NEPSE Sees Double-Digit Gain but Scenario Not Appetizing in International Arena as Russia-Ukraine Crisis Escalates

The NEPSE index closed at 2,735.93 today after gaining 17.42 points from yesterday's closing. The index had gained 25.41 points yesterday.

The index opened at 2,719.89 today and did not trade lower. While it went as high as 2,750.09, it ultimately closed at 2,735.93.

228 scrips traded hands via 48,195 transactions. Furthermore, a total of 6,081,602 shares exchanged hands amounting to Rs. 3.212 Arba in the turnover amount. This is higher than yesterday's turnover of Rs. 2.997 Arba.

Nepal Doorsanchar Company Limited (NTC) had the highest turnover of Rs. 21.49 crores closing at a market price of Rs. 1,779 per share. The shares of Arun Valley Hydropower Development Co. Ltd. (AHPC) traded the most.

Mailung Khola Jal Vidhyut Company Limited (MKJC) and United IDI Mardi RB Hydropower Limited. (UMRH) gained the highest 10% and hit the positive circuit breaker.

Meanwhile, Civil Laghubitta Bittiya Sanstha Ltd. (CLBSL) has lost the highest 1.96%.

Two of thirteen sector indices closed red today. Manufacturing And Processing lost the highest 0.28% while "Others" gained the highest 1.98%.

International Scenario

The deepening Ukraine crisis has sent global stocks tumbling and crude oil surging. Last night, Russian President Vladimir Putin ordered his military to enter the Russian-controlled areas of southeast Ukraine. Although the eastern Ukrainian provinces of Luhansk and Donetsk are claimed as a whole by pro-Russia separatists, only parts of the provinces are under their control. Both provinces belong completely to Ukraine under international law.

In a late-night televised address to the nation, President Volodymyr Zelensky said Ukraine wanted peace but declared that "We are not afraid" and "will not give anything away to anyone". Kyiv now needs "clear and effective actions of support" from its international partners.

"It is very important to see now who our real friend and partner is, and who will continue to scare the Russian Federation with words only," he added.

The US swiftly condemned Putin's move, and President Joe Biden signed an executive order that prohibits new investment, trade, and financing by Americans in the breakaway regions.

UK Prime Minister Boris Johnson said Russia's actions amounted to "a flagrant violation of the sovereignty and integrity of Ukraine" that breaks international law. He said it was "a very ill omen and a very dark sign". Foreign Secretary Liz Truss said the UK would announce new sanctions on Russia on Tuesday.

The EU pledged to "react with unity, firmness and with determination in solidarity with Ukraine".

Australia's Prime Minister Scott Morrison rejected the suggestion that Russian troops would have a peacekeeping brief, telling reporters: "It's unacceptable, it's unprovoked, it's unwarranted ... some suggestion that they are peacekeeping is nonsense."

The move by Vladimir Putin deepens the ongoing crisis in Ukraine, which is surrounded by more than 150,000 Russian troops on its borders. Russia has denied planning to invade, but the US believes an attack is imminent.

Oil prices are trading at seven-year highs and Brent crude is fast approaching $100 a barrel. Oil prices have been rising over the last couple of months on concerns over supply as Russia is the world’s second-largest oil producer.

U.S. stock futures fell sharply for a second day. Futures on the S&P 500 fell 1.8%, following a 2.1% loss Monday. Futures for the technology-heavy Nasdaq-100 declined 2.6%, adding to Monday’s almost 3% fall.

European markets dropped in early trading. The FTSE 100 (UKX) dipped 0.4% in London, while France's CAC 40 (CAC40) shed 0.8%. Germany's DAX (DAX) tumbled 1.4%. Russian stocks dropped 6.9%, after crashing more than 10% Monday, and the ruble weakened against the dollar for the fourth consecutive trading session.

Japan's Nikkei 225 (N225) fell 1.7%, while China's Shanghai Composite (SHCOMP) dropped 1%. Hong Kong's Hang Seng Index (HSI) fell 2.7%, its biggest daily loss in five months.