Daily market commentary

Nepse ends in red for second consecutive day

Published On: March 9, 2021 08:52 PM NPT

KATHMANDU, March 9: The equity market began the trading day on the upper side of the spectrum, but quickly dragged to trade in the lower note. Likewise, the index continued to trade in the red note in the latter trading session. At the close, the benchmark Nepal stock Exchange (Nepse) index ended the Tuesday’s trading session 23.22 points at 2461.88.

With the pullback seen in the bourse for the second consecutive trading day, the total turnover also saw a decrease. Only Rs. 4.752 million worth of shares were traded in the day.

Majority of the sectors ended in the red note except Hotels and Tourism, Hydropower and Mutual Fund sectors which rose 2.98%, 1.8% and 0.07% respectively. Manufacturing & Processing, Investment, Banking, Trading, Others, Microfinance and Life Insurance sub-indices saw weakness and dropped above 1% each. Similarly, Development Bank, Finance and Non-Life Insurance sub-index inched marginally lower.

Shikhar Insurance Company Ltd posted the highest turnover of Rs. 653 million. Hydropower stocks which includes Upper Tamakoshi Hydropower Ltd and Arun Valley Hydropower Development Co. Ltd also saw heavy transactions as over Rs. 293 million each worth of its shares changed hands. Nepal Infrastructure Bank Ltd, Nepal Doorsanchar Company Ltd, Nepal Insurance Co. Ltd registered turnovers of Rs. 254 million, Rs. 176 million and Rs. 124 million respectively. Global IME Bank Ltd, Nabil Bank Ltd and Nepal Life Insurance Company Ltd were among other active stocks.

Among advances, Himalaya Urja Bikas Company Ltd, Chandragiri Hills Ltd, Nepal Hydro Developers Ltd, Rairang Hydropower Development Company Ltd and United Finance Ltd shot up above 9% to remain in the upper circuit limit. Panchakanya Mai Hydropower Ltd, Arun Valley Hydropower Development Co. Ltd and Kalika Power Company Ltd followed suit with gains of 7.69%, 7.25% and 6.40% respectively. Likewise, Ghalemdi Hydropower Ltd, Ridi Hydropower Development Ltd and Panchthar Power Company Ltd were the other major gaining scripts with an advance of 4% each.

In contrast, Support Microfinance Bittiya Sanstha Ltd and Mithila Laghubitta Bittiya Sanstha Ltdsuffered the most and closed 5.18% and 4.62% lower. Pokhara Finance Ltd, Narayani Development Bank Ltd, Global IME Bank Ltd, Sadhana Laghubitta Bittiya Sanstha Ltd and Mero Microfinance Bittiya Sanstha LtdLtd’s shares also struggled giving up more than 3% each. United IDI Mardi RB Hydropower Ltd, Reliance Finance ltd and National Life Insurance Company Ltd were the other major decliners on the day.

As per the ARKS technical analysis, the market formed a bearish candlestick for the second consecutive day. Hence, further correction in the week is likely. However, the immediate support lies at 2360 points at the current juncture while immediate resistance lies at 2,600 psychological mark.

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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