Daily Market Commentary

Nepse up marginally after Sunday’s rally

Published On: July 19, 2021 08:54 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, July 19: Stocks opened firmly higher before profit booking in almost all of the sectors pulled the index sharply towards the opening level. However, the Nepal Stock Exchange (Nepse) index managed to maintain positive bias throughout the latter trading hours. The index traded more than 30 points higher at mid-day, but gave up gains partially towards the close. Nepse closed up by 13.80 points at 2,994.42.

After a strong start to the new fiscal year, the benchmark stretched its gains in the second day of the year. The equity market garnered confidence after Prime Minister Sher Bahadur Deuba won the vote of confidence from the parliament securing his position. Hence, a more stable outlook on the political front helped the index register gains of more than 100 points in just 2 trading days. Turnover also improved with back to back sessions with transactions of over Rs. 11 billion. 

Most of the sectors ended in positive territory. Trading sector rose the most as its sub-index added 5.22%. Investment sector followed suit with a 1.47% gain. ‘Others’, Non-Life Insurance, Mutual Fund, Manufacturing & Processing, Banking and Life Insurance sectors ended marginally higher. On the other hand, Finance sub-index dipped 1.17%. Hotels & Tourism, Development Bank, Microfinance and Hydropower sub-indices also ended in red.

Shares of NIC Asia Bank Ltd and Nabil Bank Ltd were traded the most with turnovers of Rs. 354 million and Rs. 331 million. Nepal Bangladesh Bank Ltd, Rastriya Beema Company Ltd Promoter Share and Synergy Power Development Ltd, subsequently, saw turnovers of Rs. 313 million, Rs. 310 million and Rs. 290 million. NMB Bank Ltd, Arun Kabeli Power Ltd, Manjushree Finance Ltd and Siddhartha Bank Ltd were the other active stocks. 

Synergy Power Development Ltd and Bishal Bazar Company Ltd were the best performers of the day with advances of 10% and 9.20%, respectively. Nepal Insurance Company Ltd, Citizen Investment Trust and Himalaya Urja Bikas Company Ltd posted gains of 7.57%, 6.40% and 5.98%. Arun Kabeli Power Ltd, Himal Power Partner Ltd, NRN Infrastructure and Development Ltd and Salt Trading Corporation Ltd were among other major gainers. 

Meanwhile, Gurkhas Finance Ltd and Manjushree Finance Ltd’s shares came under pressure with declines of 3.60% and 3.20%. Hydroelectricity Investment & Development Company Ltd fell 3.02%. Liberty Energy Company Ltd, RMDC Laghubitta Bittiya Sanstha Ltd, Ghalemdi Hydro Ltd and Shree Investment & Finance Co. Ltd closed more than 2% lower on Monday. 

On the technical front, the index formed a small spinning top candlestick on the daily timeframe with long wicks on either side. The long wick suggests high volatility, while a relatively modest closing point reflects uncertainty in the equity market. Though buyers dominated the early part of the session, profit taking in majority of sectors helped keep gains in check. 3,000 resistance mark has held firmly, a breakout of which suggests extension of the upward move 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)

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