Daily Market Commentary

Nepse falls 24 points partially erasing previous day gains

Published On: March 22, 2021 08:10 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, March 22: Despite opening Monday’s trading in the green, the Nepalese equity market gave up morning gains to trade in negative territory throughout the session. The equity index fell sharply in the first half an hour but managed to make a brief recovery. However, the benchmark remained under pressure after mid-day finally ending the session 24.06 points lower against Sunday’s close. The Nepse index finished at 2,514.40.

The majority of the sectors ended on a negative note except Hydropower and Hotel and Tourism sectors. The groups, sub-indices shot up by 4.79% and 3.47%, respectively. Manufacturing & Processing and Microfinance segment fell by over 2% each. Likewise, Banking, Non-Life Insurance, Others, Life Insurance and Investment sub-indices declined over 1% apiece. Similarly, shares of Development Bank, Finance and Mutual Fund sectors fell slightly on the day.

Shares of Upper Tamakoshi Hydropower Company Ltd and Nepal Bangladesh Bank Ltd were the most actively traded stocks of the trading session. The scrips saw turnovers of Rs. 469 million and Rs. 314 million, respectively. Nepal Life Insurance Company Ltd, Deprosc Laghubitta Bittiya Sanstha Ltd, and Nepal Infrastructure Bank Ltd followed suit with transactions of Rs. 262 million, Rs. 254 million and 197 million. Nabil Bank Ltd, Shivam Cements Ltd, Neruda Laghubitta Bittiya Sanstha Ltd, and Nepal Reinsurance Company Ltd were the other heavily traded shares.

Upper Tamakoshi Hydropower Company Ltd and Chandragiri Hills Ltd led the gainers list hitting the upper circuit of positive 10%. Likewise, shares of Arun Valley Hydropower Company Ltd and Ankhu Khola Jalabidhyut Company Ltd jumped by 7.44% and 6.21% respectively. Womi Microfinance Bittiya Sanstha Ltd, Sanjen Jalabidhyut Company Ltd, Green Life Hydropower Company Ltd, Rasuwagadhi Hydropower Company Ltd and Chilime Hydropower Company Ltd followed suit and registered gains of over 5% each.

On the other hand, Prudential Insurance Co. Ltd and Support Microfinance Bittiya Sanstha Ltd came under pressure. The stock price tanked by 4.71% and 4.47% respectively. It was followed by Corporate Development Bank Ltd, Aarambha Chautari Laghubitta Bittiya Sanstha Ltd, Kalika Microcredit Laghubitta Bittiya Sanstha Ltd, RMDC Laghubitta Bittiya Sanstha Ltd, Shree Investment Finance Co. Ltd and Shivam Cements Ltd, which suffered losses of over 3% apiece.

On the technical front, the index made a bearish candlestick on the daily chart indicating the possibility of some correction going further into other sessions of the week. The day also marks some correction after the third straight day of the market rally. Immediate support can be taken as 2,500 psychological marks, a breach of which can see the index test a minor support level at 2,460. On the other hand, a rebound from the respective level will see an extension of the upward movement.

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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