Daily Commentary: Nepse ends in green for fourth consecutive day

Published On: September 14, 2020 07:52 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Sept 14: On Sunday, the benchmark Nepal Stock Exchange (Nepse) index traded for only a few minutes in the beginning trading hour. Thereafter the market halted its trading till mid-day due to some technical difficulties. However, after the resumption, the index managed to sustain its positive momentum towards the end of the session.  In the end, the market closed the day at 1537.25 points-up 16.56 points against the session earlier.

With the day’s gain, the bourse has witnessed advances for the fourth consecutive day. The index posted an upbeat turnover in terms of market activity. Rs. 3.38 billion worth of securities were exchanged.

Most of the sectors closed on a positive territory excluding trading, mutual funds and finance sectors. Their sub-indices decline by 2.83%, 0.76% and 0.43% respectively. On the other hand, Non-Life Insurance stocks saw strength as the group’s sub-index jumped 4.05%. Similarly, Hotels, Hydropower and Life insurance sub-indices also saw gains and closed 3.79%, 3.64% and 2.98% correspondingly

Furthermore, Banking, development Bank, manufacturing & Processing, Others and Microfinance sectors inched marginally higher. Nepal Reinsurance Company Ltd’s shares were the most heavily traded in the day with a total turnover of Rs. 243 million. Similarly, Nepal Life Insurance Company Ltd, Citizen Investment Trust, Shivam Cements Ltd, Premier Insurance Company Ltd and Neco Insurance Co. Ltd posted turnover of over Rs. 193 million, 164 million, 107 million, 102 million and 101 million respectively. Insurance stocks, Asian Life Insurance Co. Ltd, Union Insurance Co. Nepal Ltd, Shikhar Insurance Co. Ltd and Nepal Insurance Co. Ltd were among other active equities on Sunday.

Five stocks remained locked closer to the upper circuit limit of 10 %. Reliance Life Insurance Company Ltd’s shares shot up by 9.98 %, while NRN LaghubittaBittiya Sanstha Ltd, NRN Infrastructure and Development Ltd, Radhi Bidhyut Company Ltd, Arun valley Hydropower Company Ltd surged by 9.95%, 9.77%, 9.63% and 9.24% correspondingly. IME General Insurance Ltd, Mountain Hydro Power Company Ltd, Synergy Power Development Ltd and Union Hydropower Ltd were among other gaining stocks on the day.

On Contrary, NABIL Balance Fund-2 was the worst performer of the day. Its share price gave up more than 9%. Next on the list, Dibyashwori Hydropower Ltd’s share tanked 5.17%.Ankhu Khola Jalvidhyut Company Ltd, Citizen Investment Trust and Unnati Sahakarya Laghubitta Bittiya Sanstha Limited also came under considerable pressure and closed over 4 % lower.

As per the ARKS technical analysis, the market formed a bullish candlestick for a fourth straight day which reflects positive momentum in the market. Technical indicators like Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) also suggest strong uptrend in action backed by significant volume on the day. The index has also managed to hold above 1500 points level, which acts as strong psychological support whereas the market may face some immediate resistance at around 1,550 point’s level.

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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