Daily market commentary

Nepse ends in green for a fifth straight day

Published On: January 12, 2021 06:21 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Jan 12: The equity market opened the day slightly in green and witnessed minor correction in the morning. The stock market saw considerable strength thereafter, and saw a steady advance till the end of the trading day. At the close, the Nepal Stock Exchange (Nepse) finished at 2,267.96 – up 28.53 points against the session earlier.

The benchmark marked a fresh high on Tuesday stretching its gaining streak for the fifth straight day. Nonetheless, market participation fell slightly as a majority of sectors witnessed consolidation. The turnover stood at 4.98 billion.

Barring the Trading sector, all other segments ended in positive territory. Hydropower stocks led the gains with the group’s index rising 3.6 percent. Life Insurance, Non-Life Insurance and Finance shares also saw considerable buying pressure with all sub-indices ending 2 percent higher. Besides, all other composite indices closed with decent gains.

Premier Insurance Company Ltd was the most actively traded stock of the day. The non-life insurer declared an 11.05 percent cash dividend for the year 19/20. Prabhu Bank Ltd and Upper Tamakoshi Hydropower Ltd, subsequently, posted turnovers of Rs 161 million and Rs 157 million. Nepal Life Insurance Company Ltd, National Life Insurance Company Ltd and Civil Bank Ltd were among other top turnover stocks. Civil Bank Ltd announced an eight percent stock dividend for fiscal year 19/20 on Monday evening.

IME General Insurance Ltd was the biggest percentage gainer of the day. Its stock price rose 10 percent. Aarambha Chautari Laghubitta Bittiya Sanstha Ltd, Corporate Development Bank Ltd, United Finance Ltd, Upper Tamakoshi Hydropower Ltd, Prabhu Life Insurance, Samriddhi Finance Company Ltd and Gurkhas Finance Ltd also rose more than nine percent.

Conversely, Nepal Hydro Developers Ltd suffered the most with its share price tanking 3.78 percent. Premier Insurance Company Ltd and Civil Laghubitta Bittiya Sanstha Ltd suffered losses of more than two percent each. NMB50 mutual fund units, Taragaon Hotels Ltd and Unilever Nepal Ltd suffered losses of over one percent each.

In terms of ARKS technical analysis, the market formed a bullish candlestick on the daily timeframe. Hence, the equity market is yet to show signs of losing steam. However, with the turnover dropping slightly, some correction can also be expected. Momentum indicators also suggest that buyers are firmly in control in the present context. Immediate support for the market can be taken at 2,200 levels.

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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