Daily Market Commentary

Stocks end slightly lower to cap high volume week

Published On: August 19, 2021 07:16 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, August 19: The equity market opened above 3,200 mark but succumbed to selling pressure in the latter trading hours. The benchmark Nepal Stock Exchange (Nepse) index hovered around 3,200 mark for most of the afternoon. A final hour dip saw the index close more than 18 points lower at 3,180.86.

Following a jump of almost 40 points in the day earlier, the index saw correction amidst profit booking seen in most of the sectors. However, turnover has remained upbeat with another active session on Thursday. Over Rs. 20 billion worth of equities changed hands on the day.

Majority of the sectors closed the day in red. Investment sub-index fell sharply with a 4.03% dip. Hydropower sub-index also tanked 3.18%. Development Bank and Finance sectors also corrected around 2.5% each. Banking, Hotels & Tourism, Mutual Fund and Manufacturing & Processing segments fell marginally. On the other hand, Non-Life Insurance and Life Insurance sectors rose 3.19% and 2.59%. ‘Others’, Trading and Microfinance sectors also closed the day in green.

Arun Kabeli Power Ltd and Arun Valley Hydropower Development Company Ltd saw massive turnovers with both scrip registering turnovers of over Rs. 1 billion each. National Hydropower Company Ltd, Ridi Hydropower Development Company Ltd and Hydroelectricity Investment & Development Company Ltd were among other actively traded stocks. Kamana Sewa Bikas Bank Ltd, Ngadi Group Power Ltd and Jyoti Bikas Bank Ltd were the other top turnover stocks.

Jeevan Bikas Laghubitta Bittiya Sanstha Ltd and Ridi Hydropower Development Company Ltd were the day’s biggest gainers registering advances of 10% and 8.59% apiece. Sana Kisan Laghubitta Bittiya Sanstha Ltd and CEDB Hydropower Development Company Ltd rallied around 7% apiece. United Insurance Company Ltd, Lumbini General Insurance Co. Ltd and General Insurance Company Ltd also rose more than 5% apiece.

Conversely, Hydroelectricity Investment & Development Company Ltd, Khanikhola Hydropower Co. Ltd and Panchakanya Mai Hydropower Ltd plunged to hit the lower circuit level of 10% each. Ngadi Group Power Ltd, Mountain Hydro Nepal Ltd, Ankhu Khola Jalvidhyut Company Ltd and Barun Hydropower Co. Ltd also suffered losses of over 7% each. Besides, mainly energy stocks notable retracements.

As per the ARKS technical analysis, the index formed a small bearish candlestick reflecting minor retracement in the current context. Sellers dominated the latter half of the session with heavy profit booking seen in most of the sectors. Technical gauges also show slight loss of momentum making a correction or consolidation likely in the current context. Meanwhile, immediate support can be taken as 3,150 line while resistance lies at 3,200 level.

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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