Daily Market Commentary

Nepse closes almost flat after recouping intraday loss

Published On: November 30, 2021 07:00 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Nov 30: Stocks opened in green and traded slightly higher in the morning. However, the market witnessed a sharp decline thereafter before a small recovery at mid-day. The benchmark continued to trade in red for most of the session. A last hour rebound pushed the index towards the opening level. At Tuesday’s close, Nepse stood at 2,628.37 – down 1.64 points against the day earlier.

The day’s dip marks fourth straight day of loss amidst lack of any upbeat news on the financial front. Turnover remained on the lower end of the spectrum as only Rs. 3 billion worth of equities changed hands.

Sectors ended mixed as lack of clarity still persists in the equity market. Development Bank and Non-Life Insurance sub-indices saw some strength and rose 0.83% each. ‘Others’, Hydropower, Finance and Mutual Fund sectors also ended in green. On the other hand, Manufacturing & Processing and Trading sub-groups fell around 0.8% each. All other sectors saw modest declines.

ICFC Finance Ltd and Mahalaxmi Bikas Bank Ltd were the top turnover stocks of the day with turnovers of Rs. 160 million and Rs. 140 million. Himalayan Distillery Ltd, Nabil Bank Ltd and National Hydropower Company Ltd followed suit.

Samling Power Company Ltd and Nyadi Hydropower Ltd rallied by around 10% each. Terathum power Company Ltd and United Idi Mardi RB Hydropower Ltd also rose by around 7% each. ICFC Finance Ltd, Himal Dolakha Hydropower Development Company Ltd and Summit Laghubitta Bittiya Sanstha Ltd also saw strength.

On the other hand, Infinity Laghubitta Bittiya Sanstha Ltd suffered a loss of 4.77%. Life Insurance Corporation Nepal Ltd, Miteri Development Bank Ltd and Bank of Kathmandu Ltd lost 2.86%, 2.78% and 2.76%, respectively. IME General insurance Company Ltd, Mega Bank Ltd and Gurans Life Insurance Company Ltd were the other major decliners.

As per the ARKS technical analysis, the index formed a small spinning top candlestick reflecting uncertainty. Dipping volumes also suggest lack of conviction in the market. Both RSI and MACD indicators point towards possible correction. Nonetheless, with 2,600 support near, the action of the market around the aforementioned level, will help gauge further direction of 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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