Daily Market Commentary

Nepse end last trading day of the week on a positive note

Published On: August 12, 2021 06:59 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, August 12: Stocks opened flat and traded mildly higher in the beginning of Thursday’s session. The benchmark climbed more than 20 points at mid-day before pulling back slightly. Nonetheless, the index continued to trade in green throughout the latter trading hours. At the close, Nepse ended up 16.32 points at 3,178.91.

The local equity market ended slightly higher after a modest movement on Wednesday. However, momentum has remained slightly subdued following a sharp rally in the past month. Market participation was upbeat with over Rs. 17 billion worth of shares being traded.

Development Bank sector rallied sharply with the index climbing 6.40%. Manufacturing & Processing, Investment and Finance sectors also rose more than 1% each. Mutual Fund, Banking and Life Insurance sectors inched higher. Trading sector, on the other hand, fell 1.51%, while Hotels and Tourism segment dipped 1.05%. Hydropower, ‘Others’ Microfinance and Non-Life Insurance ended slightly in the red.

Shares of Upper Tamakoshi Hydropower Ltd were traded the most with over Rs. 627 million worth of the energy scrip changing hands. Kamana Sewa Bikas Bank Ltd and Shine Resunga Development Bank Ltd followed suit with turnovers of around Rs. half a billion apiece. Hydroelectricity Investment & Development Company Ltd, Garima Bikas Bank Ltd, Api Power Company Ltd, Arun Valley Hydropower Development Company Ltd were among other actively traded stocks.

Mahalaxmi Bikas Bank Ltd, Kamana Sewa Bikas Bank Ltd, Shine Resunga Development Bank Ltd, Mountain Energy Nepal Ltd, Ru Ru Jalbidhyut Pariyojana Ltd and Jeevan Bikas Laghubitta Bittiya Sanstha Ltd were the major gainers with each scrip hitting the upper circuit limit of positive 10%. Union Life Insurance Company Ltd, Shree Investment & Finance Co Ltd, Rairang Hydropower Development Company Ltd and Shangrila Development Bank Ltd were the other top gainers of Thursday.

Panchthar Power Company Ltd, Oriental Hotels Ltd, Sarathi Nepal Laghubitta Bittiya Sanstha Ltd, Taragaon Regency Hotel Ltd, conversely, closed in the opposite end of the spectrum with each scrip plunging more than 3%. Upper Tamakoshi Hydropower Ltd, Rasuwagadhi Hydropower Ltd and United Modi Hydropower Ltd’s shares also suffered and dropped around 3% apiece.

As per the ARKS technical analysis, the index formed a small spinning top candlestick suggesting some indecision, although the index managed to close the day in green. Momentum indicators also indicate possibility of some consolidation. Nonetheless, a breakout above 3,200 mark with volume will likely see the index make a further move towards upside. 3,100 psychological mark can be taken as the immediate support level. 

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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