Daily Market Commentary

Nepse climbs higher, but volumes dip

Published On: February 17, 2021 08:00 PM NPT

KATHMANDU, Feb: Despite opening Wednesday’s session in green, the index fell in the morning and traded briefly in red. However, with bank stocks seeing upbeat movement, the market traded in positive territory throughout the afternoon. At the close, Nepse ended 9.94 points higher at 2,611.45.

The index has continued to see upward movement on the back of gains coming from different sectors. While, microfinance, hydropower, insurance and other sectors corrected, heavyweight banks helped the index stretch its gaining streak for a third straight day. The market has also continued to see optimism as interest rates has continued to drop to new lows. Over Rs. 8 billion worth of shares were traded in the session.

Sectors ended mixed. Banking sub-index jumped 1.58%. Trading, Mutual Fund, Others and Development Bank sectors also eked out modest gains. On the other hand, Manufacturing & Processing, Non-Life Insurance and Microfinances sub-indices fell over 1% each. Life Insurance, Hotels and Hydropower segments ended around 0.7% lower. Finance sub-index ended almost unchanged.

Shares of recently listed Nepal Infrastructure Development Bank Ltd were traded the most. Over Rs. 694 million worth of the scrip changed hands. Nabil Bank Ltd, Global IME Bank Ltd and Nepal Bank Ltd followed suit with turnovers of Rs. 411 million, Rs. 360 million and Rs. 357 million. Neco Insurance Company Ltd, Prabhu Bank Ltd, Siddhartha Bank Ltd and Kumari Bank Ltd were among other actively traded stocks.

Nepal Infrastructure Development Bank Ltd, Corporate Development Bank Ltd, Himal Urja Bikas Company Ltd and Samriddhi Finance Company Ltd were the major winners on Wednesday. Each scrip rallied to hit the upper circuit limit of positive 10%. Sunrise Bank Ltd, Laxmi Bank Ltd, Nepal Credit and Commerce Bank Ltd, Shiva Shree Hydropower Ltd and Nepal Bangladesh Bank Ltd also witnessed major advance in the session.

Sunrise First Mutual Fund, in contrast, came under pressure. The unit’s price tanked 4.53%. Infinity Laghubitta Bittiya Sanstha Ltd tumbled 3.73% and Barun Hydropower Company Ltd sank 3.53%. Kisan Laghubitta Bittiya Sanstha Ltd, Ridi Hydropower Company Ltd, Nepal Insurance Company Ltd and United Modi Hydropower Ltd were the other major laggards with declines of more than 3% each.

As per the ARKS technical analysis, the index formed a small spinning top candlestick reflecting indecision in the session. While the index has marked a fresh closing high, the momentum has slightly lost steam as multiple sectors witnessed profit booking in the recent sessions. A consolidation or correction is likely in the current juncture. However, given the index holds its footing above 2,600 mark, further upward move 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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