Daily market commentary

Nepse ends on a positive note

Published On: January 20, 2021 07:00 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Jan 20: The Nepal Stock Exchange (Nepse) index opened in green in the morning but the index pulled back lower within first trading hour saw the index trade in the negative territory. Later on, the index managed to recover quickly and traded on the positive note in the latter hours of trading.  At the end, the equity market closed at 2,342.77 points with a gain of 15.87 points.

With the day’s gain, the stock market closed in the positive territory by erasing preceding day’s losses.The market participation also remained upbeat with over Rs. 6.210 billion worth of shares being traded on the day.

Sub-indices closed the day on a mixed note. Life Insurance, Finance, Hydropower and Non-Life Insurance sub-index advanced 4.67%, 4.26%, 3.05% and 1.73% respectively. Similarly, Development Bank, Microfinance and Mutual Fund ended on a meager increment.

On the other hand, Hotels and Manufacturing & Processing sub-indices fell 1.12% and 1.05% correspondingly. Likewise, Other, Trading and Banking sub-index closed on a lower note.

Nepal Life Insurance Company Ltd was the mostheavily traded stock on Wednesday with over Rs. 614 million shares traded. Likewise, Prabhu Bank Ltd, Nepal Reinsurance Company Ltd and Shikhar Insurance Company Ltd recorded turnovers of Rs. 295 million, 273 million and Rs. 251 million correspondingly. Stocks of NIC Asia Bank Ltd, Nepal Doorsanschar Company Ltd, United Insurance Co (Nepal) Ltd and Upper Tamakoshi Hydropower Company Ltd were the other actively traded shares.

Among gainers, 15 companies managed to closed above 9% on Wednesday which includes shares of Best Finance Company Ltd, Corporate Development Bank Ltd, Green development Bank Ltd, Saptakoshi Development Bank Ltd, Narayani Development Bank Ltd, Nepal Finance Ltd, Prabhu Life Insurance Company Ltd, Nepal Hydro developer Ltd, Karnali development Bank Ltd, Shree Investment Finance Co Ltd, Reliance Finance Ltd, Central Finance Co. Ltd, Sindhu Bikas Bank Ltd, Progressive Finance Ltd and Mahila Sahayatra Microfinance Bittiya Sanstha Ltd.

On the other hand, Bishal Bazar Company Ltd, Kamana Sewa Bikas Bank Ltd, Civil Laghubitta Bittiya Sanstha Ltd, Sanima Bank Ltd Debenture and Barun Hydropower Co. Ltd closed 3% each lower. Summit Laghubitta Bittiya Sanstha Ltd, Gurans Laghubitta Bittiya Sanstha Ltd, Taragaon Regency Hotel Ltd, Manjushree Finance Ltd and NLG Insurance Company Ltd dropped 2% 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 indicating that bulls still have more legs for upside movement. Technical indicators also reflect strength in the recent trading sessions. Meanwhile, the psychological 2,300 mark has acted as a support. While some correction can be expected, the general uptrend remains 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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