Daily Market Commentary

Nepse fails to extend gains

Published On: September 7, 2021 08:07 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, September 7: Nepse registered a positive start to Tuesday’s session with the Nepal Stock Exchange (Nepse) index opening almost 20 points higher. However, the index immediately pulled back to trade in the negative territory within a few minutes. Thereafter, the market witnesses the volatile session till the last hour being traded on lower note. At the close, Nepse fell 44.18 points to end the session at 2936.61.

In spite of the rise in the previous day, the benchmark index failed to maintain its momentum on Tuesday. With the fall in Nepse, turnover remained subdued as only Rs. 7.49 billion worth of equities changed hands.

Majority of the sector closed the day on a lower note except others and Mutual Fund sector with an increment of 1.01% and 0.56% respectively. Biggest losses came from Hotels and Tourism, Microfinance and Non-Life Insurance sub-group as the sub-index sank by 2.99%, 2.58% and 2.13% correspondingly. Banking, Trading, Development Bank, Hydropower, Finance, manufacturing & Processing, Life Insurance stocks decline more than 1% each. Investment index also saw a meager loss of 0.42%.

Shares of United Modi Hydropower Ltd and Arun Valley Hydropower Company Ltd were the most heavily traded scrip of the day with a total transaction of over Rs. 619 million and Rs.384 million respectively. API Power Company Ltd, Jyoti Bikas Bank Ltd, Ridi Hydropower Development Company Ltd, Himalayan Distillery Ltd followed suit with turnover of Rs.191 million, Rs.175 million, Rs.160 million and Rs.139 million correspondingly. Arun Kabeli Power Company Ltd, Nepal Bank Ltd, Kamana Sewa Bikas Bank Ltd and Lumbini Bikas Bank Ltd were among other actively traded stocks.

Among gaining scripts, Sanima Life Insurance Ltd hit the upper circuit limit of 10% on the day. United Modi Hydropower Ltd, Hydroelectricity Investment and Development Company Ltd, Unilever Nepal Ltd and Manakamana Smart Laghubitta Bittiya Sanstha Ltd climbed 7.78%, 5.16%, 5.03% and 4.01% correspondingly. Likewise Himal Dolakha Hydropower Company Ltd, Nepal Doorsanchar Company Ltd, Ridi Hydropower Development Company Ltd rose above 3% apiece.  

On the other hand, RMDC Laghubitta Bittiya Sanstha Ltd and RuRu Jalbidhyut Pariyojana Ltd tanked by 7.73% and 7.01% respectively. Progressive Finance Ltd, First Microfinance Development Company Ltd, Mountain Energy Company Ltd, RSDC Laghubitta Bittiya Sanstha Ltd and Naya Sarathi Laghubitta Bittiya Sanstha Ltd shares also came under pressure registering losses of over 5% each.

As per the ARKS technical analysis, the index formed a bearish candlestick on the daily timeframe. On Tuesday’s trading, the market erased partial gains of previous trading. Similarly, the technical indicators point towards slight correction or consolidation with strong support at the psychological 2,800 mark. A rebound with volume will indicate the possibility of another move to the upside. 

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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