5.77 points. Technical analysis indicates that the market is currently in an oversell state and might have reached the threshold, in which case a slight uptrend can be anticipated next week. However, the strength of the uptrend remains uncertain due to regulation risks still lurking. The total turnover of the week amounted to Rs 34,54,33,241, with a 15.78% decrease in the average daily volume.

NEPSE makes another downfall

KATHMANDU, Aug 26 - The Nepal Stock Exchange (NEPSE) Tuesday lost 14.47 points on the trading floor. The sensitive index also decreased by 4.8 points.
A majority of the sub-indices on NEPSE saw a decline on Tuesday. The banking sector lost the most by shedding 23.42 points followed by the insurance, finance and development bank sectors which went down by 1.66 points, 1.07 points and 0.58 point respectively.
The share market witnessed a total turnover of Rs. 86.36 million with 123,722 shares being traded. Shares of 55 companies changed hands on NEPSE.
Among the 21 commercial banks listed on NEPSE, Laxmi Bank posted the biggest growth with its stock rising by 6 points while Nabil Bank lost the most on the trading floor by shedding 290 points.
Similarly, among the 10 development banks whose shares were traded on NEPSE, Ace Development Bank witnessed the highest increase of 11 points while Triveni Bikas Bank dropped 14 points.
Among the 15 finance companies on NEPSE, ICFC Bittiya Sansthan was the highest gainer with an increase of 9 points in its share price. NIDC Capital Markets lost 22 points.
The top five winners on NEPSE were Ace Development Bank with a 2.33 percent rise in its stock price followed by ICFC Bittiya Sansthan, DCBL Bank, Butwal Power Company and Chilime Hydropower Company. Similarly, the top five losers on Tuesday were Nepal Investment Bank which fell by 9.92 percent followed by Kumari Bank, Nabil Bank, Global Bank and Nepal Bangladesh Bank.
Butwal Power Company topped the chart in terms of turnover with Rs. 10.18 million. - Kantipur Report