Daily Market Commentary

Nepse recoup Monday’s losses as Development Bank stocks surge

Published On: November 2, 2021 07:45 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Nov 2: Stocks traded in red in the morning as the benchmark Nepse fell around 30 points at mid-day. However, the bourse staged a steady recovery thereafter. The index climbed towards the opening level in the afternoon with a last hour surge pushing the index further in positive territory. At the close, Nepse stood at 2,843.62 – up 23.76 points against the session earlier. 

The benchmark held ground above 2,800 mark, despite a drop below the psychological level on intra-day basis. With buyers slightly dominating the session, the index managed to close in green. Trading volumes, nonetheless, dipped to around Rs. 6 billion. 

Most of the segments ended in green, while only Trading, Investment and Banking Sectors ended in negative territory. ‘Others’ segment rallied 3.77%, while Development Bank stocks jumped by 3.55% on average. Finance, Hydropower and Non-Life Insurance stocks also ended in green and closed more than 1% higher.

Mahalaxmi Bikas Bank Ltd was the most heavily traded stock of the day with turnover of Rs. 470 million. Kamana Sewa Bikas Bank Ltd, Nepal Reinsurance Company Ltd and Nabil Bank Ltd posted turnovers of Rs. 222 million, Rs. 213 million and Rs. 212 million. Lumbini Bikas Bank Ltd, Jyoti Bikas Bank Ltd, Ridi Hydropower Company Ltd, RMDC Laghubitta Bittiya Sanstha Ltd, Arun Valley Hydropower Company Ltd and ICFC Finance Ltd were among other actively traded stocks. 

Sahas Urja Ltd and Goodwill Finance Company Ltd were the major gainers with rallies of over 9% apiece. Nepal Reinsurance Company Ltd, Kalika Power Company Ltd and Ridi Hydropower Company Ltd followed suit with gains of over 8% each. Karnali Bikas Bank Ltd, Mountain Hydro Nepal Ltd, Lumbini Bikas Bank Ltd and Jyoti Bikas Bank Ltd also saw strength. 

Bishal Bazar Company Ltd, Nepal Bangladesh Bank Ltd and RMDC Laghubitta Bittiya Sanstha Ltd, Samudayik Laghubitta Bittiya Sanstha Ltd, Infinity Laghubitta Bittiya Sanstha Ltd and Salt Trading Corporation fell around 2% each. Himalayan General Insurance Company Ltd, Swabhimaan Laghubitta Bittiya Sanstha Ltd and Kamana Sewa Bikas Bank Ltd were among other major losers.

As per the ARKS technical analysis, the index formed a small green candlestick suggesting buyers control on the day. However, with volumes dropping, the momentum is relatively feeble. Hence, given the market holds ground above the 2,800 mark with notable volume, the equity index will likely stretch its recovery. Both RSI and MACD show room for further upward movement. 

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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