Daily Market Commentary

Broad rally helps Nepse end above 2,900

Published On: September 12, 2021 07:15 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Sept 12: The equity market saw upbeat trading since the beginning of Sunday’s trading session. The Nepse index rose more than 40 points in the morning, before pulling back to 2,900 within the first hour of trading. Stocks continued to advance in the latter trading hours with the benchmark closing 71.43 points higher at 2,947.42.

Following a highly volatile week, where Nepse gyrated by over 200 points, the local equity market is looking to find some footing, with upbeat gains led by energy stocks. All other sectors also saw buying pressure as Nepse traded in positive territory throughout the session. Turnover improved slightly with almost Rs. 9.44 billion worth of shares changing hands.

Barring mutual fund sector, all other sub-indices ended in positive territory. Hydropower and Development Bank sectors were the leaders with gains of 6.47% and 5.13%. Manufacturing & Processing and Finance sub-indices also jumped by over 4% apiece. All other segments saw strength, while Banking sub-group rose 1.25%.

Shares of Arun Valley Hydropower Development Company Ltd and United Modi Hydropower Ltd were traded the most with turnovers of Rs. 738 million and Rs. 451 million. Api Power Company Ltd, National Hydropower Company Ltd and Upper Tamakoshi Hydropower Ltd, subsequently, posted turnovers of Rs. 315 million, Rs. 293 million and Rs. 257 million. Other energy scrips followed suit.

National Hydropower Company Ltd, Rastriya Beema Company Ltd and First Microfinance Laghubitta Bittiya Sanstha Ltd were the day’s biggest gainers with each scrip rallying to hit the upper circuit of 10%. Similarly, Api Power Company Ltd, Arun Kabeli Power Ltd and Chhyangdi Hydropower Ltd closed 10% higher.

On the other hand, Rairang Hydropower Development Company Ltd and Kalika Laghubitta Bittiya Sanstha Ltd fell 2.24% and 1.19%, respectively. Excel Development Bank Ltd, Corporate Development Bank Ltd and Unilever Nepal Ltd fell marginally.

As per the ARKS technical analysis, the index formed a strong bullish candlestick recouping two days of losses. Hence, further rebound can see the index test 3,000 mark. Dipping volumes, meanwhile, point towards possibility of consolidation. Momentum indicators suggest that the sentiment is on the verge of shifting in favor of bulls. However, further confirmation with green candlestick and increase in volumes will substantiate Nepse’s recovery.

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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