Weekly Market Commentary

Nepse ends week higher as majority of indices see gains

Published On: July 30, 2021 06:53 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, July 30: The Nepal Stock Exchange opened the week on a strong note as the index saw a gain of more than 54 points on Sunday. After a modest correction of 8 points on Monday, stocks stretched its gaining momentum. On Tuesday, Nepse added 29 points followed by a gain of 15 points on Wednesday. The last trading day of the week saw minor selling pressure with the index ending around 15 points lower. Subsequently, Nepse ended the week 2.51% or 75.49 points higher at 3,004.33.

The review period’s advance saw the Nepalese equity market extend its gaining run for a third straight week. With sectors leading the charge sequentially, the index has continued to hold ground with intermittent correction of a few weeks. Turnover also improved as banking average made a fresh record. Over Rs. 67 billion worth of equities were traded.

The Sensitive Index also climbed 1.54%. In terms of sectoral performance, most ended the week in green. Hotels & Tourism and Hydropower segments led the market with both sectors closing more than 7% higher. Finance sub-index also rallied 6.49% followed by the Manufacturing & Processing sector, which rose 5.88%. The Investment Index climbed 4.43%. All other sectors saw strength, barring Mutual Fund and Banking sectors, which saw modest weekly losses.

Shares of United Modi Hydropower Ltd were traded the most followed by National Hydropower Company Ltd. Both scrips witnessed turnovers of almost Rs. 1.5 billion. NIC Asia Bank Ltd, Nepal Bank Ltd, Api Power Company Ltd and Arun Valley Hydropower Company Ltd saw transactions of over Rs. 1.3 billion each. Himalayan Distillery Ltd, Sanima Mai Hydropower Ltd and Global IME Bank Ltd were among other heavily traded stocks.

As per the ARKS weekly technical analysis, the index formed a bullish green candlestick, suggesting buyers in control. With the index making a fresh closing high this week, some correction is also on the cards reflected by overbought reading in Relative Strength Index (RSI) chart. However, any sign of loss of momentum is yet to be observed. Hence, given the market stays afloat above 3,000 mark, the market will likely stretch its upward move. Conversely, a breach of 3,000 mark to the downside might see the index falter further.

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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