Daily Market Commentary

Nepse starts the week on a lower note

Published On: March 7, 2021 08:00 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, March 7: The benchmark Nepal Stock Exchange (Nepse) index opened in the green note in the pre-opening session, but the index pulled back to trade in the negative territory within few minutes of trading session. Although the market tried to recoup its losses within half an hour of trading, but again the index struggled and traded in the negative bias for most of the trading session. At the end, the equity index closed the day 21.58 points lower at 2485.10.

With investors still watchful of developments in the current political scenario, investors are still holding back from taking any major buying positions in the current context. Nonetheless, the bourse recorded the total turnover of Rs. 5.005 billion.

All sectors closed the day in a lower note except Hotels & Tourism and Hydropower sectors. Their sub-index rose by 2.24% and 0.92% respectively. Trading sub-index tanked 4.68% on the day. Manufacturing & Processing, Microfinance, Life Insurance and Investment sectors decline above 1% each. Banking, Development Bank, Finance, Non-Life Insurance, Others and Mutual Fund ended in a lower note with a slight decrement.

Nepal Infrastructure Bank Ltd was the most actively traded stock with a turnover of Rs. 427 million. It was followed by Nepal Bank Ltd and Upper Tamakoshi Hydropower Company Ltd’s shares which registered the total transaction worth of Rs. 396 million and Rs. 242 million correspondingly. Similarly, Global IME Bank Ltd, Nepal Insurance Co. Ltd, Shikhar Insurance Co. Ltd, Nepal Reinsurance Company Ltd, Neco Insurance Company Ltd followed suit with turnovers of Rs. 242 million, Rs. 171 million, Rs. 157 million and Rs. 147 million respectively.

Chandragiri Hills Ltd, Nepal Hydro Developers Ltd and Rairang Hydropower Development Company Ltd were the major gainers on Sunday. Each scrip rallied to hit the upper circuit limit of positive almost 10%. Excel Development Bank Ltd, Nepal Insurance Co. Ltd and Universal Power Company Ltd also witnessed major advance in the session and jumped by 7.14%, 6.54% and 5.11% respectively. Reliance Finance Ltd, Upper Tamakoshi Hydropower Ltd, Himalayan Power Partner Ltd and NIBL Pragati Fund were the other major gaining scrips in the Sunday’s trading session.

On the other hand, National Hydro Power Company Ltd and Salt Trading Corporation came under pressure and their shares price fell by 5.52% and 5% respectively. Bottlers Nepal (Terai) Ltd, Kisan Laghubitta Bittiya Sanstha Ltd, Siddhartha Investment Growth Scheme 2, Shree Investment Finance Ltd, Support Microfinance Bittiya Sanstha Ltd and Gurans Life Insurance Company Ltd were the other major laggards with declines of more than 3% each.

As per the ARKS technical analysis, the market formed a bearish candlestick on the day. On Sunday’s trading session, the index failed to close above 2500 psychological mark. Besides, volumes also dropped on the day. A deeper correction may see the index test the strong psychological support at 2,360mark.

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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