Daily Market Commentary

Nepse falls 11 points to begin week

Published On: November 22, 2021 12:54 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Nov 22: The benchmark opened Sunday’s session in green, but pulled back sharply at mid-day losing as much as 20 points. After trading mostly flat in the remaining trading hours, the index recouped some of its earlier losses. Nepse ended the day with a dip of 11.50 points at 2,757.53.

Following some recovery in the week earlier, the index witnessed slight dips in the recent sessions. However, turnover has remained modest on the back of cautious stance taken by investors ahead of the monetary policy review. Only Rs. 4.36 billion worth of shares were traded on the day. 

Barring Hydropower and Manufacturing & Processing sectors, all segments ended in red. Trading sub-index fell the most losing 1.87% on the day. ‘Others’ and Hotels and Tourism sub-indices also dropped more than 1 % apiece. All other sub-groups saw minor losses. 

Mahalaxmi Bikas Bank Ltd was traded the most with a total transaction worth Rs. 510 million. National Hydropower Company Ltd, Nepal Telecom Ltd and Himal Dolakha Hydropower Company Ltd followed suit with turnovers of Rs. 238 million, Rs. 226 million and Rs. 215 million. Upper Tamakoshi Hydropower Ltd, Arun Kabeli Power Ltd, Nabil Bank Ltd and Hydroelectricity Investment and Development Ltd were among other actively traded stocks. 

Manushi Laghubitta Bittiya Sanstha Ltd and Narayani Development Bank Ltd shot up by 10%. Corporate Development Bank Ltd, Himal Dolakha Hydropower Company Ltd and Shiva Shree Hydropower Ltd also saw strength with respective gains of 8%, 6.4% and 4.19%.

Terathum Power Company Ltd led the decliners list plunging 4.21%. ICFC Finance Ltd also came under pressure and gave up almost 4%. Premier Insurance Company Ltd, Mailung Khola Jalvidhyut Company Ltd and National Microfinance Bittiya Sanstha Ltd dropped by over 3% apiece. 

As per the ARKS technical analysis, the index formed a small bearish candlestick on the daily timeframe. Despite the drop, the index has continued to trend sideways amidst consolidation. Immediate support lies at 2,680 mark, while resistance lies at 2,850. Momentum indicators also reflect indecision in the current juncture. 

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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