Daily Market Commentary

Nepse marginally lower after Tuesday’s lackluster trading

Published On: September 14, 2021 06:51 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Sept 14: After trading around 15 points higher briefly in the morning, the market saw slight retracement to trade around the opening level at mid-day. Stocks saw lackluster trading thereafterwith Nepsehovering around 2,940 pine in the afternoon. Further, a late correction dragged the index slightly in the red. At Tuesday’s close, Nepse lost 18.54 points to settle at 2,929.29.

After closing flat in the day earlier, the equity market saw slight selling pressure towards the end of the day. Investor confidence has remained subdued after a major correction from 3,200 mark. Even though a sharp recovery from 2,800 mark was seen in the week earlier, major buying pressure is yet to be observed in the current juncture. Turnover also fell sharply to Rs. 5.19 billion, the exchange’s lowest since early July.

All sectors turned red with Non-Life Insurance sector dipping the most. The sub-index lost 2.04%. Development Bank sub-index fell 1.19%. Manufacturing & Processing and Hydropower sectors dropped around 1% apiece. All other segments ended marginally in negative territory.

Shares of Arun Valley Hydropower Development Co. Ltd were traded the most as more than Rs. 270 million worth of the energy stock changed hands. Rairang Hydropower Development Company Ltd and United Modi Hydropower Ltd, next, saw turnovers of Rs. 228 million and Rs. 223 million. NIC Asia Bank Ltd, National Hydropower Company Ltd and Api Power Company Ltd were among other top turnover stocks.

Manakama Smart Laghubitta Bittiya Sanstha Ltd and Surya Life Insurance Ltd continued to lead the list of gainers. Both scrips rallied 10%. Rairang Hydropower Development Company Ltd, Kalika Laghubitta Bittiya Sanstha Ltd and Singati Hydro Energy Ltd also saw strength to close session firmly higher.

Rastriya Beema Company Ltd on the other hand corrected firmly. The non-life insurer lost 5.56%. Life Insurance Corporation Nepal, Ajod Insurance Ltd and NRN Infrastructure and Development Ltd tumbled more than 3%. Other hydro stocks followed suit.

As per the ARKS technical analysis, the index formed a small bearish candlestick indicating minor correction. However, volatility has subsided firmly with lack of conviction seen among investors. 2,900 mark can still be taken as a near term support, where a bounce can see the index maintain the current consolidation. A breach of 3,000 line can see the index make a notable move to the upside.

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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