Daily market commentary

Nepse falters for a fifth straight day

Published On: March 15, 2021 07:19 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, March 15: The Nepal Stock Exchange (Nepse) index fell sharply in the morning to trade around 2,380 mark in the first few minutes of the session. A sharp recovery followed suit pushing the index around 25 points higher at mid-day. The rally, nonetheless, remained short lived as the index pulled back to the opening level to trade flat in the afternoon. A slump in the closing hour pushed the benchmark 18.07 points lower to finish at 2,380.19.

The index extended its correction further as the current political instability continued to weigh on the nation’s equity market. Investors have remained cautious in the sessions of late, consequently, keeping the bourse from making any significant recovery. The indecisiveness has also had a notable impact in the market activity. Only Rs. 4.25 billion worth of securities were traded on Monday.

Most of the sectors ended the day in red while only few managed to settle in positive territory. Hotels and Tourism index jumped 3.69% on the back of extended surge of Chandragiri Hills Ltd. Trading index rose 1.48%, while Investment Index climbed 0.57%. Manufacturing & Processing and Mutual Fund sectors also inched higher. On the other hand, ‘Others’ and Non-Life Insurance segments lost the most. The respective indices fell 1.97% and 1.6%. Banking sector also fell 1%. All other sub-indices witnessed modest declines.

Nepal Infrastructure Bank Ltd led the list of active stocks with a turnover of Rs. 436 million. Upper Tamakoshi Hydropower Ltd followed with a total transaction of over Rs. 298 million. Nabil Bank Ltd, Nepal Life Insurance Company Ltd, NIC Asia Bank Ltd and Nepal Reinsurance Company Ltd were among other actively traded stocks.

On the gainers front, Chandragiri Hills Ltd saw the biggest percentage gain with the stock price rallying almost 10%. Ghalemdi Hydro Ltd, Panchakanya Mai Hydropower Ltd and Ankhu Khola Jalavidhyut Company Ltd also shot up by over 9% each. Mahuli Samudayik Laghubitta Bittiya Sanstha Ltd jumped 5.08%. Mainly, other energy stocks witnessed strength in the session.

In contrast, Himal Power Partner Ltd stretched its correction giving up more than 6% on the stock price. Suryodaya Laghubitta Bittiya Sanstha Ltd, Prudential Insurance Company Ltd and Arun Valley Hydropower Development Company Ltd fell over 4% each. Gurans Laghubitta Bittiya Sanstha Ltd, Support Laghubitta Bittiya Sanstha Ltd, Nepal Telecom Ltd and Liberty Energy Company Ltd were among other major losing stocks.

As per the ARKS technical analysis, the index extended its short-term downward movement closing below 2,380 point’s mark. Technical indicators tilting downwards suggest that the selling pressure is yet to ease off. However, with the index inching close to a major support at around 2,370 mark, a rebound can also be expected. Further, an increase in volume along with a recovery can provide opportunities to take buying positions in the equity market.

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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