Daily Market Commentary

Nepse ends lower amidst subdued market activity

Published On: March 30, 2021 07:44 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, March 30: The equity market opened in green and hovered around 2,560 mark for most of the beginning trading hours. The index saw further strength in the second half of the trading session with another upbeat advance. At the close, Nepse registered a gain of 32.15 points to settle at 2,5775.67.

After two days of small retracements, investors remained enthused to take buying positions on Tuesday. Volumes also improved on the day with a turnover of over Rs. 6 billion.

Majority of the sectors ended on the positive side of spectrum on Tuesday’s trading session except Trading and Manufacturing & Processing segments. The group’s indices closed in red with slight decrements. Hydropower, Hotels and Tourism, Microfinance and Non-life insurance sub-indices jumped 4.14%, 3.25%, 3.2% and 3.08%, respectively. Likewise, Life Insurance and Mutual Fund sectors rallied above 1% each. Banking, Development Bank, Finance and Investment stocks also ended on a positive note.

Among actives, Nepal Infrastructure Bank Ltd and Nirdhan Utthan Laghubitta Bittiya Sanstha Ltd’s shares were heavily traded with turnovers of Rs.480 million and Rs. 436 million, respectively. NLG Insurance Company Ltd, Upper Tamakoshi Hydropower Ltd and Hydroelectricity Investment and Development Company Ltd followed suit with transactions of Rs. 331 million, Rs.289 million and Rs.281 million, correspondingly. Chandragiri Hills Ltd, Chhimek Laghubitta Bittiya Sanstha Ltd, Nabil Bank Ltd and Lumbini General Insurance Co. Ltd were among other actively traded shares.

Womi Microfinance Bittiya Sanstha Ltd and Sanima General Insurance Ltd were the major winners with advances of almost 10% each. General Insurance Company Ltd, Ajod Insurance Ltd, Summit Laghubitta Bittiya Sanstha Ltd and Swabhimaan Laghubitta Bittiya Sanstha Ltd also remained in the upper circuit limit with a gain above 9% each. Similarly, Prabhu Life Insurance Company Ltd, Upper Tamakoshi Hydropower Company Ltd and Hydroelectricity Investment and Development Company Ltd were the other gaining scrips for the day with advance ofover 8% apiece.

On the other hand, United IDI Mardi RB Hydropower Ltd’s price suffered the most and declined more than 5%. It was followed by shares of Nepal Infrastructure Bank Ltd which lost 2.31%. Likewise, NIC Asia Debenture 2081/82, Ridi Hydropower Development Company Ltd, Panchthar Power Company Ltd, Goodwill Finance ltd, Progressive Finance Ltd and Taragaon Regency Ltd closed in red.

As per the ARKS technical analysis, the market formed a bullish candlestick reflecting positive bias in the day. With the index advancing throughout the session, sentiment continued to remain bullish. 2,600 level will be the key resistance level to be watched, as the breach from the psychological level can see the index test its all-time high at around 2,670 mark. On the other hand, a minor support for the market lies at 2,240.

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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