Daily Market Commentary

Nepse snaps 2-day losing run

Published On: April 27, 2021 07:57 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, April 27: Stocks witnessed a sharp rally in the morning with the benchmark reaching as high as 2,544 mark. Market continued to witness strength in the latter trading hours pushed the index higher. Following a steady surge until the closing bell, Nepse closed Tuesday’s session with 92.46 point’s gain at 2,599.07.

However, the market registered the lower turnover compared to the preceding trading session. Only Rs. 5.109 billion transaction exchanged in the market.

All the sectors ended on positive territory. Hydropower and trading sub-indices jumped 6.48% and 5.55% respectively. Non-Life Insurance, Manufacturing & Processing, Microfinance and Investment sub-indices rallied above 4% each. It was followed by shares of Development Bank, Others and Life Insurance also advance above 3% apiece. Hence, Hotels and Tourism and Mutual Fund also closed in the higher note. 

Among actives, Upper Tamakoshi Hydropower Company Ltd and Nepal Infrastructure Bank Ltd’s shares were heavily traded with turnover of Rs.238 million and Rs. 211 million respectively. Nepal Reinsurance Company Ltd, Nabil Bank Ltd and Chhimek Laghubitta Bittiya Sanstha Ltd followed suit with transactions of Rs. 145 million, Rs. 135.78 million and Rs. 135.26 million respectively. Nepal Life Insurance Company Ltd, API Power Company Ltd and NICA Asia Bank Ltd were among other actively traded shares. 

Among gainers, Upper Tamakoshi Hydropower Company Ltd hit the upper circuit limit of 10%. Bishal Bazar Company Ltd, Mahila Laghubitta Bittiya Sanstha Ltd, United Insurance Co (Nepal) Ltd, Summit Laghubitta Bittiya Sanstha Ltd, Multipurpose Company Ltd, Global IME Laghubitta Bittiya Sanstha Ltd, Arun Valley Hydropower Company Ltd, Chhyangdi Hydropower Ltd, Unnati Sahayatra IME Laghubitta Bittiya Sanstha Ltd and United IDI Mardi RB Hydropower Ltd also remained locked in the upper circuit limit with a gain above 9% each.

On the other hand, 12% ICFC Finance Ltd Debenture 2083, 10.25% Global IME Bank Ltd Debenture 2080/81, 10.25% SBL Debenture 2083, NIBL Samriddhi Fund 1 and Goodwill Finance Ltd suffered the most and decline 1% on the day. Similarly, shares of 10% Nepal SBI Bank Debenture 2086, Laxmi Equity Fund, Kumari Equity Fund, 10.25% Machhapuchhre Bank Ltd Debenture 2085 also closed in red with meager decrement.

As per the ARKS technical analysis, the market formed a strong bullish candlestick on the day, which helped the index recoup prior day losses. Consequently, the index has shown some sign of recovery but forth coming trading is still crucial in determining the possible move of the market. Hence, a significant rebound accompanied by improved volumes in the coming sessions will substantiate the reversal further.

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