Weekly Market Commentary

Nepse snaps 5-week gaining streak

Published On: April 23, 2021 09:30 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, April 23: After shooting up by over 61 points in the previous week, this week’s trading was mainly dominated by sellers. The Nepal Stock Exchange (Nepse) index witnessed a notable dip with the index sinking 35.89 points on Sunday followed by a 37.57 points decline on Monday. While the index remains unchanged on Tuesday’s trading and closed by a slight increment of 2.68 points. However, the market again drop falling more than 32 points on Wednesday. The selling pressure eased off slightly on Thursday as the market posted the gains of 15.80 points. Overall, the loss tally for the week stood at 87.45 points with the bourse capping off week at 2,648.01.

This week the market test the immediate support level of 2,650 and closed the week’s trading marginally lower than aforementioned level. However, in the last trading days, it looks like the selling pressure has eased slightly off since most of the companies are trading in its lower price range. However, the market is yet to show signs of notable up momentum as volumes have weakened up in the current trading sessions. Over Rs. 32.79 billion worth of securities were exchanged this week. 

Sensitive Index declined by 3.22%.  All the sectors closed the week on lower note. Hotels and Tourism index stocks suffered the most and lost 10.13%. Trading, Banking, Non-Life Insurance and Investment sub-indices followed suit with declines of 4.71%, 4.47%, 3.55% and 3.26% respectively. Development Bank, Manufacturing & Processing, Microfinance and Other sub-indices struggled and drop over 2% each. All other segments closed the week firmly lower.

In terms of ARKS technical analysis, the index formed a bearish candlestick reflecting sellers’ dominance in this week’s trading. The candlestick also marks the index’s first correction in weeks. Momentum indicators point towards loss of momentum making correction or consolidation likely in the present context. Nonetheless, the overall medium term uptrend has remained intact pointing towards possibility of further gains over the longer run. 

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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