Daily Market Commentary

Nepse posts modest gains to close above 2800

Published On: November 17, 2021 08:38 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Nov 17: The Nepal Stock Exchange (Nepse) index rose sharply on Wednesday morning and opened almost 30 points higher. Similarly, the market continued to hold its ground on a positive note for the most of the session. Nonetheless, the seller dominated in the last half an hour trading pushed the index slightly lower. At the end, Nepse registered a gain of 16.95 to close at 2801.52.

Turnover also managed to increase and recorded the above par volume with Rs. 7.37 billion worth of equities traded on Wednesday.

Others, Hydropower, Hotel and Tourism and Finance segments rose by 5.29%, 2.24%, 1.31% and 1.22% respectively. Similarly, Banking, Trading and Microfinance sectors also closed in green with a slight increase. Development Bank, Non-Life Insurance, Manufacturing & Processing, Life Insurance, Mutual fund and Investment ended in negative territory with a meager decrement.

Nepal Doorsanchar Company Ltd, Mahalaxmi Bikas Bank Ltd, Asian Life Insurance Co. Ltd were the most actively traded stocks with turnovers of Rs. 586 million, Rs. 385 million and Rs. 336 million respectively. National Hydropower Company Ltd, Garima Bikas Bank Ltd, API Power Company Ltd and Lumbini Bikas Bank Ltd and Arun Kabeli Power Company Ltd were among other top turnover stocks.

Panchakanya Mai Hydropower Company Ltd and Upper Tamakoshi Hydropower Company Ltd hit the upper circuit of positive 10%. Manushi Laghubitta Bittiya Sanstha Ltd, Terhathum Power Company Ltd, Nepal Bangladesh Bank Ltd, Mailung Khola Jalbidhyut Company Ltd also saw considerable strength and surge by 9.99%, 9.99%, 9.98% and 9.51% respectively.

Bottlers Nepal Terai Ltd, Mahalaxmi Bikas Bank Ltd and Gurans Life Insurance Company Ltd, on the other hand, struggled. The script tumbled by 7.47%, 7.41% and 4.13% respectively. Guheshwori Merchant Bank & Finance Co. Ltd, NRN Infrastructure and Development Bank Ltd and Sindhu Bikas Bank Ltd were the other major decliners which dropped above 3% each.

As per the ARKS technical analysis, the index formed a small green candlestick as buying momentum extended to Wednesday's trading. Nonetheless, formation of a small invented hammer points towards possibility of correction on profit booking. Besides, the immediately resistance around 2,850 has held ground a break of which is crucial for the index to make a new high and stretch its recovery. On the other hand, consolidation above 2,800 mark can provide ground for the equity market for further moves 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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