Daily Market Commentary

Daily turnover jumps as Nepse ends higher

Published On: May 13, 2021 09:16 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, May 13: The Nepal Stock Exchange (Nepse) index traded slightly higher in the morning and continued to advance gaining as much as 17 points at mid-day. Stocks corrected marginally in the afternoon and hovered in positive territory throughout the latter part of the trading session. At the close, Nepse registered a gain of 10.13 points to end last trading day of the week at 2,684.01.

The index has continued to see small movements of late as investors are trading cautiously refraining from taking major moves. Nonetheless, market participation remained upbeat with a turnover of over Rs. 7 billion. 

Following the broad rally, most of the sectors ended in green. Finance and Development Bank segments were the leaders with the respective sub-indices gaining 4.68% and 2.51%. Hydropower sub-index also saw strength and jumped 1.41%. All other segments ended in green, barring Trading, Hotels and Tourism, Investment and Manufacturing & Processing groups, which ended marginally lower. 

Nepal Reinsurance Company Ltd led the list of top turnover stocks as almost half a billion worth of the equities changed hands. National Hydropower Company Ltd and Arun Kabeli Power Ltd followed suit with turnovers of Rs. 257 million and Rs. 216 million. Himal Dolakha Hydropower Company Ltd, Nepal Investment Bank Ltd and Hydroelectricity Investment and Development Company Ltd followed suit with turnovers of Rs. 191 million, Rs. 183 million and Rs. 166 million.

Dibyashwori Hydropower Ltd and Samata Laghubitta Bittiya Sanstha Ltd were the day’s major gainers with rallies of 10% each. Bishal Bazar Company Ltd, Ru Ru Jalbidhyut Pariyojana Ltd, Shangrila Development Bank Ltd, Progressive Finance Ltd, Joshi Hydropower Development Company Ltd, Samriddhi Finance Ltd and Ankhu Khola Jalvidhyut Company Ltd were among other major gainers posting advances of over 9% each. 

Conversely, Ridi Hydropower Development Company Ltd and Rastriya Beema Company Ltd corrected sharply and fell around 2% each. Chhyangdi Hydropower Ltd and Civil Laghubitta Bittiya Sanstha Ltd dipped 1.9%. United Modi Hydropower Ltd, Mahila Laghubitta Bittiya Sanstha Ltd, Gurans Laghubitta Bittiya Sanstha Ltd and Mountain Hydro Nepal Ltd were among other major decliners of the day. 

As per the ARKS technical analysis, the market formed a bearish candlestick after opening higher in the morning. Nonetheless, the index has settled over 10 points above the previous close suggesting momentum slightly favoring bulls. Further, increased market participation has validated the rebound from around 2,600 mark. Hence, more bullish move can be expected in both short term and medium term. A minor resistance for the equity market lies as 2,700 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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