Weekly Market Commentary

Nepse closes week on positive note

Published On: April 30, 2021 06:02 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU, April 30: The equity market opened in green in the morning but a sharp fall in the beginning hour saw the Nepal Stock Exchange (Nepse) index trade in the negative territory. However, the index managed to hold on to earlier gains finishing at 2,611.11 – up 25.83 points against Wednesday’s close. However, the bourse witnessed a sub-par turnover of Rs. 4.357 billion.

Majority of the sectors closed in the upper note except Hotels and Tourism and Investment sectors which ended in meager decrement. Trading index shot up by 3.48% backed by Bishal Bazar Company Ltd’s rally. Hydropower, Others and Manufacturing & Processing sectors also saw considerable strength and rallied by 3.21%, 2.54% and 1.84% respectively. All other sectors closed in a positive note with slight increment.

Shares of Nepal Credit and Commercial Bank Ltd were traded the most with a turnover of over Rs. 309 million. Shivam Cement Ltd, Himalayan Power Partner Ltd and Upper Tamakoshi Hydropower Company Ltd followed suit with turnovers of Rs. 187 million, Rs. 167 million and Rs. 166 million respectively. Nepal Reinsurance Company Ltd, Arun valley Hydropower Company Ltd, Nepal Infrastructure Bank Ltd and Sanima Bank Ltd were among other active stocks of the day.

Shares of Mahila Laghubitta Bittiya Sanstha Ltd, Singati Hydro Energy Ltd and Bishal Bazar Company Ltdremained locked in the upper circuit of positive 10% each. Sanjen Jalabidhyut Company Ltd, NRN Infrastructure Bank Ltd and Himalayan Power Partner Ltd witnessed the strength and rose by 8.56%, 7.3% and 7.29% respectively. Himal Dolakha Hydropower Company Ltd, Arun Valley Hydropower Company Ltd, Dibyashwori Hydropower Ltd, Rasuwagadhi Hydropower Company Ltd were among other top gaining stocks which advance above 5% apiece.

Meanwhile, Shree Investment Finance Co. Ltd and Hydro Power Developers Ltd suffered the most and declined 2.82% and 2.30%. Unilever Nepal Ltd, 10% Himalayan Bank Debenture 2083, Samriddhi Finance Company Ltd, Narayani Development Bank Ltd also ended more than 1% lower. 

As per the ARKS technical analysis, the market formed a small bullish candlestick on the dayas Nepse extended its recovery. Besides, a rebound from 2600 support mark reflects buyers gaining control and the market also managed to close above the 5 days Moving Average line. The key support level of 2600 mark is crucial at the present context. Similarly, a significant rebound complemented by improved turnover in the upcoming sessions will validate the reversal further.

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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