Daily Market Commentary

Nepse ends in red for second consecutive day

Published On: April 26, 2021 08:15 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, April 26: Stocks came under pressure since the beginning of Monday’s trading session. The Nepal Stock Exchange (Nepse) index fell around 56 points in the morning before recovering slightly. However, equities continued to falter further in the latter trading hours. At the close, Nepse finished 65.58 points lower at 2,506.62.

The market continued to fell for the second straight day, igniting fears of likely strict lockdown. Likewise, the investors are still refraining from taking any major buying positions in the current juncture. However, the total turnover stood over Rs. 6.59 billion on the day.

All the sectors ended the day in the negative side of spectrum. Hydropower, Trading, Development Bank and Non-Life Insurance segments fell 4.04%, 3.58%, 3.13% and 3.02% correspondingly. Banking, Hotels and Tourism, Finance, Others, Microfinance, Life Insurance and Investment stocks also came under pressure as the respective sub-indies fell over 2% each.And all other sectors ended in a lower note.

Upper Tamakoshi Hydropower Company Ltd, Nepal Infrastructure Bank Ltd and Nepal Reinsurance Company Ltd were traded the most and recorded the turnovers over Rs.317 million, Rs.252 million and Rs.202 million respectively. Likewise, shares of Nabil Bank Ltd, Nepal Life Insurance Company Ltd and Citizen Investment Trust followed suit with a turnover of Rs. 195 million, Rs.177 million and Rs.169 million correspondingly. NIC Asia Bank Ltd, Prabhu Bank Ltd, Hydroelectricity Investment and Development Company Ltd and Nepal Credit and Commercial Bank Ltd were the other active stocks for the day.

Bishal Bazar Company Ltdand Mahila Laghubitta Bittiya Sanstha Ltd stretched their surge with another almost 10% gain each. 10.25% Machhapuchhre Bank Ltd, Goodwill Finance Ltd and 10.25% SBL Debenture 2083 shot by 5%, 3.79% and 3% respectively. 10.25% SBL Debenture 2082, Sanima Bank Ltd Debenture, Laxmi Equity Fund, NIC Asia Balance Fund and Global IME Laghubitta Bittiya Sanstha Ltd were other gainers with advance above 1% apiece.

Reliance Finance Ltd, Chhyangdi Hydropower Ltd and Sindhu Bikas Bank Ltd, on the other hand, suffered the most as its stock price fell 8.06%,7.56% and 7.27% respectively. United IDI Mardi RB Hydropower Ltd, National Hydro Power Company Ltd, Shree Investment Finance Co. Ltd, Nepal Hydro Developers Ltd and Multipurpose Finance Company Ltd’s shares also struggled with 6% declines each.

As per the ARKS technical analysis, the market formed a strong bearish candlestick on the day. Technical indicators also suggest that selling pressure is prevailing in the current market. However, the market has managed to close slightly above the 2500 psychological level. A breach below 2500 mark can see some corrective move towards the downside to testing the minor support level at 2460.

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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