WEEKLY MARKET RECAP Aug 15-Aug 22, 2019 Issue-55

SUNRISE MARKET PULSE

Last week, stock market continued to move on the bearish path with NEPSE index reaching as low as 1209.78 points and closing at 1213.06, a weekly loss of 10.97 points. NEPSE enforcing the decision made by finance committee to suspend the brokerage licenses to banks and delay to incorporate weighted average cost calculation required for CGT calculation played dominant role in fueling negative sentiments among the common investors. On the positive side, attractive quarterly reports along with dividend announcements resulted buying pressure in some stocks.

On the initial trading day of the week, NEPSE index went down by 9.2 points and closed at 1214.83 points. On the second trading day, the index moved further down in first trading hour, made a intra day low at 1210.80 points and bounced up reaching up to 1229.51 within an hour. However, the index started to fall in third trading hour and closed at 1222.06 points on the day end gaining 7.23 points. On the third trading day, index continued its downward momentum, made a intraday low at 1212.10 points and closed at 1213.63 points losing 8.42 points. On the forth trading day, the index made a intra day low of 1209.78, witnessed a pull back and closed at 1214.05 points gaining merely 0.42 points. On the final trading day, the index made a high of 1220.91 points but started to drop after second trading hour and closed at 1213.06 losing 0.99 points.

Technical Indicators

Support and Resistance Currently the index is hovering around 1210-1200 region. This region acts as a critical support zone technically and psychologically too. A break out below this region will further strengthen the bearish momentum and might elevate selling pressure in the market. The second support for NEPSE is seen around 1180-1170 region. 1250-1260 region might act as resistance for NEPSE in case of a bounce while 1320-1330 region might act as second resistance for the index. RSI (Relative Strength Index) RSI of NEPSE was at 30 points at the end of last week which indicates oversold situation of the market. The RSI of NEPSE in the preceding week remained at 31. Moving Averages Short term moving average SMA 20 and SMA 5 are below SMA 50 indicating a short term bear in the market. Currently, SMA 5 and NEPSE index are very close to SMA 200.The fall of SMA 5 and index below SMA 200 will further strengthen the bearish momentum in the market. However, SMA 50 along with SMA 20 are still above SMA 200 which indicates that the market has not yet entered into a long term bearish trend.

Parameters

Weekly Close 1213.06

Weekly High 1229.51

Weekly Low 1209.78

Av. Volume (Rs.) 309,194,824

RSI 30

SMA(200) 1208.62

SMA(50) 1251.30

SMA(21) 1240.06

SMA(6) 1216.94

B. Band (Top) 1274.22

B. Band (Median) 1238.56

B. Band (Bottom) 1202.91

Technical Overview

Index Aug

15,2019 Aug

22,2019 % Change

NEPSE 1,224.04 1,213.07 -0.90%

Sensitive 264.69 263.71 -0.37%

Float 89.96 89.31 -0.72%

Sensitive Float 84.17 84.18 0.01%

Sub– Indices Aug

15,2019 Aug

22,2019 % Change

Banking 1,102.46 1,097.95 -0.41%

Trading 270.26 279.13 3.28%

Hotels 2,047.01 2,022.69 -1.19%

Dev. Bank 1,592.74 1,588.98 -0.24%

Hydropower 1,084.11 1,048.03 -3.33%

Finance 623.29 582.07 -6.61%

Non Life 4,894.04 4,759.17 -2.76%

Manu.& Pro. 2,576.34 2,560.64 -0.61%

Others 698.87 696.31 -0.37%

Microfinance 1,517.15 1,516.90 -0.02%

Life Insurance 5,802.70 5,702.96 -1.72%

Mutual Fund 9.96 9.91 -0.50%

Besides Sensitive index, all other indices landed on the red zone

over the week. NEPS index went down by 0.90% to close on

1213.07, Float index declined 0.72% to 89.31, Sensitive index

closed 0.37% down to 84.17 while Sensitive Float index

moved slightly up by 0.01% and closed at 84.18.

On sub-indices side, Finance lost the most and closed at 582.07.

The index lost 6.61% over the week. Hydropower and Non-life

insurance went down by 3.33% and 2.76% and closed on

1048.03 and 4759.17 points respectively. Trading was the only

sector to gain over the week. The index wen up by 3.28% and

closed at 279.13 points.

Last week, stocks of 182 companies traded on the floor where 47

stock price advanced, 114 stock prices declined and 21stocks

price remained unchanged. Average turnover of the week was

Rs. 30.9 crore. GILB gained the most as the price appreciated by

13.38% driven by stock dividend announcement of 35%, while

GLBLS was the most to lose over the week. The company re-

cently announced 8.38% stock dividend. SHL and RHPL were

the top transacted shares of the week with transaction of 10.5

crores and 9.2 crores respectively. Broker number 34 and 45 re-

mained as the top buying broker while, broker number 34, 58

captured the top 3 spot of top selling brokers. Market cap at the

end of the week stood at 15.40 Khrab. The investors l1.80 Arba

over the week.

Date Total Turnover

(Rs.) Market Cap (Million Rs.)

22-Aug-19 261,670,203.00 1,539,801.04

21-Aug-19 292,641,718.00 1,541,058.22

20-Aug-19 272,509,020.00 1,540,525.27

19-Aug-19 389,625,265.00 1,551,223.92

18-Aug-19 329,527,915.00 1,542,046.72

Stocks Previous

Week Close Weekend

Close %Change

Top Gainers

GILB 680 771 13.38%

SLBSL 676 740 9.47%

Top Losers

GLBSL 526 480 -8.75%

PICL 500 460 -8.00%

Top Transactions

Stocks Amount/Quantity

Top Turnover (Rs.)

SHL 104,951,378.00

NICA 91,426,434.00

Top Turnover (Kitta)

SHL 454,219.00

RHPL 348,067.00

Top Brokers

Market Outlook

Note: The number represents number of traded stocks

Brokers Amount (Rs.)

Top Buyer

34 188,891,254.50

45 117,209,162.08

Top Seller

34 148,861,781.00

58 85,917,934.30

Stock Price Movement Over The Week

Companies Particulars

SABSL 16,50,000 units from IPO issued listed for trading

GMFBS Proposal for 7%stock and 0.3684% cash dividend

NBBL Proposal for 26% stock and 1.368% cash dividend

ALBSL Proposal for 12% stock and 0.631% cash dividend

NAGRO Proposal for 15% cash dividend

GILB Proposal for 35% stock and 1.84% cash dividend

GLBSL Proposal for 8.387% stock and 0.441% cash dividend

NEPSE circular and Dividend Announcement

Current IPO issue

Company Units Opening Date Closing Date

NMB 50 12,00,00,000 2019-07-29 2019-08-27

NIC Asia Balanced Fund 12,50,00,000 2019-07-24 2019-08-25

Stock Stock Type Quantity Open Close

EIC Ordinary 3,83,205

2019-08-14 2019-08-25 Promoter 1,46,575

Ordinary 2,44,549.90 2019-08-28 2019-09-11 BFC

Promoter 5,57,674.57

JSLBB Ordinary 18,503 2019-08-27 2019-09-03

Right Shares Auction

Right Shares Issue

Stock Right Share ratio Book Closure Date Open Close

SLICL 10:7 2019-08-14 2019-8-25 2019-09-29

UIC 10:7 2019-08-14 2019-08-20 2019-09-23

MNBBL 10:2 2019-08-16 2019-08-29 2019-10-02

SICL 10:3 Proposal for right shares issue

GILB 1:1 2019-07-17 2019-08-06 2019-09-09

WOMI 1:1 2019-07-11 2019-07-25 2019-08-28

Quote of the Week

"You get recessions, you have stock market declines. If you don't understand that's going to happen, then you're not ready, you won't do well in the markets."

- Peter Lynch

Stocks Net profit)(’000)

(2018/19 Q4)* Net profit(’000)

(2017/18 Q4) Net Profit Growth

EPS(2018/19)

EPS(2017/18)

BVPS (Rs)

UNL 1,066,600.00 999,200.00 6.75% 1158.09 1085.26 2525.08

NIL 343,674.00 291,019.00 18.09% 29.22 24.74 195.90

CFCL 83,696.00 74,636.61 12.14% 10.16 9.31 123.60

BFC 81,708.00 44,255.00 84.63% 10.09 14.88 87.53

SIC 276,578.00 333,084.00 -16.96% 27.62 61.88 191.17

PPCL -78,648.00 -57,295.00 -8.17 -7.44 81.12

SICL 472,980.77 431,613.62 9.58% 44.73 40.82 250.17

DHPL -33,361.00 -65,785.00 -12.64 -24.92 50.17

GUFL 95,511.00 -30,428.65 11.00 -3.51 144.43

WMBF 4,896.00 41,580.42 -88% 1.84 22.85 13.67

IGI 171,215.00 168,757.00 1.46% 16.78 31.25 143.77

UIC 92,111.20 158,563.85 -41.91% 30.46 52.44 230.15

SIL 214,343.00 275,366.00 -22.16% 21.43 42.93 189.89

PRIN 266,213.00 221,569.00 20.15% 26.49 32.19 195.22

PIC 245,623.00 167,868.00 46.32% 22.86 28.74 164.05

NLICL 336,338.00 298,359.02 12.73% 11.18 18.02 130.55

NICA NP:30,53,304.07

FP:21,52,857.47 NP:13,34,861.93 NP:129% 34.56 16.62 169.41

CBL NP:760,406.00 FP:5,56,984.00

NP:6,29,899.46 NP:21% 9.50 8.68 127.98

*NP=Net Profit, FP=Free Profit

Quarterly Reports Published Last week:

Mutual Fund Financial Highlights

S.N. Mutual Fund Weekly NAV (Aug 16,2019)

Monthly NAV (16th July,2019)

Latest Market Price

Premium(+)/Discount(-) to Weekly NAV

1 GIMES1 8.90* 8.92 7.75 -12.92%

2 LEMF 8.92 9.10 7.69 -13.79%

3 LVF1 9.94 11.58 9.15 -7.95%

4 NIBLPF 8.21 8.28 7.11 -13.40%

5 NIBSF1 10.56 10.70 9.41 -10.89%

6 NMBHF1 10.04 11.01 9.75 -2.89%

7 NMBSF1 10.51 11.92 11.15 6.09%

8 NEF 9.01 9.02 8.11 -9.99%

9 SAEF 10.99* 11.03 9.71 -11.65%

10 SEF 11.09 11.24 9.04 -18.49%

11 CMF1 11.29** 11.35 9.80 -13.20%

12 NICGF 11.16* 11.18 9.76 -12.54%

*NAV as of 9th August **NAV as of 12th July

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