Daily Market Commentary

Nepse ends in red for second consecutive day

Published On: April 19, 2021 07:44 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, April 19: The Nepalese equity market opened Monday’s session in red and gave up almost 27 points in half of the trading session. Nonetheless, the market immediately recover its earlier losses and traded on a positive note within the first trading hour. However, the market continued to lose its momentum and traded on a negative note in the remaining session. In the end, the benchmark index close with a loss of 37.58 points at 2661.94.

Significant selling pressure on most of the sectors pulled the broader index lower. And the total turnover stood at only Rs. 6.76 billion.

Hotel and Tourism sector was the day’s major loser. The group’s sub-index tumbled 6.17%. Trading, Development Bank, Banking, Non-Life Insurance, Others, and Microfinance stocks fell 2.9%, 1.94%, 1.86%, 1.77%, 1.32% and 1.18% respectively. All other sectors closed in red, barring Finance and Hydropower groups which close in slight increment.  

Shares of Citizen Investment Trust were traded the most with a turnover of Rs. 283 million. Hydroelectricity Investment and Development Bank Ltd, Nepal Infrastructure Development Bank Ltd and NIC Asia Laghubitta Bittiya Sanstha Ltd, Upper Tamakoshi Hydropower Company Ltd, and Chandragiri Hills Ltd posted turnovers of Rs. 246 million, Rs. 239 million, Rs. 231 million, Rs. 225 million, and Rs. 218 million correspondingly. NIC Asia Bank Ltd, Nabil Bank Ltd, Kumari Bank Ltd and Manjushree Finance Ltd were among other heavily traded stocks.

Jyoti Life Insurance Company Ltd and Mahila Laghubitta Bittiya Sanstha Ltd were the gaining stocks for the day and their share price surged by 9.98% and 9.94% respectively. It was followed by NRN Infrastructure and Development Bank Ltd and Hydroelectricity Investment and Development Bank Ltd rose by 5% and 4.81% respectively. Liberty Energy Company ltd, Gurkhas Finance Ltd, Manjushree Finance Ltd and Kalika Microcredit Development Bank Ltd also registered gains of over 3% each.

On the other hand, Chandragiri Hills Ltd suffered the most as the stocks dropped 9.8%.  Likewise, shares of Saptakoshi Development Bank Ltd also dropped by 5.5% on the day. IME General Insurance ltd, Ridi Hydropower Development Company Ltd, Siddhartha Bank Ltd, Best Finance Ltd, and Kamana Sewa Bikas Bank Ltd were the other major laggards with declines of over 3% each.

In terms of ARKS technical analysis, the market formed a bearish candlestick on the daily timeframe for the second straight day as the index failed to stretch the uptrend further. Hence, some correction or consolidation can be expected in the coming sessions.  On Monday’s trading session, the market managed to close above the immediate support level of 2,650. A break below the aforementioned line can signal a possibility of deeper retracement and test the psychological support level at 2600.  

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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