Daily Market Commentary

Stocks inch higher after recovering intraday loss of almost 40 points

Published On: November 25, 2021 06:04 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Nov 25: The benchmark witnessed a sharp fall in the morning with the market shedding almost 40 points by mi-day. However, buyers prevailed in the latter trading hours. The Nepal Stock Exchange (Nepse) index saw a steady advance with Nepse inching 1.89 points higher to end Wednesday’s session at 2,735.01.

After a series of dreary sessions, the index extended its losses but managed to hold its ground close to the opening level. Uncertainty surrounding the equity market also resulted in another day of modest turnover. A below par transaction of Rs. 4.22 billion was witnessed in the session. 

Most of the sectors ended higher. Finance segment rose the most with the sub-index adding 1.31%. Development Bank and Hydropower sub-indices followed suit with gains of 0.77% and 0.75%. All other sectors saw gains, barring Trading, banking and Life Insurance groups which saw minor declines. 

Nepal Telecom Ltd and ICFC Finance Ltd were the most actively traded shares with respective turnovers of Rs. 262 million and Rs. 187 million. Api Power Company Ltd, National Hydropower Company Ltd and IME General Insurance Company Ltd logged in turnovers of Rs. 171 million, Rs. 140 million and Rs. 128 million. 

Mailung Khola Jal Vidhyut Company Ltd shot up by 10% followed by Karnali Bikas Bank Ltd and Panchakanya Mai Hydropower Ltd which jumped over 6% each. Joshi Hydropower Development Company Ltd, Sana Kisan Bikas Bank Ltd and IME General Insurance ltd closed around 4% higher.

Gurkhas Finance Ltd, Unnati Sahakarya Laghubitta Bittiya Sanstha Ltd, Terathum Power Company Ltd and NIC Asia Laghubitta Bittiya Sanstha Ltd were the major decliners with losses of over 2% apiece. Summit Laghubitta Bittiya Sanstha Ltd, Swabhimaan Laghubitta Bittiya Sanstha Ltd and Bottlers Nepal Terai Ltd also came under pressure. 

As per the ARKS technical analysis, the index formed a doji candlestick with long lower wick. The doji pattern indicates indecision, while the long lower wick suggests buyers taking control in the current zone. A rebound from 2,700 mark also indicate possibility for further recovery. Nonetheless, increasing volumes in the coming sessions will be crucial to confirm a sustainable rebound. Main technical indicators reflect neutral short term momentum. 

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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