KATHMANDU Jan 2: Stocks remained little changed on the first trading day of 2020. After trading essentially flat in the first half of the trading session, stocks gained some ground and pushed the Nepal Stock Exchange (Nepse) index slightly higher. Nepse eventually closed the day 3.47 points higher at 1,169.50 points.
The bourse also witnessed a slightly bland trading session on the day as both buyers and sellers remained relatively passive. The market has also continued its range-bound trading with volumes remaining at the lower end of the spectrum. Only Rs 373 million worth of securities were traded in the session. Lower volume also point toward a possibility of further sideways movement in the local bourse.
Most of the sectors ended the day in green with a late surge seen in share prices of all listed hotels. Hotels sub-index jumped by 9.22%. Microfinance sub-index rose by 1.57%, while Mutual Fund sub-index went up by 1%. Trading, Development Bank, Banking, Manufacturing & Processing and Hydropower sectors also inched higher. On the other hand, Life Insurance sub-index corrected by 1.37%, while Non-life Insurance sub-index was down by 0.61%. 'Others' and Finance sectors also ended the day marginally lower.
In terms of market participation, Oriental Hotels Ltd saw the highest transaction of the day with a turnover of Rs 29 million. Subsequently, Nepal Life Insurance Company Ltd registered a turnover of Rs 26 million. Other hotel scrips like Taragaon Regency Hotels Ltd and Soaltee Hotel Ltd posted turnovers of Rs 19 million each. Himalayan Distillery Ltd, Shivam Cements Ltd and NIC Asia Bank Ltd were among other active scrips of the day.
Taragaon Regency Hotels Ltd, Oriental Hotels Ltd and Soaltee Hotel Ltd all saw considerable strength on the day as their share prices hit the upper circuit of 10%. Nadep Laghubitta Bittiya Sanstha Ltd and Bishal Bazar Company Ltd closely followed with gains of 8.61% and 7.46%, respectively. Other major advances include Himalayan Power Partner Ltd, Synergy Power Development Ltd and Vijay Laghubitta Bittiya Sanstha Ltd.
In contrast, Goodwill Finance Ltd led the losses tumbling 5.79% in the session. Union Hydropower Ltd and National Life Insurance Co Ltd saw their respective share prices go down by over 3% each. While share price of Everest Insurance Company Ltd fell 2.93%, share prices of Chhyangdi Hydropower Ltd and Nepal Finance Ltd ended the day dropped 2.81% and 2.78% lower, respectively.
As per the ARKS technical analysis, the market formed a small bullish candlestick but failed to close above 1,170 points. Hence, the secondary market will likely stretch its sideways movement. Momentum indicators also suggest neutral sentiment prevailing in the market. A breach from the current range of 1,160-1,170 points toward either direction will likely set a tone for the upcoming short-term movement in the secondary market. Further, a breakout from 1,180 points resistance will substantiate the rally.
This column is produced by
ARKS Capital Advisors Ltd
(Views expressed are those of
the producer and do not necessarily reflect those of this publication)