Daily Market Commentary

Stocks open on a positive note after festive holidays

Published On: October 17, 2021 07:15 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Oct 17: The equity index rose sharply on Sunday morning, adding more than 25 points within the first half an hour of the session. However, stocks gave up earlier gains to trade more than 10 points lower at mid-day. A recovery in the latter hours, finally, pushed Nepse over 17 points higher to close at 2,656.96.

Volumes remained subdued ahead of the holidays as the bourse continued to see modest movements, with the lackluster trading extending post festival. With investors yet to participate actively in the equity market, total turnover dipped to less than Rs. 2 billion for the first time in almost a year. Around Rs. 1.5 billion worth of equities changed hands. 

Barring Mutual Fund sector, all other segments ended in green. Hotels and Tourism stocks were the major winners rising more than 3% on average. ‘Others’, Trading, Development bank and Non-Life Insurance sectors also rose more than 1%. All other sectors ended in positive territory. 

Nabil Bank Ltd was the most actively traded stock of the day. Over Rs. 83 million worth of the commercial bank scrip changed hands. Himalayan Distillery Ltd, ICFC Finance Ltd, Sanima Bank Ltd and Kamana Sewa Bikas Bank Ltd followed suit with turnovers of Rs. 75 million, Rs. 63 million, Rs. 53 million and Rs. 41 million. 

Chandragiri Hills Ltd led the list of gainers as the hotel stock climbed 6.97%. Himalaya Urja Bikas Company Ltd and Ghalemdi Hydro Ltd advanced around 5% each. Kamana Sewa Bikas Bank Ltd, Prudential Insurance Company Ltd, Life Insurance Corporation Nepal Ltd and Kalika Power Company Ltd jumped around 4%. 

In contrast, Bottlers Nepal Terai Ltd and Kalika Laghubitta Bittiya Sanstha Ltd fell close to 4%. Mailung Khola Jalbidhyut Company Ltd, ICFC Finance Ltd and Corporate Development Bank Ltd registered losses of 3.48%, 2.59% and 2.47%. 

On Sunday, ICFC Finance Ltd announced its dividend for its last fiscal year. As per its notice to Nepse, the finance will be distributing 10% bonus shares and 4% cash dividend. However, the board’s dividend proposal is subject to approval from its Annual General Meeting. 

The index formed a small spinning top candlestick on the daily timeframe suggesting a short term consolidation and indecision in the current scenario. A bullish MACD cross and RSI Divergence indicates buyers control after a dip of over 600 points in the recent retracement. 2,600 and 2,500 lines can be taken as an area of major support with a breakout above 2,700 pointing towards resumption of a short term upward move. 

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