Daily market commentary

Nepse closes above 2,500 mark on record volume

Published On: February 7, 2021 06:45 PM NPT

KATHMANDU, Feb 7: The equity market opened week on an upbeat note as stock traded in green since the beginning of Sunday’s trading session. The Nepal Stock Exchange (Nepse) index climbed over 2,500 mark in the morning, but pulled back marginally. However, with notable buying pressure seen in the afternoon, the benchmark finished Sunday’s session with a gain of 48.97 points at 2,524.23.

The stock market has continued to see enthusiasm from investorswith Nepse reaching fresh highs in consecutive sessions. With microfinance and hydropower segments stretching gains, overall volumes also shot up notably. Nepse posted a record turnover of over Rs. 10 billion on Sunday.

Microfinance, Non-Life Insurance, Hydropower and Life Insurance sectors were the leading performers. While microfinance sub-index jumped 7.76%, the latter segments rose more than 3% each. ‘Others’ and Trading sub-indices climbed 2.7% and 2.31%. Finance, Hotels and Manufacturing & Processing stocks also ended in green. Mutual Fund, Banking and Development sectors ended marginally lower.

Shares of Himalayan Distillery Ltd were traded the most with a turnover of over Rs. 531 million. Nepal Life Insurance Company Ltd and Shikhar Insurance Company Ltd’s shares were also actively traded with turnovers of Rs. 317 million and Rs. 314 million. Global IME Bank Ltd, Chhimek Laghubitta Bittiya Sanstha Ltd, Deprosc Laghubitta Bittiya Sanstha Ltd and Nepal Reinsurance Company Ltd were among other actively traded stocks.

Mostly microfinance stocks dominated the list of major advances with many remaining locked in the upper circuit of positive 10%. Besides, Citizen Investment Trust, Manjushree Finance Ltd and other hydropower stocks also saw gains of over 9% each.

Nepal Finance Ltd, on the other hand, tanked 6.27% followed by Ngadi Group Power Ltd, which lost 4.74%. Sunrise First Mutual Fund fell 3.02%, Narayani Development Bank Ltd dropped 2.79% and Himalayan Distillery Ltd lost 2.55%. Dibyashwori Hydropower Ltd, Nepal Credit and Commerce Bank Ltd and Shiva Shree Hydropower Ltd were among other major laggards.

In terms of ARKS technical analysis, the market formed a strong bullish candlestick, which helped the index register its maiden close above 2,500 mark. Hence, 2,500 level might act as an immediate support. Given the index manages to hold ground above the aforementioned level, some consolidation or further advance can be expected. On the other hand, a break below 2,500 can see the index test support at around 2,380.

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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