NEPSE Market Faces Correction After Wednesday's Rise, Investor Confidence Remains Strong

The NEPSE market experienced a significant rise on Wednesday, but it was unable to maintain that momentum on Thursday. Throughout the trading session, there was notable volatility, leading to increased market instability. Today, the NEPSE index dropped by 12.04 points, reaching 2661.64 points.

On Thursday, 315 companies traded a total of 307,99,091 shares worth NPR 11.65 billion, which is a 14.52% increase compared to Wednesday. On this day, 5 companies saw their shares traded at the positive circuit level, including Nepal Micro Insurance Company, Crest Micro Life Insurance, Chyangdi Hydropower, Om Megashree Pharmaceuticals, and IFC Finance.

Among the companies that traded, Sindhu Development Bank saw the biggest drop in its share price, which decreased by 4.15%. In terms of trading volume, Dadi Group Power Company topped the list, with shares worth NPR 784.5 million being traded.

Analyzing sector performance, the finance sector saw the highest increase, up by 4.30%. Additionally, the hydropower, life insurance, production and processing, and mutual fund sectors also showed an upward trend, while other sectors saw a decline.

Although the market faced some pressure, the increase in trading volume signals a rise in investor activity and confidence. Despite the market correction, some positive signals have started to appear. Investors have been closely monitoring the delay in the appointment of the central bank governor, as this decision could significantly affect both the stock market and the overall economy.

As of now, the governor’s appointment has not been made. Furthermore, low bank interest rates and higher liquidity in the system have played a supportive role in the stock market. Additionally, the preparation of the upcoming budget has sparked new hopes and potential for the stock market.

Technical Analysis:
Today, after a bullish candle, the NEPSE market experienced a slight correction. Post-correction, the market has stabilized within the middle band and pivot area range. The market is currently above the 200-day moving average, which is a positive signal. Trading volumes continue to increase daily, indicating rising investor activity and confidence. After a long period, momentum is starting to appear in the finance sector, and improvements in the performance of companies in this sector are expected.

Broker Analysis:
Among the top 10 brokers based on trading volumes, 4 brokers sold more compared to buying, while 6 brokers bought more than they sold. The leading broker, number 58, traded a total of NPR 118 million worth of shares today. It bought shares worth NPR 67.63 million and sold shares worth NPR 50.57 million. Its buy-sell ratio is 1.337. The second leading broker, number 42, bought shares worth NPR 38.78 million and sold shares worth NPR 59.53 million. Similarly, broker number 45 bought shares worth NPR 46.71 million and sold shares worth NPR 47.39 million.