KATHMANDU, Oct 6: The equity market opened Monday’s trading on a positive note with the Nepal Stock Exchange (Nepse) index climbing 10 points in the morning. Following a sharp pullback, the benchmark traded briefly in red at mid-day. The bourse gathered some strength in the afternoon and traded in green for most of the remaining session. However, a modest dip towards the close saw the index register a loss of 3.63 points to end at 1,582.13 points.

The equity index saw modest correction on profit booking after two straight days of gain. With the decline, market participation also remained subdued in the session. Total turnover of the day stood at Rs 2.58 billion – down from Rs 3.18 billion in the session earlier.

Sectors remained mixed on the day. Gains were led by Hydropower sector with the group’s sub-index ending 2.14% higher. Development Bank sector also climbed 1.24%. Mutual Fund, Hotels and ‘Others’ sectors also ended toward higher side. Manufacturing & Processing segment on the other hand corrected and dropped 1.67%. Non-Life Insurance sector closed 1.43% lower. Life Insurance, Trading, Finance, Microfinance and Banking sectors suffered modest losses on Monday.

Nepal Reinsurance Company Ltd was the most actively traded scrip of the day. Over Rs 149 million worth of its shares were traded. Hydropower stocks followed as Arun Kabeli Power Ltd and Arun Valley Hydropower Development Company Ltd saw turnovers of Rs 117 million and Rs 107 million. Kumari Bank Ltd, Nepal Bank Ltd and Himalayan Distillery Ltd posted turnovers of more than Rs 90 million each. Api Power Company Ltd, Shivam Cements Ltd and Kamana Sewa Bikas Bank Ltd were among other active stocks.

On the gainers front, Rairang Hydropower Development Company Ltd and Kamana Sewa Bikas Bank Ltd rallied exactly 10% each. Nepal Finance Ltd also saw considerable strength and rose 9.24%. Ridi Hydropower Development Company Ltd and Himal Dolakha Hydropower Company Ltd witnessed notable buying interest as both scrips jumped over 7%. Lumbini Bikas Bank Ltd, Union Hydropower Ltd and Api Power Company Ltd shot up by 6% each.

On the other hand, Progressive Finance Ltd suffered the most as its share price tumbled 7.19%. Unnati Sahakarya Laghubitta Bittiya Sanstha Ltd, Everest Bank Ltd Con. Pref. Share and Chhyangdi Hydropower Ltd’s shares also came under pressure with losses of around 4% each. Taragaon Regency Hotel Ltd, Shivam Cements Ltd and Support Microfinance Bittiya Sanstha Ltd slumped over 3%.

On the technical front, the index formed a small bearish candlestick on the daily timeframe as the index suffered marginally on profit booking. The overall uptrend has remained intact with the index still trending firmly above 1,550 point’s mark. In the meantime, technical indicators suggest neutral sentiment suggesting some likely consolidation or correction in the coming sessions. A breach of 1,600 points can see the index make further upward movement.

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)

www.arkscapitaladvisors.com

 
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