Daily Market Commentary

Nepse ends in green as most sectors see gains

Published On: August 4, 2021 05:42 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU, August 4: The Nepal Stock Exchange (Nepse) index shot up in the morning on Tuesday before giving up early gains partially at mid-day. Stocks traded flat for most of the afternoon session. Nonetheless, a steady advance in the closing hours saw the index close firmly above 3,100 mark. At the close, the benchmark rose 26.02 points to settle at 3,111.09.

The stock market saw green on the day after consolidating below 3,100 line for four consecutive days. Turnover has also remained upbeat of late. Over Rs. 11 billion worth of shares changed hands. Tuesday’s advance was mainly driven by strength seen in majority of the sectors. 

Only Mutual Fund and Development sectors ended the day in red. Microfinance segment led the day’s rally with the sub-index ending almost 4% higher. Trading and Hydropower sub-indices saw strength with gains of over 2% apiece. All other composite sectors ended the day firmly higher.

Api Power Company Ltd and Ngadi Group Power Ltd were the top turnover stocks of the day. The respective sectors saw turnovers of Rs. 468 million and Rs. 433 million, respectively. First Microfinance Laghubitta Bittiya Sanstha Ltd, Swabalamban Laghubitta Bittiya Sanstha Ltd and NIrdhan Utthan Laghubitta Bittiya Sanstha Ltd and Chhimek Laghubitta Bittiya Sanstha Ltd were among other active stocks. 

Panchthar Power Company Ltd and Ru Ru Jalvidhyut Pariyojana Ltd shot up by exactly 10%. Jeevan Bikas Laghubitta Bittiya Sanstha, Union Life Insurance Company Ltd, Ghalemdi Hyropwer Ltd, Liberty Energy Company Ltd and Swabalamban Laghubitta Bittiya Sanstha Ltd were the other major winners with rallies of almost 10% each.

Unilever Nepal Ltd, Nabil Balanced Fund -2 and NIBL Pragati Fund came under considerable pressure with declines of 3.79%, 2.33% and 2.04%. Green Development Bank Ltd, Samriddhi Finance Company Ltd and Karnali Bikas Bank Ltd fell over 1% apiece. 

In terms of ARKS technical analysis, the index formed a small bullish candlestick breaking above the 3,100 mark. Hence, bulls remained in control of the market in the session. Further, Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) both reflect short term uptrend in action. Nonetheless, some caution must be taken while taking buying position as indicators are also showing overbought reading which points towards possibility of some correction.

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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