Daily Market Commentary

Nepse extends losses as all sectors tank

Published On: November 9, 2021 06:23 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Nov 9: The equity market opened Tuesday on a flat note but fell since the beginning of the session. The Nepal Stock Exchange (Nepse) index fell below 2,800 mark in the morning and failed to make any notable recovery thereafter. The benchmark dipped around 100 points in the afternoon, before a small rebound helped the index close slightly off its intraday low. Nepse registered a loss of 79.79 points to end trading at 2,749.85.

The Nepalese market has stretched its decline after failing to maintain 2,800 mark. Speculations on the review of monetary policy which is due later this November has kept the investors from taking heavy buying positions. Total turnover stood at Rs. 6.5 billion.

Losses were led by Finance and Development Bank stocks as both sectors closed more than 5% lower. ‘Others’ sub-index fell 4.12%, while Non-Life Insurance and Hotels & Tourism segments lost around 3% apiece. All other segments came under substantial pressure. Heavyweight banks fell 1.91%.

Shares of Nabil Bank Ltd were traded the most with a turnover of Rs. 298 million. Sahas Urja Ltd and Api Power Company Ltd registered transactions of Rs. 258 million and Rs. 224 million. National Hydropower Company Ltd, Prime Commercial Bank Ltd and Arun Valley Hydropower Development Company Ltd were among other actively traded stocks.

Newly listed shares of Terathum Power Company Ltd, Manushi Laghubitta Bittiya Sanstha Ltd and Sahas Urja Ltd rallied 10% each. Unilever Nepal Ltd rose 1.73%. Prime Commercial Bank Ltd also added 1.57% after the commercial bank announced 16% bonus shares for the year 20/21. Support Laghubitta Bittiya Sanstha Ltd and Nepal Infrastructure Bank Ltd inched marginally higher.

On the other hand, Mahalaxmi Bikas Bank Ltd and ICFC Finance Ltd gave up their previous day gains tumbling to hit the lower circuit of 10%. Mithila Laghubitta Bittiya Sanstha Ltd, Goodwill Finance Company Ltd, Universal Power Company Ltd and Samudayik Laghubitta Bittiya Sanstha Ltd dropped around 7% each. Mainly, energy and finance stocks dominated the losers’ list.

As per the ARKS technical analysis, a strong bearish candlestick was made on the daily Nepse chart suggesting sellers gaining momentum after buying pressure experienced exhaustion above 2,800 mark. Dipping volumes also indicates lack of enthusiasm making a drop towards 2,700 level likely. Both RSI and MACD indicators point towards possible correction in the sessions ahead.

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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