Daily Market Commentary

Stocks recoup 24 points partially erasing week’s losses

Published On: July 8, 2021 07:20 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, July 8: The equity market opened Thursday’s session with a marginal dip and traded in red for most of the beginning trading hour. Nonetheless, stocks saw strength after mid-session with the Nepse index registering a steady advance in the afternoon. The last trading day of the week saw the benchmark close with a daily gain of 23.97 points at 2,825.11.

After closing the first four trading days of the week with modest losses, stocks found footing in the last session of the week. With the advance seen in broad based index, turnover also rose marginally. Over Rs. 4.82 billion worth of shares changed hands on the day. 

Only ‘Others’ and Trading sub-indices ended the day in red, while all other sectors closed the day in positive territory. Finance stocks saw major strength with the respective sub-index closing more than 3% higher. Development Bank sector jumped 2.12%. Hydropower, Microfinance and Investment sub-indices registered advances of over 1%. Other composite segments eked out modest gains.

Shares of Nepal Bank Ltd were traded the most as over Rs. 215 million worth of the bank scrip changed hands. Himalayan Distillery Ltd and NIC Asia Bank Ltd’s shares were also actively traded logging in transactions of Rs. 175 million and Rs. 168 million, respectively. Nepal Infrastructure Bank Ltd, Upper Tamakoshi Hydropower Ltd, Nabil Bank Ltd and Nepal Reinsurance Company Ltd were among other heavily traded scrips.

Guheshwori Merchant Bank & Finance Co. Ltd was the biggest gaining stock on Thursday. The finance company saw its share price surge 9.47%. Joshi Hydropower Development Company Ltd, Ghalemdi Hydro Ltd, Union Hydropower Ltd, Multipurpose Finance Ltd and Civil Laghubitta Bittiya Sanstha Ltd also jumped more than 5%. Samriddhi Finance Company Ltd, Panchthar Power Company Ltd, Khani Khola Hydropower Co. Ltd were among other major advances adding more than 5% apiece. 

Conversely, Corporate Development Bank Ltd suffered the most with the scrip giving up more than 3.61%. Nepal Telecom Ltd, CEDB Hydropower Development Company Ltd and NLG Insurance Company Ltd also came under pressure with declines of over 1% each. Standard Chartered Bank Ltd, Taragaon Regency Hotel Ltd and Salt Trading Corporation fell marginally.

As per the ARKS technical analysis, the index formed a small bullish spinning top candlestick suggesting lack of conviction in the equity market. Nonetheless, a long lower wick suggests that buyers were able to push the prices higher indicating a possibility of shift in momentum. 2,800 psychological mark has continued to act as a support where further recovery with volume can see the index stride towards 2,900 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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