Daily market commentary

Stocks see new high as market registers another active session

Published On: January 25, 2021 06:40 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Jan 25: The equity index opened Monday’s session in green before retracing close to the opening level in the morning. The Nepse index saw a steady decline before mid-session with the benchmark falling as much as 15 points. However, a recovery in the latter trading hours saw the index close with a gain of 16.04 points at 2,440.88.

The equity market stretched its upward movement as the stock market has continued to witness massive interest from existing as well as new investors. Consequently, high market participation was seen in the sessions of late. Almost Rs. 9 billion worth of securities were traded in the day.

Sectors turned in mixed performance. Trading stocks were the leaders with the sub-index rallying 3.14%. ‘Others’ and Banking sub-indices also saw strength and shot up by 1.63% and 1.39%. Non-Life Insurance and Mutual Fund sub-indices also edged higher. Microfinance and Hotels sectors, on the other hand, suffered the most. The respective sub-indices fell 1.21% and 1.18%. Development Bank, Finance, Life Insurance, Manufacturing & Processing and Hydropower sectors inched marginally lower.

Shares of Nepal Life Insurance Company Ltd continued to lead the list of active stocks. Over Rs. 603 million worth of the life insurer’s shares changed hands. Nabil Bank Ltd, Nepal Credit and Commerce Bank Ltd and NIC Asia Bank Ltd followed suit with turnovers of Rs. 331 million, Rs. 313 million and Rs. 297 million. Nepal Bank Ltd, Nepal Reinsurance Company Ltd, Kumari Bank Ltd and Shikhar Insurance Company Ltd’s shares were also actively traded.

Citizen Investment Trust shot up by 10% for a second straight day. Gurans Laghubitta Bittiya Sanstha Ltd, Prabhu Life Insurance Ltd, Mountain Energy Nepal Ltd, National Hydropower Company Ltd and Himal Power Partner Ltd also rallied more than 9% each. Gurkhas Finance Ltd, Rastriya Beema Company Ltd, NRN Infrastructure & Development Ltd and Nepal Bank Ltd were among other major gainers.

Finance stocks suffered the most. Shree Investment Finance Co. Ltd tanked 7%. Sindhu Bikash Bank Ltd, Progressive Finance Ltd and Grameen Bikas Laghubitta Bittiya Sanstha Ltd suffered losses of over 5% each. Nepal Finance Ltd, Samudayik Laghubitta Bittiya Sanstha Ltd, Support Laghubitta Bittiya Sanstha Ltd and Sabaiko Laghubitta Bittiya Sanstha Ltd declined over 4% each.

The Nepse index, as per the ARKS technical analysis, formed a small spinning top candlestick. With both buyers and sellers remaining active the equity index saw pressure from both sides. Hence, some indecision was witnessed in the session. Besides, with the index making new tops and bottoms, the short term as well as medium term uptrend has remained intact. Given the market trades above the 2,400 mark for a few more sessions, the aforementioned level can act as a support for the equity market.

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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