Daily Market Commentary

Nepse flat after 4-day decline

Published On: November 14, 2021 07:00 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Nov 14: Stocks fell sharply in the beginning of Sunday’s session as the benchmark dropped over 20 points in the first fifteen minutes. A recovery ensued pushing the market back towards the opening level, but the index traded mostly in red throughout the session. At the close, Nepse ended essentially flat with a minor loss of 1.38 points. The benchmark stood at 2,688.92.

Following a series of notable dips, the index finally found some footing around 2,680 mark. However, a clear direction is yet to be seen as turnover has remained in the lower side of the spectrum. Investors are primarily waiting for the monetary policy review by NRB before making any notable move in the equity market.

Sectors ended mixed with Development Bank sector rising 3.17%. ‘Others’ sub-index climbed 1.94%, while Finance and Hotels & Tourism sectors added more than 1%. Manufacturing & Processing, Non-Life Insurance and Microfinance sectors also inched higher. On the other hand, Investment Index tanked 3.56%. Trading, Mutual Fund, Life Insurance and Banking sub-indices fell marginally.

Mahalaxmi Bikas Bank Ltd and ICFC Finance Ltd were traded the most with respective turnovers of Rs. 274 million and Rs. 243 million. Nabil Bank Ltd and Lumbini Bikas Bank Ltd saw turnovers of around Rs. 160 million. Sahas Urja Ltd, Arun Kabeli Power Ltd and Api Power Company Ltd were among other top turnover stocks.

Bottlers Nepal Terai Ltd, Manushi Laghubitta Bittiya Sanstha Ltd, Terathum Power Company Ltd and Mahalaxmi Bikas Bank Ltd rallied around 10%. Kalika Power Company Ltd, Ngadi Group Power Ltd, Saptakoshi Development Bank Ltd and Lumbini Bikas Bank Ltd were among other major gainers.

Conversely, Hydroelectricity Investment & Development Company Ltd hit the circuit of negative 10% after listing of its right shares. Sahas Urja Ltd, Naya Sarathi Laghubitta Bittiya Sanstha Ltd and Summit Laghubitta Bittiya Sanstha Ltd followed suit with declines of 8.74%, 3.26% and 3.05%.

As per the ARKS technical analysis, the index formed a small spinning top candlestick which suggests indecision. Momentum indicators also show easing selling pressure, making a rebound likely given it is supported by increase in volumes. 2,680 support has still held ground, while the immediate resistance lies at 2,850 mark.

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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