Daily Market Commentary

Nepse ends flat giving up morning gains

Published On: August 9, 2021 05:06 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU, August 9: The benchmark traded in green for most of Sunday’s trading session. Nepse reached as high as 3,120 mark at mid-session, before a steady decline pulled the market in the negative territory briefly towards the closing minutes. A late recovery pushed the index marginally in green with the benchmark ending a modest 0.66-point higher at 3,108.13.

The Nepal Stock Exchange has extended its consolidation around 3,080 to 3,100 zone suggesting lack of clarity among investors of late. While some sectors saw upbeat movement, others ended in negative territory keeping the broad based index poised. Turnover has remained upbeat with over Rs. 14 billion worth of shares being traded on the day.

Hydropower sector rose the most with the group’s sub-index rallying 3.33%. Development Banks also saw strength and the stocks rose 1.33% on average. Finance and Manufacturing & Processing sectors inched marginally lower. Non-Life Insurance and Microfinance segments tanked firmly and closed 1.38% and 1.28% lower. Hotels & Tourism sectors also dipped more than 1% each. All other sectors maintained negative bias. 

Api Power Company Ltd’s shares were traded the most. Over Rs. 819 million worth of the energy scrip changed hands. Arun Valley Hydropower Development Company Ltd, Universal Power company Ltd and Ngadi Group Power Ltd posted turnovers of Rs. 607 million, Rs. 548 million and Rs. 494 million. Butwal Power Company Ltd, Radhi Bidyut Company Ltd and Arun Kabeli Power Ltd were the other active stocks of the day.

Corporate Development Bank Ltd, Api Power Company Ltd, Universal Power Company Ltd and Jeevan Bikas Laghubitta Bittiya Sanstha Ltd were the major gainers with each scrip rallying 10% apiece. Union Life Insurance Company Ltd extended its post-listing rally rising 9.99%. Ngadi Group Power Ltd, Karnali Development Bank Ltd, Chhyangdi Hydropower Ltd also posted gains of over 9% apiece.

Gurans Laghubitta Bittiya Sanstha Ltd, on the other hand, fell sharply declining more than 4%. Janautthan Samudayic Laghubitta Bittiya Sanstha Ltd, Sabaiko Laghubitta Bittiya Sanstha Ltd and Mahila Laghubitta Bittiya Sanstha Ltd’s shares also came under pressure with losses of more than 3% apiece. Besides, mainly microfinance and insurance stocks came under pressure. 

As per the ARKS technical analysis, the index formed a small spinning top candlestick suggesting uncertain outlook for the near-term. Technical indicators also suggest a loss of momentum of late with both RSI and MACD line flattening after a rise. However, given the market maintains ground around 3,100 line, the index will likely stretch its upward move. Towards the downside, the index can find support at 3,080 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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