Daily Market Commentary

Stocks flat after heavy fluctuations on Monday

Published On: December 15, 2021 07:00 PM NPT By: Republica  | @RepublicaNepal


KATHMANDU, Dec 15: Heavy buying enthusiasm was seen in the local equity market as the index shot up by over 70 points in the morning. A sharp pullback ensued, but the index managed to trade firmly in green for most of the first half of Wednesday’s trading. However, aggressive selling was witnessed in Wednesday afternoon. At the close, Nepse ended 4.23 points lower at 2,414.62.

With sentiment yet to improve sustainably, the Nepse index could not extend its gains for a second straight day. However, selling pressure has relatively subsided after Tuesday’s massive rally. Volumes improved slightly on the day as over Rs. 4.5 billion worth of equities changed hands.

Sectors ended mixed. Finance and Trading sector saw strength and rose 2.2% and 1.2%, respectively. Development Bank sub-index also added 0.95%. Investment, Hydropower, Non-Life Insurance, Manufacturing & Processing and Mutual fund segments also climbed higher. On the other hand, Hotels & Tourism sector tumbled 1.79%. ‘Others’, Banking, Microfinance and Life Insurance sectors also ended in red.

In terms of actives, Mahlalaxmi Bikas Bank Ltd and National Hydropower Company Ltd saw heavy transactions with turnovers of Rs. 166 million and Rs. 158 million. Api Power Company Ltd, Nabil Bank Ltd, Himalayan Distillery Ltd, Arun Kabeli Power Company Ltd and Arun Valley Hydropower Company Ltd were the other top turnover stocks.

Samling Power Company Ltd was the biggest gainer of the day. The scrip rallied 10%. Dibyashwori Hydropower Ltd, Ankhu Khola Jalvidhyut Company Ltd, ICFC Finance Ltd, Best Finance Company Ltd and Multipurpose Finance Ltd followed suit with gains of around 7% each.

Naya Sarathi Laghubitta Bittiya Sanstha Ltd, on the other hand, tanked 5.34%. Janaki Finance Ltd and Manjushree Finance Ltd also suffered with dips of 3.77% and 3.43%. Swabhimaan Laghubitta Bittiya Sanstha Ltd, Unilever Nepal Ltd, Oriental Hotels Ltd and Unnati Sahakarya Laghubitta Bittiya Sanstha ltd also lost over 3% each.

As per the ARKS technical analysis, the index formed a spinning top candlestick with long wicks on both side reflecting significant volatility and indecision. Hence, lack of clarity about possible direction of the equity market still persists. Given the market holds ground above 2,400 line, stocks will likely see sideways movement until heavy surge in volumes is witnessed.

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