Daily market commentary

Nepse sheds 51.23 points

Published On: March 14, 2021 07:00 PM NPT

KATHMANDU, March 14: The benchmark equity index witnessed feeble momentum at the starting of the week and remained on the negative side of the spectrum in the entire trading session. In the end, the market closes at 2,407.26 – down 51.23 against Thursday’s close.

Due to the ongoing political instability in the country, investors are still holding back from taking any major buying positions in the current context. However, the bourse recorded a total turnover of Rs. 4.95 billion.

Majority of the sectors ended on a lower note. Trading, others and Non-life Insurance sector were the day’s major losers. The group’s sub-index tumbled 5.41%, 4.79% and 3.01% respectively. Microfinance, life Insurance and Investment sub-indices sector fell above 2% whereas Banking, Development Bank, Finance, Manufacturing & Processing and Mutual Fund sectors lost above 1% piece.

Shares of Upper Tamakoshi Hydropower Company Ltd were traded the most with a turnover of Rs. 445 million. Nepal Infrastructure Development Bank Ltd and Nabil Bank Ltd posted turnovers of Rs. 275 million and Rs. 206 million correspondingly. Nepal Life Insurance Co. Ltd, Global IME Bank Ltd, Arun Valley Hydropower Company Ltd and Nepal Doorsanschar Company Ltd were among other heavily traded stocks.

Chandragiri Hills Ltd hit the upper circuit limit of 10% on the day.  Mainly energy stocks led the list of winners on Sunday. Upper Tamakoshi Hydropower Company Ltd, Panchakanya Mai Hydropower Ltd, Ghalemdi Hydro Ltd and Rairang Hydropower Company Ltdalso saw gains of over 9% each. Similarly, Mountain Energy Company Ltd, Nepal Investment Bank ltd and Mahuli Samudayik Laghubitta Bittiya Sanstha Ltd were the other gaining scrips for the day.

On the other hand, Himalayan Power Partner Ltd and Nepal Hydro Developers Ltd suffered the most as the stocks dropped 9.86% and 7.95%, respectively. Nepal Doorsanschar Company Ltd, Shikhar Insurance Company Ltd and  Nepal Insurance Company Ltd also dropped by over 6% each. Likewise, Narayani Development Bank Ltd, Salt Trading Corporation Ltd, Swabalamban Laghubitta Bittiya Sanstha Ltd were the other major loser with declines of over 5% each.

As per the ARKS technical analysis, the market formed a strong bearish candlestick on the day. Technical indicators also suggest that selling pressure is prevailing in the current market. However, the market has managed to close above the 2400 psychological level. A breach below 2400 mark can see some corrective move towards downside to testing the immediate support level of 2360, while another day of gain supported by significant volume can see the index validate the rebound.

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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