Daily Market Commentary

Nepse ends on a fresh high but gains remain modest

Published On: April 5, 2021 07:16 PM NPT

KATHMANDU, April 5: The Nepalese stock market opened Monday’s session in green but a steady downfall saw the Nepal Stock Exchange (Nepse) index fall around 17 points in the morning. After recovering the losses at mid-day, the benchmark traded flat throughout the afternoon. At the close of the session, Nepse closed a little changed at 2,658.75 – up 1.13 points against the previous close.

Monday’s gain also marks a fifth straight day of advance as Nepse ended on a new high for a second consecutive session. However, the buying pressure has fairly subsided with the index registering minor gains in the sessions of late. Turnover also dropped reflecting some indecisiveness in the current juncture. Over Rs. 7.30 billion worth of equities changed hands.

On the sectoral front, Trading and Hotels & Tourism indices led the list of top gainers. The respective sub-groups rose 4.39% and 3.24%. Hydropower and ‘Others’ sub-indices rose over 1% each. Microfinance, Manufacturing & Processing and Mutual Fund sectors also inched higher. On the other hand, Investment and Non-Life Insurance groups fell 0.84% and 0.75%. Banking, Development Bank, Life Insurance and Finance sectors also ended marginally lower.

In terms of market activity, shares of Upper Tamakoshi Hydropower Ltd were traded the most with turnover of Rs. 348 million. IME General Insurance Ltd and Nepal Infrastructure Bank Ltd followed suit with turnover of Rs. 313 million and Rs. 289 million. Himalayan General Insurance Ltd and Nepal Telecom Ltd, meanwhile, saw turnovers of Rs. 252 million and Rs. 190 million.

The day’s top gainers were NIC Asia Laghubitta Bittiya Sanstha Ltd, Radhi Bidyut Company Ltd, Womi Microfinance Bittiya Sanstha Ltd and Sanima General Insurance Ltd, which rallied to hit the upper circuit level of 10%. Himalayan General Insurance Ltd, Chandragiri Hills Ltd, Upper Tamakoshi Hydropower Ltd and Sanjen Jalavidhyut Company Ltd were the other major gainers with advance of over 5% each.

On the other hand, Gurkhas Finance Ltd’s shares came under pressure and tumbled 4.12%. Shree Investment & Finance Co. Ltd. and Swabhimaan Laghubitta Bittiya Sanstha Ltd also corrected sharply and dropped over 3% each. Saptakoshi Development Bank Ltd, Lumbini General Insurance Ltd and Sagarmatha Insurance Company Ltd suffered losses of 2.94%, 2.82% and 2.67%. Premier Insurance Company Ltd, Suryodaya Laghubitta Bittiya Sanstha Ltd and Ghalemdi Hydro Ltd were among other major decliners.

The index, as per the ARKS technical analysis, formed a bearish candlestick after closing below the opening level. However, the index managed to close slightly higher compared to the previous close. This suggests slight loss of momentum of late pointing towards possibility of some consolidation or correction in the sessions ahead. 2,600 line will be the key support level to be watched.

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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