Weekly Market Commentary
Published On: January 14, 2022 06:56 PM NPT By: Republica | @RepublicaNepal
KATHMANDU, Jan 14: The Nepal Stock Exchange (Nepse) index saw a firmly upbeat week after the country saw a spike in new Covid cases in the past week. Stocks started week firmly in green as the benchmark rose 73.04 points on Sunday. Further gains ensued as the market rose by 19.44 points and 49.18 points on Monday and Tuesday’s trading. After a small pullback of 30.51 points on Wednesday, the market capped week with another notable gain of 54.13 points. At the close, Nepse ended at 2,857.75 points, up 165.28 points against week earlier.
The market has extended its recovery that started in mid-December pushing the index towards 2,900 mark. While banks are still facing liquidity crunch with CD ratio close to 90%, a surge in Covid cases has seen investors participate actively expecting gains seen in the previous lockdown. Volumes jumped to Rs. 35 billion compared to Rs. 21 billion in the week earlier.
Sensitive Index also climbed 4.87%. All sectors ended the week in green led by Finance segment which climbed 16.94%. Investment Index closely followed with a 14.58% rise. Hydropower, Trading and Development Bank sectors were the other major advances. Meanwhile, Heavyweight banks inched 0.61% higher.
As per the ARKS technical analysis, the index formed a strong bullish candlestick reflecting strength in the equity market. MACD line is also in the verge of a bullish crossover suggesting shift in the mid-term trend. Relative Strength Index is slightly above 50 line reflecting buyer’s control. However, a strong resistance lies at 2,850 mark, where a correction can provide opportunities to go long.
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 thispublication)
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