Daily market Commentary

Nepse closes week on positive note

Published On: October 29, 2021 08:44 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Oct 29: The equity index fell more than 21 points within the first few minutes of trading then immediately recoup its earlier losses. However, the market witnessed choppy trading in most of the session. Towards the end market gained 13.04 points to close the index at 2782.16.

Volumes managed to remain above average in Thursday trading session. Over Rs. 5.395 billion worth of equities changed hands. 

Hydropower, Others and Microfinance stocks were the major winners rising more than 2%. Sub-indices of Development Bank, Finance, Non-life Insurance and Investment ended in positive territory with a meager increment. On the other hand, the Hotels and Tourism sectors fell by 1.15%. All other sectors closed on a negative note.

National Hydro Power Company Ltd and Nabil Bank Ltd were the most actively traded stocks of the day. Over Rs. 291 million and 227 million worth of the shares changed hands. Jeevan Bikas Laghubitta Bittiya Sanstha Ltd, NIC Asia Bank Ltd, United Modi Hydropower Company Ltd, Swarojgar Laghubitta Bittiya Sanstha Ltd followed suit with turnovers of Rs. 184 million, Rs. 172 million, Rs. 169 million and Rs. 152 million correspondingly.

Ridi Hydropower Development Company Ltd hit the upper circuit limit of 10% on Thursday. Manakamana smart Laghubitta Bittiya Sanstha Ltd and Himalayan Power Partner Ltd advance above 9% each. Shares of Jeevan Bikas Laghubitta Bittiya Sanstha Ltd, Grameen Bikas Laghubitta Bittiya Sanstha Ltd, Saptakoshi Development Bank Ltd and National Hydro Developers Ltd surge by 8.57%, 8.25%, 8.16%, 8.11% and 7.69% correspondingly.

In contrast, NMS hybrid Fund L-1 unit price fell by 3.18%. Gurans Life Insurance Company Ltd, Citizens Mutual Fund-2, Ajod Insurance Company Ltd Agriculture Development Bank Ltd, and Unilever Nepal Ltd registered losses above 2% apiece. 

Among announcements, NADEP Laghubitta Bittiya Sanstha Ltd announced its dividend for its last fiscal year. As per its notice to Nepse, the microfinance will be distributing a 20% bonus However, the dividend is subject to approval from Nepal Rastra Bank and the upcoming AGM of the company.

As per the ARKS technical analysis, the index formed a small bullish candlestick on the daily timeframe by closing near the intraday day point. The equity market is still lower than the key level of 2800 mark. However, the market sustained the immediate support of 2750 points on the last day of trading week. Whereas the key 2,800 mark must be watched before taking any significant position on the buying side. 

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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