Daily market commentary

Nepse falls 35 points partially erasing previous week gains

Published On: April 18, 2021 07:55 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, April 18: The benchmark equity index witnessed feeble momentum at the starting of the week. The equity index fell sharply in the first trading hour but managed to recoup its earlier losses to trade in the breakeven point. However, the benchmark index immediately came under pressure and remained on the negative side of the spectrum in the latter trading hours. In the end, the market closed at 2699.51- down 35.89 points against earlier session. Over Rs. 8.80 billion worth of shares changed hands on Sunday’s trading session.

Majority of the sectors ended in a negative note except Mutual Fund sectors which rose 0.46%. Trading and Hotels and Tourism segment fell by 3.27% and 2.32% respectively. Likewise, Banking, Development Bank, Hydropower, Finance, Non-Life Insurance,Manufacturing & Processing and Others sub-indices declined over 1% apiece. Similarly, shares of Microfinance, Life Insurance and Investment sectors fell slightly on the day.

Shares of Everest Bank Ltd and NIC Asia Laghubitta Bittiya Sanstha Ltd were the most actively traded stocks of the trading session. The scrips saw turnovers of Rs. 876 million and Rs. 553 million, respectively. Nepal Infrastructure Bank Ltd, Arun Kabeli Power Ltd, NIC Asia Bank Ltd and Kamana Sewa Bikas Bank Ltd followed suit with transactions of Rs. 279 million, Rs. 267 million, 263 million and 247 million respectively. Hydroelectricity Investment and Development Bank Ltd, Nepal Credit and Commerce Bank Ltd and Upper Tamakoshi Hydropower Company Ltd were the other heavily traded shares.

Mahila Laghubitta Bittiya Sanstha Ltd, Jyoti Life Insurance Company Ltd, Dibyashwori Hydropower Ltd and Nepal Hydro Developers Ltd were the major winners with gains of above 9% each. NRN Infrastructure and Development Bank Ltd, Joshi Hydropower Development Company Ltd and Arun Kabeli Power Ltd jumped by 5.86%, 5.07% and 4.46% respectively. Union Hydropower Company ltd, Hydroelectricity Investment and Development Bank Ltd, Laxmi equity fund, NIC Asia Growth Fund and Chhyangdi Hydropower Ltd followed suit and registered gains of over 2% each.

On the other hand, shares of Goodwill Finance Co. Ltd came under pressure. The stock price tanked by 5.09%. It was followed by Karnali Development Bank Ltd, Shangrila development Bank Ltd, Jyoti Bikas Bank Ltd and Multi-Purpose Finance Company Ltd, which suffered losses of over 4% apiece. Green Development bank Ltd, Guheshwori Merchant bank & Finance Co. Ltd, Salt Trading Corporation and Lumbini General Insurance Co. Ltd were the other losing scrips for the day.

On the technical front, the index made a bearish candlestick on the daily chart indicating possibility of some correction going further into other sessions of the week. The day also marks some correction after fourth straight day of market rally. An immediate support can be taken as 2,650 mark, a breach of which can see the index test apsychological support level at 2,600. On the other hand, a rebound from the respective level will see 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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