KATHMANDU, Sept 25: The benchmark Nepal Stock Exchange (Nepse) index opened in a green note on Thursday, the last trading day of the week. After trading around 10 points higher momentarily in the morning, the Nepse index witnessed a sharp pullback to trade around the preceding day’s closing. Thereafter, the equity market continues to hang around the previous day’s closing in most of the trading session. At the last trading hour, the market moved toward positive territory to close the day at 1561.27 points - up by 5.74 points.
While the equity market ends the trading below its opening, the overall market sentiment still remains positive. Compared to the day earlier, the trading volume rose by 29.27%. Total turnover remained upbeat with more than Rs 2.23 billion worth of shares being traded on the day.
Sub-indices closed the day on either side of the spectrum. Trading sectors rose 6.95% followed by the Hydropower index which added 4.49%. Hotels and Finance sub-indices advanced 1.29% and 1.01%, respectively. The sub-index of Banking and Others indices also saw meager gains.
On the other hand, Development Bank, Non-Life Insurance, Manufacturing & Processing, Microfinance, Life Insurance and Mutual Fund sub-indices witnessed minor losses.
Arun Kabeli Power Ltd led the turnover list on Thursday. Over Rs 147 million worth of its shares were exchanged. Upper Tamakoshi Hydropower Company Ltd and Nepal Reinsurance Company Ltd followed suit with turnovers of Rs 95 million and 93 million, respectively. Arun Valley Hydropower Development Company Ltd, Nepal Bank Ltd, API Power Company Ltd, National Hydro Power Company Ltd were the other top turnover scrips in the session.
Energy stocks continued to lead the top gaining scrips list. 15 energy scrips closed above the 9% and only United Finance Ltd managed to surge above 9% on the day. Some gaining energy scrips include API Power Company Ltd, Mountain Hydro Nepal Ltd, and Himal Dolakha Hydropower Company Ltd, Synergy power Development Ltd, Dibyashwori Hydropower Ltd and Barun Hydropower Company Ltd.
Conversely, Citizen Mutual Fund-1, Unilever Nepal Ltd and Global IME Bank Ltd Debenture 2080/81 shares came under pressure, shedding over 2% each. Kalika Microcredit Development Bank Ltd, Reliance Life Insurance Limited, Reliance Finance Ltd and Sparsha Laghubitta Bittiya Sanstha Ltd’s shares also struggled and fell over 1% each.
As per ARKS technical analysis, the index closed the day on a slightly higher note which articulates bulls have gained some control at the current context. Currently, the market is trading around 1,550 point’s level with recording significant volumes. As long as the equity market manages to trade above its psychological support level of 1,550 points, the index will be in the upper momentum. While an immediate resistance lies at February’s high at around 1,630 point’s mark.
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)