Daily Commentary: Nepse finishes 7.21 points lower

Published On: September 29, 2020 09:30 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Sept 29: The stock market remained under pressure throughout Tuesday’s trading session as the Nepal Stock Exchange (Nepse) index dropped more than 10 points in the initial trading hour. However, the market managed to trade above the crucial 1550 points level in the latter trading hours.  In the end, Nepse benchmark index closed 7.21 points lower at 1553.62 points.
The exchange continued to saw slight correction in the Tuesday trading session. In the meantime, market activity remained below Rs 2 billion mark.  Only Rs 1.82 billion worth of shares were traded on the day. 
Most of the sectors ended the day on a slight negative side. Trading stocks suffered the most and shed 2.24 %. Banking, Hotels, Development Bank, Finance, Non-Life Insurance, Others, Microfinance and Life Insurance sub-groups suffered minor losses.  On the other hand, the Hydropower index led the advances with a gain of 2.19%. Manufacturing &Processing and Mutual fund sub- indices saw a meager increment.
Shares of Arun Kabeli Power Ltd witness massive transactions. Over Rs 174 million worth of the hydropower’s shares were traded on Tuesday. It was followed by Himal Dolakha Hydropower Development Company Ltd which witnessed a turnover of Rs 106 million. Nepal Reinsurance Company Ltd and Arun Valley Hydropower Development Company Ltd registered the total transaction worth Rs 78 million and Rs 70 million, respectively. Nepal Bank Ltd, Universal Power Company Ltd and Api Power Company Ltd were the other active stocks on the day.
On the gainer’s front, Joshi Hydropower Company Ltd remained locked in the upper circuit limit of 10%. Likewise, 11 companies closed above the 9% which includes shares of Himalaya Urja Bikas Company Ltd, 
Ankhu Khola Jalvidhyut Company Ltd, Ghalemdi Hydro Ltd, United Modi Hydropower Ltd, Universal Power Company Ltd, Nepal Finance Ltd, Panchakanya Mai Hydropower Ltd, Union Hydropower Ltd,
Chhyangdi Hydropower Ltd,Himal Dolakha Hydropower Company Ltd and Dibyashwori Hydropower Ltd.

Conversely, shares of Support Microfinance Bittiya Sanstha Ltd, Reliance Finance Ltd and Shree Investment Finance Co. Ltd came under considerable pressure and dropped by 3.62%, 3.55% and 3.30 % respectively. Similarly, Salt Trading Corporation, Infinity Laghubitta Bittiya Sanstha Ltd, Guheshowori Merchant Bank & Finance Co. Ltd, Citizen Bank International Ltd, Nepal Credit and Commercial Bank Ltd and ICFC Finance Ltd closed over 2% lower each.

On the technical front, the equity market formed a bearish candlestick on the daily timeframe which reflects a slight weakness. However, the index has still managed to hold the ground above 1,550-point which acts as strong psychological support in the recent sessions. Whereas, a drop below this support level might suggest the possibility of further decline. 
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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