Daily Commentary: Nepse jumps 14 points to reach 1,600-point’s mark

Published On: October 7, 2020 10:44 PM NPT By: Republica  | @RepublicaNepal


KATHMANDU, Oct 7: The equity index experienced flat trading since the beginning of Wednesday’s session. Indecision was visible in the day as buyers and sellers approached market with much caution in the first half of the trading session. However, strength in the late afternoon helped Nepse surge above 1,600-point mark. A modest dip in the final trading minutes saw the Nepal Stock Exchange (Nepse) index end at 1,600.98 – up 14.68 points against the session earlier.

After consolidating around 1,580 points for three straight sessions, the index pointed toward the possibility of upward movement with the index climbing above the recent range. Further, a surge in volume also accompanied Nepse’s rise, reflecting notable enthusiasm from investors. Consequently, strength seen in most of the sectors helped the index notch 1,600 point’s mark. Total turnover remained upbeat with more than Rs 3.3 billion worth of shares being traded on the day. 

Most of the sectors ended the day in a positive note except Manufacturing & Processing and Microfinance sectors with a minor decrement.  On the other hand, Hydropower sectors continued to saw massive enthusiasm from investors. The sub-index rallied 5.54%. Development Bank, Hotels and Finance sub-indices followed suit with gains of 3.9%, 2.98%, 2.94 % respectively. Likewise, Banking, Trading, Non-Life Insurance, Others, Life Insurance and Mutual Fund sector also closed on green note.

Shares of Arun Kabeli Power Ltd, Arun Valley Hydropower Company Ltd and Sanima Mai Hydropower Company Ltd led the list of turnovers with registering 152 million, 135 million and 111 million respectively. Himal Dolakha Hydropower Company Limited, Hydroelectricity Investment and Development Company Ltd followed suit with turnovers of Rs 108 million and Rs 106 million. Shivam Cements Ltd, Upper Tamakoshi Hydropower Ltd, API Power Company Ltd and Butwal Power Company Limited were among other actively traded shares.

 

Mostly Hydropower stocks dominated the list of major gainers. Shares of National Hydro Power Company Limited, Barun Hydropower Co. Ltd. Sanjen Jalavidhyut Company Ltd and Karnali Development Bank Limited shot up by exactly 10 % on the day. Similarly, other energy stocks also saw considerable strength and registered gains of over 9 % each.

 

Among losing scrips, Laxmi Equity Fund unit price drop by 3.11% on the day. It was followed by shares of Mahila Sahayatra Microfinance Bittiya Sanstha Ltd, Gurans Laghubitta Bittiya Sanstha Limited and Sabaiko Laghubitta Bittiya Sanstha Ltd posting declines of over 2 % each.NIC Asia Debenture 2082/83, Laxmi Unnati Kosh Laxmi Laghubitta Bittiya Sanstha Ltd and Global IME Bank Ltd Debenture 2080/81 were other losing scrips on Wednesday’s trading.

 

As per ARKS technical analysis, the index formed a bullish candlestick on the daily timeframe closing above 1600 psychological level reflecting notable optimism. Likewise, the technical indicators also indicate positive momentum in the market with significant volume recorded on the day. Towards the upside, the February high acts as a resistance which lies at around 1,630 point’s mark at the current juncture.

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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