Daily Market Commentary

Nepse caps off week with 20 point’s loss

Published On: March 25, 2021 08:00 PM NPT

KATHMANDU, March 25: Stocks opened Thursday’s session in green but gave up gains in the latter hours. The Nepal Stock Exchange (Nepse) traded flat in the afternoon before the selling pressure dragged the benchmark lower. A decline in the closing half of the session pulled the benchmark 21.29 points lower to settle at 2,548.97.

The index gave up some of its prior day’s gain on the back of short-term profit booking by traders. Hence, sellers prevailed on the day with the index showing some signs of consolidation. Nonetheless, turnover remained upbeat with over Rs. 6.5 billion worth of securities being traded on the day.

The majority of the sectors ended the day in a red note. Banking, Hydropower, Others and Microfinance sub-indices came under pressure and dropped over 1% each. Development Bank, Finance, Non-life Insurance, Manufacturing & Processing, Life insurance and Mutual Fund segments saw minor losses. On the other hand, gains came from Hotels and Tourism, Trading and Investment sub-indices, which rose 4.45%, 3.94% and 1.16%, respectively.

Shares of Nepal Infrastructure Bank Ltd were traded the most with turnover of Rs. 910 million. Upper Tamakoshi Hydropower Company Ltd, Siddhartha Insurance Ltd and Nepal Bangladesh Bank Ltd posted turnovers of Rs. 269 million, Rs.235 million and Rs.229 million, correspondingly. Neco Insurance Company Ltd, Hydroelectricity Investment and Development Company Ltd, Nepal Life Insurance Company Ltd and Nepal Credit and Commerce Bank Ltd were among other heavily traded stocks.

Chandragiri Hills Ltd led the list of gaining stocks with almost 10% surge in its share price. Support Microfinance Bittiya Sanstha Ltd and Womi Microfinance Bittiya Sanstha Ltd jumped 9.97% and 9.94% on the day. Siddhartha Insurance Ltd and Mountain Hydro Nepal Ltd shot above 7% each. Shares of Bottlers Nepal Terai Ltd, Mahila Laghubitta Bittiya Sanstha Ltd, Rairang Hydropower Company Ltd and Nepal Infrastructure Bank Ltd were the other gaining scrips for the day.

On the other hand, Nepal Bangladesh Bank Ltd and NIBL Pragati Fund suffered the most as the stocks dropped 6.14% and 5.50%, respectively. Himalaya Urja Bikas Company Ltd, Sanjen Jalabidhyut Company Ltd and Rasuwagadhi Hydropower Company Ltd also fell above 4% apiece. Likewise, shares of Himal Dolakha Hydropower Company Ltd, Kalika Power Company Ltd, Ridi Hydropower Development Company Ltd and Sarathi Nepal Laghubitta Bittiya Sanstha Ltd were the other major losers with declines of over 3% each.

In terms of ARKS technical analysis, the buying pressure lost some steam after a sharp rebound of 200 points from lower to upper extremes of the month. An immediate support lies at 2,500 mark, which will be crucial for gauging the market’s short-term uptrend. A breach of this level towards downside can point towards a possibility of a deeper correction. However, given the market consolidates above 2,500, another upward move towards 2,600 can be expected.

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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