Daily market commentary

Nepse end Wednesday’s session in green

Published On: January 13, 2021 06:35 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Jan 13: The stock market opened Wednesday’s session on a positive note as the Nepal Stock Exchange (Nepse) index climbed more than 25 points in the morning. Following a small retracement at mid-day, stocks continued to rise in the afternoon. However, a decline in the final trading hour saw the index give up some of its earlier gains to close the day with a gain of 18.81 points. Nepse finished Wednesday’s trading at 2,286.55.

With the index stretching its gains further, the equity market is trading close to uncharted 2,300 level. Hence, investors continued to take buying position despite the index already trading at a fresh high. With interest rates dwindling further, the stock market has continued to see continuous inflow of funds from investors. Turnover remained just shy of Rs. 6 billion mark.

On the sectoral front, all traded segments ended in green. Only Banking and Hotels sub-indices witnessed marginal declines. Finance and Manufacturing & Processing sectors were the major gainers. The respective sub-indices jumped 4.75% and 4.23%. Microfinance sub-index also shot up by 2.74%. Hydropower, Development Bank, Life Insurance and Non-Life Insurance sub-indices closed over 1% higher each. All remaining segments ended marginally higher.

Shares of Nepal Telecom Ltd were traded the most. The telecom shares saw transactions of over Rs. 265 million. Nepal Reinsurance Company Ltd and Upper Tamakoshi Hydropower Ltd followed suit with turnovers of Rs. 207 million and Rs. 185 million. Shivam Cements Ltd, NIC Asia Bank Ltd and Nepal Life Insurance Company Ltd were among other active stocks of the day.

Corporate Development Bank Ltd saw the biggest percentage gain of the day. Its share price surged 10%. Aarambha Chautari Laghubitta Bittiya Sanstha Ltd, First Microfinance Development Bank Ltd, Infinity Laghubitta Bittiya Sanstha Ltd, Narayani Development Bank Ltd and Gurkhas Finance Ltd also remained locked in the upper circuit limit of positive 10%.

On the other hand, Multipurpose Finance Ltd tanked 4.71%. Mahila Sahayatra Laghubitta Bittiya Sanstha Ltd and SBI Bank Ltd also tumbled around 4% each. Civil Bank Ltd, Nepal Insurance Company Ltd and Premier Insurance Company Ltd were among other major decliners with losses of over 1% each.

On the ARKS technical front, the equity market formed a small bullish candlestick on the daily timeframe. However, with a psychological resistance of 2,300 near, some correction can also be expected in the current scenario. Nonetheless, the equity market is likely to maintain positive bias in the coming months. Support for the market lies at 2,200 mark.

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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