Daily Market Commentary

Nepse sheds 32 points

Published On: April 21, 2021 07:20 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, April 21: The equity market witnessed selling pressure throughout Wednesday’s session. After opening higher in the preopening session, the Nepal Stock Exchange (Nepse) index pulled back to trade in red with the beginning of the trading session. Stocks struggled further in the afternoon as the benchmark closed the day 32.41 points lower at 2,632.21.

Investors are still holding back from taking any major buying positions in the current context. Likewise, the bourse recorded a total turnover of only Rs. 5.77 billion.

Most of the traded sectors maintained negative bias. Only Mutual fund ended the day in green with a slight increment of 0.12%. On the other hand, the Development segment tumbled 2.1% followed by Banking, Hydropower, Finance, Non-Life Insurance, Manufacturing & Processing, Microfinance and Investment groups, which lost above 1% each. All other segments closed the day in negative territory.

Nepal Infrastructure Bank Ltd and Himal Dolakha Hydropower Company Ltd’s shares were traded the most with a turnover of over Rs. 254 million and 220 million respectively. Manjushree Finance Ltd, API Power Company Ltd, Nabil Bank Ltd and NIC Asia Laghubitta Bittiya Sanstha Ltd also witnessed active transactions with a turnover of Rs. 183 million,Rs. 168 million, Rs. 155 million and Rs. 142 million correspondingly. Upper Tamakoshi Hydropower Company Ltd, NIC Asia Bank Ltd and Arun Kabeli Power Ltd were among other actively traded stocks.

Jyoti Life Insurance Ltd’s shares locked in the upper circuit limit of 10% on Wednesday. Likewise, Mahila Laghubitta Bittiya Sanstha Ltd, Green Development Bank Ltd and Himal Dolakha Hydropower Company Ltdrallied above 9.8% each.  Union Hydropower Ltd, Janautthan Laghubitta Bikas Bank Ltd, API Power Company Ltd and Chhyangdi Hydropower Company Ltd also shot by 7.25%, 5.34%, 3.69% and 3.11% respectively.

On the other hand, Liberty Energy Company Ltd and Himalayan Power Partner Ltd fell by 5.17% and 4.19% respectively. Narayani Development Bank Ltd, ICFC Finance Ltd, Panchthar Power Company Ltd, Global IME Laghubitta Bittiya Sanstha Ltd, National Hydro Developers Ltd and NRN Infrastructure and Development Bank Ltd declined more than 3% each.

As per the ARKS technical analysis, the index formed a bearish candlestick on the day and also failed to hold its ground above2,650 level. Hence, some correction is on the cards. Further, with volumes remaining under par both buyers and sellers remained relatively passive. While the major key support of the market can be taken as 2600 mark.

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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