#Daily market commentary

Nepse closes week on a positive note

Published On: February 18, 2021 07:30 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Feb 18: The benchmark index opened Thursday’s session higher in the pre-opening session, but the index gave up most of its earlier gains within first trading hours. Nonetheless, the equity market maintained its footing in green throughout the latter trading hours. At the close, Nepse settled at 2,636.68 – up 25.83 points against the session earlier.

The local bourse marked its fresh high on Thursday with the index managed to close above 2,600 mark for second straight day. Similarly, the total turnover stood at Rs. 8.76 billion on day.

Most of the sectors ended the day in a positive note expect Life Insurance, Non-life insurance and Microfinance sectors. These group’s ended in lower side with a slight decrement. Others, Trading, Development bank and Banking sub-indices rallied 2.6%, 2.45%, 2.33% and 1.22% respectively.  Likewise, Hotels, Hydropower, Finance and Manufacturing & Processing segments ended the trading day in green.

Shares of NIC Asia Bank Ltd and Nepal Infrastructure Bank Ltd were traded the most. Over Rs. 560 million and Rs. 508 million worth of the shares changed hands. Subsequently, Civil Bank Ltd, Global IME Bank Ltd, Nabil Bank Ltd and Nepal Doorsanschar Company Ltd posted turnovers of Rs. 283 million, Rs. 269 million, Rs. 260 million and Rs. 254 million correspondingly. Everest Bank Ltd, Nepal Bank Ltd, Nepal Life Insurance Co. Ltd and Mega Bank Ltd were among other heavily traded scrips of the day.

Among gainers, shares of Nepal Hydro Developers Ltd locked in the upper circuit limit of 10% on Thursday. Likewise, Karnali Development Bank Ltd, Everest Bank Ltd Convertible Shares, Best Finance Company Ltd, Civil Bank Ltd, Nepal Infrastructure Bank Ltd, Samriddhi Finance Company Ltd and Green Development Bank Ltd rallied above 9% each.  Chandragiri Hills Ltd and Himalayan Power Partner Ltd also shot above 8% apiece.

Among losers, stocks of Mirmire Microfinance Development Bank Ltd came under pressure and decline by 4.91%. Similarly, Himalaya Urja Bikas Company Ltd and Support Microfinance Bittiya Sanstha Ltd also suffered declines of 3.70% and 3.67% respectively. Samudayik Laghubitta Bittiya Sanstha Ltd, Ajod Insurance Ltd, Global IME Bank Ltd, IME General Insurance Company Ltd, Forward Community Laghubitta Bittiya Sanstha Ltd, Chhyangdi Hydropower Ltd, Ghalemdi Hydro Ltd and Mahuli Samudayik Laghubitta Bittiya Sanstha Ltd were among other losers with declines of around 2% apiece.

On the ARKS technical front, the equity market formed a small green candlestick indicating further strength. While the index has marked a fresh closing high maintaining above 2600 psychological level for second straight day which indicates the buying momentum is still prevailing in the market. Technical indicators also reflect strength in the recent trading sessions. A failure to breach the aforementioned mark can point towards possibility of some consolidation. Nonetheless, overall uptrend in the secondary market has still remained intact.

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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