Daily Market Commentary

Nepse ends the week on lower note

Published On: December 2, 2021 07:45 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Dec 2: The local bourse started on a positive note but failed to sustain in the positive territory and within a few minutes the trading market pulled back to trade in red. The benchmark dropped over 20 points till mid-day.  Later on, the index continued to falter throughout the afternoon. At the close, Nepse was down 49.04 points against the session earlier at 2584.61

Likewise, daily turnover also registered in the lower side of the spectrum suggesting lack of major momentum. Market participation remained at Rs. 3.41 billion.

All sectors fell sharply, with major losses coming from Development Bank, Finance and Other sectors. The respective sub-indices tanked 3.82%, 3.76% and 3.64% respectively. Likewise, the sub-index of Hydropower, Non-Life Insurance and Manufacturing & Processing shed above 2% each. All other sectors ended firmly lower.

Mahalaxmi Bikas Bank Ltd, Himalayan Distillery Ltd and National Hydro Power Company Ltd were the most actively traded stocks with turnovers of over Rs. 124 million, Rs.117 million and Rs. 109 million respectively. Nepal Doorsanchar Company Ltd, Nabil Bank Ltd and NIC Asia Bank Ltd recorded the volume above Rs. 90 million each. API Power Company Ltd, Nepal Reinsurance Company Ltd and Mahila Laghubitta Bittiya Sanstha Ltd were among other active stocks.

Among gainers, Samling Power Company Ltd and Nyadi Hydropower Ltd saw strength. Both stocks were up by over 9.98% at close. It was followed by Mahila Laghubitta Bittiya Sanstha Ltd rose 8.5%. Nepal SBI Bank Ltd and Sabaiko Laghubitta Bittiya Sanstha Ltd were the other gaining scripts for the day with an increment above 1% apiece.

Corporate Development Bank Ltd and Mailung Khola Jalbidhyut Company Ltd’s shares suffered with dips of over 6% apiece. Shares of Shree Investment Company Ltd, United IDI Mardi RB Hydropower Company Ltd, Goodwill Finance Company Ltd, Reliance Finance Ltd, Manakamana Smart Laghubitta Bittiya Sanstha Ltd and Samriddhi Finance Company Ltd closely followed, ending over 5% lower.

 On the technical front, the index formed a bearish candlestick on the day. Similarly, Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) reflect selling pressure at the present context. A shift in indicator direction can also help gauge the possibility of Nepse’s rebound. 2,560 mark will be the key support zone, a recovery from which will suggest the end of correction. A breach towards the downside, meanwhile, suggests possibility of further retracement towards 2,480 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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