Daily Market Commentary

Nepse end slightly higher, volumes make another record

Published On: May 31, 2021 05:13 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU, May 30: Following modest corrections in the latter half of the prior week, stocks saw massive gains in Sunday morning. The Nepal Stock Exchange (Nepse) index rallied more than 35 points in the first trading hour before pulling back towards opening level. Nonetheless, the benchmark maintained positive bias throughout the afternoon. Following some correction in the final hour, Nepse ended the day 12.54 points higher at 2,827.93.

Opening the week with a record turnover of over Rs. 17 billion, the equity market is reflecting continuation of buying enthusiasm in equity market. The influx of investments in the market has continued to keep the market afloat at higher levels, despite profit taking witnessed in some sectors. 

Development Bank and Finance stocks were the major winners of the day. The respective sub-indices shot up by 7.39% and 5.08%. Following closely, Hotels & Tourism and Mutual Fund segments ended 4.05% and 3.87% higher. Banking sector rose 1.07%. Life Insurance and Non-Life Insurance segments also inched higher. On the other hand. ‘Others’ segment continued its fall dropping more than 2.49% on Sunday. Microfinance sub-index lost 1.37% Trading, Investment, Manufacturing & Processing and Hydropower segments ended slightly in the negative territory. 

Shares of National Hydropower Company Ltd were traded the most as the scrip registered a turnover of over Rs. 474 million. Arun Kabeli Power Ltd, United Modi Hydropower Ltd and Butwal Power Company Ltd followed suit with turnovers of Rs. 469 million, Rs. 413 million and Rs. 412 million. Api Power Company Ltd, Chilime Hydropower Company Ltd and Sanima Mai Hydropower Ltd were among other active stocks of the day. 

15 companies remained locked in the upper circuit limit. Jyoti Bikas Bank Ltd, Ankhu Khola Jalvidhyut Company Ltd, Ghalemdi Hydro Ltd, Goodwill Finance Co. Ltd, Lumbini Bikas Bank Ltd and Shine Resunga Development Bank Ltd rallied almost 10%. Soaltee Hotel Ltd, Oreintal Hotels Ltd, Khani Khola Hydropower Co. Ltd and Joshi Hydropower Company Ltd were the other top gainers of the day. 

Conversely, Barun Hydropower Co. Ltd and Himalaya Urja Bikas Company Ltd came under notable pressure with both scrips plunging more than 6%. Mithila Laghubitta Bittiya Sanstha Ltd and Mountain Hydro Nepal Ltd, subsequently, fell 5.49% and 5.31%. Further, Rairang Hydropower Development Company Ltd, Civil Laghubitta Bittiya Sanstha Ltd, Greenlife Hydropower Ltd and Synergy Power Development Ltd fell more than 4% apiece. 

The benchmark index, as per the ARKS technical analysis, formed a small spinning top candlestick suggesting indecision in the current juncture. Though the index has managed to hold ground firmly over 2,800 mark, corrections seen in some sectors are pointing towards a possibility of some consolidation. A series of high volumes sessions, meanwhile, indicate the momentum yet to ease off keeping major corrections on check. Momentum indicators also indicate some more space for upward movement. 

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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