NEPSE Weekly Market Update: Gains and Losses in the Nepali Stock Market
This week in the Nepali stock market saw some movement. The NEPSE index closed at 2,560.29, a gain of 14.56 points (0.57%). Last week, the index finished at 2,545.73, down 1.94% from the week before. This indicates a slight market recovery.
Throughout the week, the Nepalese stock exchange experienced a high of 2,580.09 and a low of 2,533.03, resulting in market volatility of 47.06 points. This is less volatile than the previous week’s 68.89 points. The largest intraday gain occurred on Tuesday, with a 15.71 point increase and a turnover of Rs 4.01 Arba. The total weekly turnover amounted to Rs 20.41 Arba.
Momentum Indicators: A Technical Analysis
Analyzing key momentum indicators provides further insight into the market’s direction. The Relative Strength Index (RSI) on the daily timeframe is 44.01, while the weekly RSI reading is 44.33.
The Moving Average Convergence Divergence (MACD) and signal lines are currently in the negative zone, with the MACD reading at -18.04. This suggests potential bearish sentiment.
The NEPSE index is trading below both the 20-day and 5-day Exponential Moving Averages. An index below the shorter moving average is often seen as an indicator of earlier bearish market trends.
In terms of support and resistance levels, the 2,440-2,480 level may act as the nearest support, while the 2,630 zone is likely to be a major resistance zone for the Nepalese stock market.
This week saw over 4.49 Crore unit shares traded across 2,80,793 transactions. The current market capitalization of NEPSE is Rs. 4,298,784.02 million, or Rs 42.98 Kharba.
NEPSE Index and Sub-Indices Performance
While the overall NEPSE index increased by 0.57%, sector performance varied. Only five sector indices closed in the red, indicating a mixed performance across different market sectors.
Stocks with the Highest Beta
For investors looking at risk assessment, the top three companies with the highest beta values are Unnati Sahakarya Laghubitta Bittiya Sanstha Limited (USLB), Butwal Power Company Limited (BPCL), and Excel Development Bank Limited (EDBL), with betas of 3.671, 3.126, and 2.984, respectively. A higher beta stock indicates higher volatility relative to the market.
Top Gainers and Losers
Sagar Distillery Limited (SAGAR) emerged as the top gainer, closing at Rs. 828 with an increment of Rs. 313.70 (61.00%). These top performing stocks attracted significant investor attention.
On the other hand, Bhugol Energy Development Company Limited (BEDC) experienced the largest price decrease, falling by 20.80% to an LTP of Rs. 567.10, making it the top loser of the week.
Top Stocks by Turnover, Volume, and Number of Transactions
Sahas Urja Limited (SAHAS) was the most actively traded company this week, with shares worth Rs. 1.16 Arba changing hands. This high trading volume suggests strong investor interest in the company.
Top Brokers: Buying and Selling Activity
Analyzing broker activity can provide insights into institutional investment trends. This week, Naasa Securities Co. Ltd. (Broker No. 58) was the top buying broker, purchasing stocks worth Rs. 1.38 Arba.
Naasa Securities Co. Limited (Broker No.- 58) was also the top selling broker, selling stocks worth Rs. 1.54 Arba. This indicates a potentially strategic repositioning within the broker’s portfolio. Investors can use this to understand current market trends.
