Daily Market Commentary

Nepse ends in green for second consecutive day

Published On: February 16, 2021 08:00 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Feb 16: The Nepal Stock Exchange (Nepse) index opened in green and traded over 29 points higher in morning and continued to maintain in the positive territory for most of the trading session. However, the index pulled back in negative side with a meager decrement towards the last trading hour. Nonetheless, the benchmark index quickly recovered and ended the day 15.50 points higher at 2601.51 points.

The equity market saw a slight correction with the profit booking seen on microfinance, hydropower, trading and manufacturing & processing segments. However, the investors continued to show notable buying enthusiasm in the market. On Tuesday trading, Banking helped the index hold ground despite meager losses seen in other sectors.  Likewise, the total turnover also crossed Rs. 10 billion mark.

Only few sectors finished in green. Gains came from, banking groups, which ended 2.08% higher. Similarly, Mutual Fund, Others and Development Bank also closed in a green note with a meager increment. In contrast, Manufacturing & Processing, Hydropower and Trading stocks came under pressure. The group’s sub-index fell above 1% each. Hotels, Finance, Non-life Insurance, Microfinance and life Insurance segments saw minor losses.

Shares of Nabil Bank Ltd and Global IME Bank Ltd were traded the most. Over Rs. 544 million and 425 million worth of the bank’s shares changed hands. Nepal Bank Ltd, Neco Insurance Co. Ltd, NIC Asia Bank Ltd and Shikhar Insurance Company Ltd were the other active stocks with turnovers of Rs. 391 million, Rs.373 million, Rs.336 million and RS. 305 million respectively. Himalayan Distillery Ltd, Siddhartha Bank Ltd, NMB Bank Ltd and Kumari Bank Ltd were the other heavily traded scrips.

Chandragiri Hills Ltd, Nepal Infrastructure Bank Ltd, Mirmire Microfinance Development bank Ltd, Corporate Development bank Ltd, Sunrise First Mutual Fund and Himalaya Urja Bikas Company Ltd locked in the upper circuit limit above 9.5% each. Siddhartha Bank Ltd, Nepal Bank Ltd, Global IME Bank Ltd and NMB Bank Ltd were among the major gainers for the day.

On the other hand, shares of Sadhana Laghubitta Bittiya Sanstha Ltd came under pressure and dropped 6.15%. Panchthar Power Company Ltd, Barun Hydropower Company Ltd, Swabhimaan Laghubitta Bittiya Sanstha Ltd also traded 5% lower apiece. Mahuli Samudayik Laghubitta Bittiya Sanstha Ltd, Mountain Hydro Nepal Ltd, Gurkhas Finance Ltd, Hydroelectricity Investment and Development Bank Ltd and Ngadi Group Power Ltd fell 4% each.

As per the ARKS technical analysis, the index formed a small bearish candlestick after closing lower than the opening mark. Nonetheless, the equity market marked a fresh closing high above the psychological 2,600 mark indicating that bulls still have more legs for upside movement. Technical indicators also reflect strength in the recent trading sessions. . A failure to breach the aforementioned mark can point towards possibility of some consolidation. Nonetheless, the overall uptrend in the secondary market has still remained intact.  

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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