Daily market commentary

Nepse climbs 17 points as uptrend extends

Published On: January 18, 2021 07:45 PM NPT

KATHMANDU, Jan 18: The Nepal Stock Exchange (Nepse) index opened Monday’s session in green but corrected slightly in the morning. Nonetheless, the equity market continued to see notable strength as the index peaked at 2,340 at mid-day. After a small retracement in the closing hours, Nepse ended the day at 2,332.32 – up 17.31 points against the day earlier.

The index marked its eight straight day of gain as the stock market continued to see massive investor enthusiasm. New funds as well as reinvestments of gains have continued to push the market towards fresh highs. Turnover also remained upbeat with over Rs. 6.31 billion worth of shares being traded on the day.

All segments ended the day in green, while only Hydropower sector edged lower. Major gains came from Trading and Hotels segments, which shot up by 6.58% and 5.82%. Microfinance, Finance, Development Bank and Mutual Fund sub-indices also closed over 2% higher.

Shares of Prabhu Bank Ltd led the list of active stocks. Over Rs. 334 million worth of the bank shares changed hands. Nepal Telecom Ltd, NIC Asia Bank Ltd and Nepal Reinsurance Company Ltd followed with turnovers of Rs. 268 million, Rs. 202 million and Rs. 171 million. Nepal Life Insurance Company Ltd, Surya Life Insurance Company Ltd and Life Insurance Corporation Nepal were the other heavily traded shares.

Civil Laghubitta Bittiya Sanstha Ltd, Bishal Bazar Company Ltd, Gurkhas Finance Ltd, Narayani Development Bank Ltd and Swabhimaan Laghubitta Bittiya Sanstha Ltd led the advances with rallies of 10% apiece. Other microfinance stocks followed suit. Summit Laghubitta Bittiya Sanstha Ltd, Gurans Laghubitta Biitiya Sanstha Ltd, Aarambha Chautari Laghubitta Bittiya Sanstha Ltd and Samudayik Laghubitta Bittiya Sanstha Ltd also jumped more than 9% on the day.

On the other hand, Samriddhi Finance Company Ltd and Everest Bank Ltd Convertible Preference Share suffered losses of around 4%. Shangrila Development Bank Ltd, Goodwill Finance Co. Ltd and Mirmire Microfinance Development Bank Ltd shed 3% apiece. IME General Insurance Ltd, Saptakoshi Development Bank Ltd and Radhi Bidyut Company Ltd were the other major decliners.

As per the ARKS technical analysis, the market formed a small doji candlestick on the daily timeframe suggesting indecision. Both buyers and sellers negated each other. However, with the index making fresh intraday and closing highs, the market is yet to show signs of losing its steam. Given the market maintains its footing above the 2,300 mark in the coming sessions, another upward movement towards 2,400 level can be expected. On the lower side, a strong support for the equity market lies at 2,250 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)


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