Daily Market Commentary

Nepse gives up Monday’s gains to end near 2,500

Published On: December 7, 2021 07:05 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Dec 7: Stocks extended prior day’s gains with a sharp rally in the first trading hour. However, the benchmark gave up most of its gains by mid-session to finally trade in red in the last trading hour. At Tuesday’s close, Nepse ended at 2,508.91 – down 37.18 points against the session earlier.

Despite the index’s attempt of recovery with a 32-point gain on Monday, the index extended its downfall in Tuesday’s session. Lack of confidence amidst liquidity crunch is evident among investors. Turnover also faltered to Rs. 3 billion.

Most of the sectors ended in negative territory dragged by the broader market’s dip. Only Mutual Fund and Trading sectors managed to eke out gains. Finance, Development Bank and Others sectors suffered with declines of 3.85%, 2.99% and 2.84%. All other segments closed in red.

Shares of Prime Commercial Bank Ltd were traded the most ahead of its book closure for Annual General Meeting. The bank registered a turnover of Rs. 123 million. Mahalaxmi Bikas Bank Ltd, ICFC Finance Ltd and Api Power Company Ltd posted turnovers of Rs. 119 million, Rs. 110 million and Rs. 104 million. Hydroelectricity Investment and Development Company Ltd, Nabil bank Ltd and Nepal Telecom Ltd were among other actively traded stocks.

Civil Laghubitta Bittiya Sanstha Ltd rose 3.19% followed by Ghalemdi Hydro Ltd which added 2%. Jyoti Life Insurance Ltd, Naya Sarathi Laghubitta Bittiya Sanstha Ltd and Salt Trading Corporation also saw minor gains.

On the other hand, ICFC Finance Ltd suffered the most with the class ‘C’ financial institution closing over 7% lower. Kalika Laghubitta Bittiya Sanstha Ltd and Synergy Power Development Ltd fell more than 6% each. Himal Power Partner Ltd, Reliance Finance Ltd, Shree Investment and Finance Company Ltd, Central Finance Company Ltd and Mero Laghubitta Bittiya Sanstha Ltd tumbled more than 5%.

As per the ARKS technical analysis, the index formed a strong bearish candlestick reflecting weakness. However, psychological 2,500 mark has still held ground as a major support for the equity market. Both RSI and MACD momentum indicators indicate sellers control in the current juncture. A break below 2,500 mark can see the index make further strides to the downside.

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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