Daily Market Commentary: Nepse inch close to 2,200 mark

Published On: January 7, 2021 06:15 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Jan 7: The equity market saw upbeat trading in the last trading session of the week. After climbing more than 15 points in the morning, the index plateaued around 2,190 mark. Stocks traded flat for most of the afternoon. At Thursday’s close, Nepse rose 15.91 points to end at 2,194.49.

The equity market ended the week on a positive note extending Wednesday’s gains. Consequently, the benchmark marked its fresh high ending just shy of the 2,200 mark. Investors continued to take buying positions as the uptrend is yet to show signs of losing steam. Turnover also improved on the day. Over Rs. 5.87 billion worth of securities changed hands.

Trading sector saw considerable strength. The group’s sub-index rose 4.79%. Manufacturing & Processing sub-index followed suit with a 2.06% gain. Non-Life Insurance, Microfinance and Finance sectors, meanwhile, registered gains of over 1% each. All other segments ended higher, barring ‘Others’ sector which fell marginally.

In terms of market activity, Prabhu Bank Ltd’s shares were traded the most. The bank stock witnessed a turnover of Rs. 317 million. Nepal Reinsurance Company Ltd and Chilime Hydropower Company Ltd witnessed transactions of Rs. 274 million and Rs. 248 million. Nepal Life Insurance Company Ltd, NIC Asia Bank Ltd and Himalayan Distillery Ltd were the other top turnover stocks on Thursday.

Multipurpose Finance Company Ltd saw the biggest percentage gain of the day. Its share price rallied 10%. Mirmire Laghubitta Bittiya Sanstha Ltd, IME General Insurance Ltd, Narayani Development Bank Ltd and Prabhu Life Insurance Company Ltd’s shares also saw notable buying pressure with each scrip rallying over 9% each.

On the other hand, Everest Bank Ltd Con. Pref. Share suffered the most. The scrip closed 3.81% lower. Energy stocks also corrected with Khanikhola Hydropower Company Ltd, Kalika Power Company Ltd, Rairang Hydropower Development Company Ltd, Rasuwagadhi Hydropower Company Ltd and Panchthar Power Company Ltd registered declines of over 2% each.

In terms of ARKS technical analysis, the market formed a small bullish candlestick on the daily timeframe stretching gains for a second consecutive day. Though the gains are modest in the sessions off late, the index holding ground without retracements suggest that the market will likely stretch its uptrend. Momentum indicators also reflect buyers in control of the market. 2,200 psychological mark can be taken as an immediate resistance for the equity market.

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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