Daily market commentary

Stocks rally backed by improved volumes

Published On: March 21, 2021 06:45 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, March 21: Local equities stretched its prior week gaining spree as Nepse kicked off week with a substantial advance. The index climbed as high as 2,511 points in the morning but saw a pullback at mid-day. Nonetheless, the market remained firmly in control of bulls in latter trading hours. The index rose around 60 points in the afternoon and plateaued thereafter. A closing minutes’ rise saw the benchmark end with a gain of 63.38 points at 2,538.47.

All the sectors ended on positive side of spectrum on Sunday’s trading session. Microfinance sub-index led the gains with a 5.70% surge. Hotels and Tourism, Non-Life Insurance, Life Insurance, Manufacturing & Processing and Others sub-indices jumped 5.36%, 4.59%, 4.44%, 3.13% and 2.98% respectively. Likewise, Banking, Development Bank, Mutual Fund and Investment sub-indices rallied above 1% each. Trading, Hydropower and Finance stocks also closed on a positive note.

Among actives, Nepal Bangladesh Bank Ltd and Nepal Life Insurance Company Ltd’s shares were heavily traded with turnovers of Rs. 399 million and 312 million, respectively.Nepal Infrastructure Bank Ltd, Upper Tamakoshi Hydropower Ltd, Nabil Bank Ltd and Nepal Reinsurance Company Ltd followed suit with transactions of Rs. 211 million, Rs. 156 million, Rs. 139 million and Rs. 131 million correspondingly.Neco Insurance Company Ltd, Deprosc Laghubitta Bittiya Sanstha Ltd, Himalayan Distillery Ltd and Arun Valley Hydropower Development Company Ltd were among other actively traded shares.

Microfinance sectorsdominated the list of gaining stocks. SwarojgarLaghubitta Bittiya Sanstha Ltd, Mithila Laghubitta Bittiya Sanstha Ltd and Suryodaya Laghubitta Bittiya Sanstha Ltd were the major winners with advances of 10% each. Samudayik Laghubitta Bittiya Sanstha Ltd, Summit Laghubitta Bittiya Sanstha Ltd, Chandragiri Hills Ltd,Kisan Laghubitta Bittiya Sanstha Ltd, Swabhimaan Laghubitta Bittiya Sanstha Ltd, United IDI Mardi RB Hydropower Ltd and Sabaiko Laghubitta Bittiya Sanstha Ltd also remained locked in the upper circuit limit with a gain above 9% each.

On the other hand, Green Life Hydropower Ltd and Khani Khola Hydropower Company Ltd’s price suffered the most and declinedmore than 6% each. It was followed by shares of Joshi Hydropower Company Ltd which lost 5.15%.  Similarly, Ghalemdi, Hydro Ltd and Dibyashwori Hydropower Ltd’s shares tanked above 4% apiece. NIBL Pragati fund, Himalaya Urja Bikas Company Ltd, Union Hydropower Ltd and Rairang Hydropower Development Company Ltd also closed firmly in red.

On the technical front, the market stretched rebound with a green candlestick formation for a third straight day. This signals bulls gaining momentum in the present context and likelihood of a stretched recovery. However, the market might witness some retracement. Technical indicators also suggest that sentiment favors buyers heavily. An immediate support can be taken as 2,500 mark.

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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