Daily Market Commentary

Nepse down slightly as indecision persists

Published On: November 25, 2021 07:30 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Nov 25: Stocks witnessed choppy trading in the first hour of Thursday’s session before making a small decline at mid-day. The Nepal Stock Exchange (Nepse) index fell close to 2,720 but managed to make a recovery towards the closing hours. Nonetheless, the benchmark ended session at 2,731.78 – down 3.22 points against the session earlier.

The bourse has continued to see bland sessions of late as investors have refrained from taking any major positions ahead of the monetary policy review by the central bank. With no clear direction seen in the bourse, turnover also dropped to less than Rs. 4 billion.

‘Others’, Hotels & Tourism and banking sub-indices managed to buck the trend with gains of 0.91%, 0.76% and 0.54%. On the other hand, Trading, Development Bank and Non-Life Insurance sub-indies saw dips of over 1% each. All other segments ended in negative territory.

Nepal Telecom Ltd continued to lead the list of actives with turnover of over Rs. 266 million. Mahalaxmi Bikas Bank Ltd and Civil Bank Ltd followed suit with turnovers of Rs. 162 million and Rs. 148 million. Sana Kisan Laghubitta Bittiya Sanstha Ltd saw a turnover of Rs. 100 million. The micro sector lender announced 25% stock dividend on the day. Nabil Bank Ltd, Chandragiri Hills Ltd and Jyoti Bikas Bank Ltd were among other actively traded stocks.

Samriddhi Finance Company Ltd rallied 9.27% followed by newly listed Samling Power Company Ltd which rose 8.17%. Taragaon Regency Hotels Ltd added 5.95%, while Kumari Bank Ltd and Century Commercial Bank Ltd advanced around 4% each. Joshi Hydropower Development Company Ltd, Corporate Development Bank Ltd and Oriental Hotels Ltd also saw strength.

Manushi Laghubitta Bittiya Sanstha Ltd and Sana Kisan Laghubitta Bittiya Sanstha Ltd were the major laggards with losses of 6.93% and 5.08%, respectively. Karnali Bikas Bank Ltd, Himal Dolakha Hydropower Company Ltd, Chadragiri Hills Ltd and Kalika Laghubitta Bittiya Sanstha Ltd also came under pressure with losses of over 3% apiece.

On the technical front, the index followed prior day’s doji candlestick with a spinning top candlestick, both of which primarily reflect indecision. Further, dipping volumes also confirm lack of any major momentum. Technical indicators also lack clarity. Hence, a breakout above 2,850 or below 2,680 mark with volume will be the key in determining the next possible move in 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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