KATHMANDU, Dec 8: The Nepal Stock Exchange (Nepse) index opened Tuesday’s trading in green and climbed more than 40 points in the first few minutes of the session. Nonetheless, the index witnessed correction in the latter part of the session. The benchmark hovered above 2,000 point mark at mid-session but gave up gains further in the afternoon to close the day with a 9.04 point’s decline at 1,995.35.

Volatility has subsided fairly after a rout of more than 120 points on Sunday. While the index was able to recoup most of the losses on the subsequent trading day, indecisiveness was visible on Tuesday. While investors took heavy buying positions in the first trading hour, sellers negated the momentum bringing the index lower at the close. Turnover also fell as relatively low transaction of Rs 5.72 billion was witnessed.

Trading sub-group suffered the most and tanked 4.06%. Manufacturing/ Processing, Finance and Development Bank shares also struggled as the respective sub-indices fell 2.26%, 1.69% and 1.46%. Non-Life Insurance and Others sectors registered declines of over 1% each. All other segments fell marginally. In the meantime, Hydropower stocks bucked the trend with a gain of 4.81% on average. Mutual Fund sub-index also eked marginal gain.

Shares of Nepal Reinsurance Company Ltd continued to lead the list of top turnover stocks. Over Rs 467 million worth of the reinsurer’s shares changed hands. Nepal Life Insurance Company Ltd and Nepal Telecom Ltd posted transactions of Rs 313 million and Rs 260 million. Shivam Cements Ltd and Upper Tamakoshi Hydropower Ltd saw turnovers of Rs 160 million each. Chilime Hydropower Company Ltd, Global IME Bank Ltd Promoter Share and Nabil Bank Ltd were the other active stocks.

On the gainers front, Narayani Development Bank Ltd shot up by 10%. Hydropower bellwethers also led the gains as Upper Tamakoshi Hydropower Ltd, Rasuwagadhi Hydropower Company Ltd and Sanjen Jalvidhyut Company Ltd jumped over 9% each. Arun Valley Hydropower Development Company Ltd, Api Power Company Ltd and Himalaya Urja Bikas Company Ltd followed suit with gains of 7.14%, 6.56% and 3.77%. Sana Kisan Laghubitta Bittiya Sanstha Ltd also shot up by 3.66% after the wholesale micro sector lender announced 25% stock dividend and 1.315% cash dividend for the fiscal year 19/20.

Unilever Nepal Ltd, on the other hand, fell 6.02%. Bishal Bazar Company Ltd closely followed with a loss of 5.75%. Nepal Seva Laghubitta Bittiya Sanstha Ltd, Central Finance Co. Ltd, Gurkhas Finance Ltd and Support Laghubitta Bittiya Sanstha Ltd registered losses of over 4% each.

On the technical front, the market formed a small bearish candlestick following a dip in the equity market. Hence, some consolidation can be expected around 2,000-point mark amidst uncertainty. A major support of the equity market can be taken as 1,900-point line. On the other hand, a breach of resistance of 2,100 points can suggest possibility of extension of the uptrend.

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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