Daily Market Commentary

Nepse inches higher while sectors end mixed

Published On: April 8, 2021 09:23 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, April 8: The equity index climbed over 17 points higher in the morning before reverting towards the opening level at mid-session. Stocks witnessed choppy session thereafter and traded between 2,670 to 2,680 mark in the final hours. At the close, Nepse ended Thursday’s trading 2.74 points higher at 2,674.36.

Local stocks witnessed subdued movement in Thursday’s session as investors remained slightly less enthused to take significant positions in the market. While some sectors saw buying interest, others witnessed slight selling pressure on the day. Turnover also dipped marginally in the last trading day of the week. Over Rs. 6.5 billion worth of shares changed hands.

Finance and Microfinance sectors were the major advancing groups. The group’s indices jumped 3.18% and 2.09%. Development Bank and Hotels & Tourism sectors rose around 0.7% each. Life Insurance, Mutual Fund and Banking Sub-indices also ended in green. On the other hand, ‘Others’ sector fell 1.07% followed by Hydropower and Trading sectors which lost over 0.8% apiece. Manufacturing & Processing, Non-Life Insurance and Investment groups also inched lower. 

5 companies remained locked in the upper circuit of positive 10%. NIC Asia Laghubitta Bittiya Sanstha Ltd, Greenlife Hydropower Ltd, Jyoti Life Insurance Ltd, Multipurpose Finance Ltd and Reliance Finance Ltd were the leading stocks. Global IME Laghubitta Bittiya Sanstha Ltd, Shree Investment & Finance Co. Ltd, Central Finance Co. Ltd and NRN Infrastructure and Development Ltd were among other top gaining stocks.

Meanwhile, Universal Power Company Ltd and Rasuwagadhi Hydropower Company Ltd suffered the most and declined 4.42% and 4.17%. Ajod Insurance Ltd, NIC Asia Growth Fund, Panchakanya Mai Hydropower Ltd and Ridi Hydropower Development Company Ltd also ended more than 3% lower. Similarly, other hydropower stocks came under pressure. 

The equity index formed a small bearish candlestick after closing below the opening level. Technical indicators, hence, point towards a period of consolidation in the current range after a rally of more than 200 points since mid-March. Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) also suggest a loss of upward momentum. Nonetheless, the uptrend has remained intact with immediate support at 2,600 psychological 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)


Leave A Comment