Daily Market Commentary

Stocks recoup losses as 2,600 mark holds ground

Published On: September 29, 2021 06:46 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Sept 29: The Nepal Stock Exchange (Nepse) saw strength in the morning on Wednesday with the index climbing around 30 points. Following a dip, the benchmark fell around 35 points to hit an intraday low of 2,580. Nonetheless, stocks continued to register a steady advance in the latter trading hours with the index ending 50.58 points higher at 2,665.94.

After a sharp downward move in the prior three sessions, the index has finally found its footing at 2,600 level. A double rebound from 2,600 mark within the past 7 days, investors and traders are eyeing the psychological level as a pivotal point. Besides, indecision still prevails of late with volumes making new lows. Only Rs. 5 billion worth of equities changed hands on the day.

Finance and Hydropower sub-indices made a sharp rebound with both sectors rallying more than 4%. Development Bank sector also rose over 3%. All other sectors saw strength on the day and ended firmly higher. Heavyweight banks climbed 1.09%.

Api Power Company Ltd’s shares were traded the most as more than Rs. 226 million worth of the scrips changed hands. Himalayan Distillery Ltd, Nepal Bank Ltd and United Modi Hydropower Ltd, next, posted turnovers of Rs. 185 million, Rs. 165 million and Rs. 160 million. ICFC Finance Ltd, Ridi Hydropower Development Company Ltd and Mega Bank Ltd were among other heavily traded stocks.

Api Power Company Ltd and Green Development Bank Ltd were the major winners of the day with both scrips rallying 10% apiece. Manakamana Smart Laghubitta Bittiya Sanstha Ltd, United Idi Mardi RB Hydropower Ltd, Kalika Power Company Ltd, Himal Urja Bikas Bank Ltd and Chhyangdi Hydropower Ltd, Kalika Laghubitta Bittiya Sanstha Ltd also shot up by over 9% on the day.

On the other hand, Mega Bank Ltd and Unilever Nepal Ltd fell 3.92% and 3.09%, respectively. Gurkhas Finance Ltd, Mithila Laghubitta Bittiya Sanstha Ltd and Kumari Bank Ltd also fell marginally.

As per the ARKS technical analysis, the index formed a bullish candlestick on the daily timeframe suggesting slight shift in momentum. A rebound from 2,600 also indicates buyers control in the current zone. Relative Strength Index suggests bullish divergence which usually points towards possibility of a rebound.

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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