Daily Market Commentary

Nepse ends in green with 4.06 points gain

Published On: August 3, 2021 05:55 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU, August 3: After opening above 3100 level, a slight correction pushed the benchmark equity index towards the negative note. Nonetheless, the market pared the early losses in the second hour of trading. Movements remained uncertain thereafter, with the market ending with a slight gain of 4.06 points at 3085.07.

In the last one week of trading, the market is hovering between the level of 3050 and 3100. The market has continued to record noteworthy turnovers in the recent session. Over Rs. 10.98 billion worth of shares changed hands.

Microfinance and Investment sub-index closed at 2.22% and 1.73% correspondingly. Similarly, Banking, Finance and Manufacturing & Processing sectors close in green note with a meager increment. On the other hand, Development, Hotels & Tourism, Trading and Mutual Fund segments dipped above 1% each. Hydropower, Life Insurance, Non-Life Insurance and Others sub-indices registered modest losses. 

Arun Kabeli Hydropower Company Ltd, Universal Power Company Ltd, First Microfinance Development Bank Ltd and Citizen Investment Trust were the top turnover stocks of Monday. The respective stocks registered turnovers of Rs. 377 million, Rs. 354 million, Rs. 340 million and Rs.321 million respectively. Ridi Hydropower Development Company Ltd, Samriddhi Finance Company Ltd, Ngadi Group Power Company Ltd, Himal Dolakha Hydropower Company Ltd were among other active stocks. 

On the gainers’ front, Ghalemdi Hydro Ltd saw notable strength and rallied 10%. Gurans Laghubitta Bittiya Sanstha Ltd, First Microfinance Development Bank Ltd, Universal Power Company Ltd and Ankhu Khola Jalavidhyut Company Ltd rose by 9.98%, 9.09%, 9% and 8.42% respectively. Samriddhi Finance Company Ltd, RSDC Laghubitta Bittiya Sanstha Ltd, Union Life Insurance Company Ltd were the other gaining scrips. 

Conversely, Nepal Hydro Developers Ltd, United IDI Mardi RB Hydropower Ltd were the biggest losing scrips of the day. The hydro shares saw their share price close below 5% lower each. Laxmi Equity Fund, Himalayan Power Partner Ltd, Barun Hydropower Company Ltd, Saptakoshi Development Bank Ltd, CEDB Hydropower Development Company Ltd were among other major losers.

In terms of ARKS technical analysis, the index continued to form a small spinning top candlestick with small wicks for a second straight day reflecting indecision in the current context. The market is hovering between the level of 3,050 and 3,100. Hence, some sideways movement can be expected in the coming session with monetary policy unveiling on the cards. Currently, the 3,080 level is acting as a support level in the present moment. Whereas an immediate resistance lies at 3,100 level. The market closing above the aforementioned resistance level with significant turnover in the coming session will validate the market making new highs.

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)

Leave A Comment