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January 2015 Stock Taking

Published on: 2015-01-29 00:00:00     952 times read    0  Comments
Most of the listed companies have declared their dividends and few others are about to make these announcements. This means that the price adjustment of the stock after dividend declaration has also played role in driving the prices lower for such few companies. 
 
--By Bikram Chitrakar
 
The Nepali stock market added only 8 points during the review period paring the initial gains by the losses in the last part of the month as the expected speed in the improvement of political situation were defied. The Nepse index added 8.06 points to rest at 877.21 while the session’s high was on 15 December with 916.74 and lowest was on 2 December with 846.41. 
 
As the turnover volume was lower this month than in the previous month, experts find the present situation directionless. The market is waiting for signal about how the political environment will be like after January 22, the date fixed to promulgate the new constitution. Total turnover during the period was of Rs 3.82 billion through 37,571. This turnover is 35.17% less than the previous month, which indicates that the investors are in a mood of wait and watch while few of them hurried to secure their position driving the selling pressure. 
 
Most of the listed companies have declared their dividends and few others are about to make these announcements.  This means that the price adjustment of the stock after dividend declaration has also played role in driving the prices lower for such few companies. Confusion related to loans against the dematerialized shares also pushed the market down for few sessions. However, CDS and Clearing has finalized the process so that loan against dematerialized share will start to be available very soon. 
 
 
Performance by Sector
Hotel sector escalated 79.54 points or 4.20% to close at 1972.26. Commercial banking sector added 22.97 points or 3.07% to rest at 771.5 while manufacturing sector gained 31.39 points or 2.59% to 1265.52. However, insurance sector skid down 150.69 points or 3.94% to 3672.26. Finance sector plummeted 10.49 points or 2.20% to rest at 467.34. Others sector lost 1.15% while development bank and hydropower closed negative by 0.10% and 0.07% respectively. 
 
Sensitive index that shows the performance of blue chip companies of Nepal went up 2.31 points or 1.24% to 188.14 while float index moved higher by 0.81 points or 1.34% to 61.21. The total volume of trade during the review period was dominated by commercial banks accounting for 46.70% of total trade. Insurance sector accounted for 17.25%, development bank 15.14% and hydropower sector 12.25%. Remaining portions were covered by other sectors. Technically, the Simple Moving Average (SMA) has dominated the index in both short and long term. On the other hand, most of the trading continued below 900 while the level of 913.83 has been identified as resistant by pivotal analysis. For the upside, only breaching up the 913.83 level could bring positive expectation. 
 
Chitrakar is a freelance Stock Analyst.

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