Daily Market Commentary

Nepse rally almost 70 points

Published On: November 16, 2021 06:56 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Nov 16: The local equity market saw strength since the beginning of Tuesday’s trading hour and rose almost 18 points. However, the benchmark corrected immediately but held its foothold in green. Thereafter, stocks continued to surge in the latter trading hours with all sectors ending firmly in green. At the close, Nepse registered a gain of 69.22 to settle at 2,784.57.

Market continued to remain positive for the second straight session.  Mostly hydropower and Others sectors push the index in upward momentum. However, the index is yet to see a major recovery, while still trading around 415 points lower than its all-time high. Although the turnover has managed to increase and Rs. 5.52 billion worth of equities traded on Tuesday.

Others and Hydropower segments were the leaders with the respective indices jumping 5.95% and 5.39% respectively. Finance, Hotel and Tourism, Trading and Development Bank sector climbed 3.21% 2.14%, 2.04% and 2.02% correspondingly. Similarly, all the other sectors also closed firmly in green.

Among active companies, Mahalaxmi Bikas Bank Ltd, National Hydro Power Company Ltd and API Power Company Ltd posted a turnover of Rs. 372 million, Rs. 304 million and Rs. 233 million respectively. Similarly, Lumbini Bikas Bank Ltd, Nepal Doorsanchar Company Ltd, Nepal Life Insurance Company Ltd and Hydroelectricity Investment and Development Company Ltd recorded the volume of Rs.182 million, Rs.164 million, Rs.155 million and Rs.151 million correspondingly. Janaki Finance Ltd, Arun Valley Hydropower Company Ltd and Nabil Bank Ltd were the other heavily traded shares of the session.

Six Companies hit the upper circuit limit of 10% on Tuesday which includes Nepal Bangladesh Bank Ltd, Nepal Doorsanchar Company Ltd, Mahalaxmi Bikas Bank Ltd, Panchakanya Mai Hydropower company Ltd, Upper Tamakoshi Hydropower Company Ltd, Mailung Khola Jalavidhyut Company Ltd. On Tuesday, Upper Tamakoshi Hydropower Company Ltd has reported a net profit of Rs. 860 million in the first quarter of the current fiscal year 2078/79. The company earned Net Profit for the first time since the company has gone into full operation in the last 2 months. Besides, several other hydropower stocks locked in the gaining list on the day.

Vijaya Laghubitta Bittiya Sanstha Ltd, 10% Nepal SBI Bank debenture 2086, Laxmi Equity Fund and Mithila Laghubitta Bittiya Sanstha Ltd shares suffered and decline by 2.37%, 2.34%, 1.76% and 1% respectively. NLG Insurance Company Ltd, 8.75% Prime Debenture 2085, Swabhimaan Laghubitta Bittiya Sanstha ltd and Shikhar Insurance Company Ltd ended in negative territory with a slight decrease.

As per the ARKS technical analysis, the market has formed a bullish candlestick pattern forming higherlow in the chart. In the coming week, the market might move upward to form a higher high level and technical indicators also suggest positive momentum in the coming session. However, the key 2,800 mark must be watched before taking any significant position on the buying side. A breakout above 2,800 with volume in the coming sessions can see the index make a decent recovery towards 3,000. On the other hand, immediate support can be taken as 2,680 psychological line.  

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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