Nepse benchmark index up by 1.74 points

KATHMANDU, Oct 12: Weakness from the previous trading sessions carried over to Monday’s trading. The Nepal Stock Exchange (Nepse) index, which opened at around 1,580 points, witnessed a steady decline in the first trading hours and dropped to 1,567 points in the morning. However, stocks gathered momentum thereafter, with the index erasing all its earlier losses to eventually end the day unchanged. The benchmark index ended Monday’s session at 1,578.01 points with a slight gain of 1.74 points.

Market participation also remained subdued in the session with Rs 1.94 billion worth of securities were exchanged on Monday.

Sectors saw mixed movements. Development Bank sub-index led the gains with 3.88 % advance. Banking, Trading, Hotels and Microfinance sectors also ended on a positive note with meager gains. Conversely, Finance sub-group suffered with a 1.35 % decline. Hydropower, Non-Life Insurance, Manufacturing & Processing, Others, Life Insurance and Mutual Fund sectors also underperformed closing the day slightly lower.

Muktinath Bikas Bank Ltd was highly traded in the session. More than Rs 165 million worth of the development bank’s shares changed hands. Arun Valley Hydropower Development Company Ltd and Kamana Sewa Bikas Bank Ltd’s shares were also actively traded with turnover of over Rs 77 million and Rs 68 million respectively. Nepal Reinsurance Company Limited, NIC Asia Bank Ltd, National Hydro Power Company Ltd and API Power Company Ltd were among other top turnover stocks.

Muktinath Bikas Bank Ltd led the list of advances with a 9.85 % rally. Similarly, Corporate Development Bank Ltd jumped 5%. Further, ICFC Finance Ltd, Kamana Sewa Bikas Bank Ltd, Tinau Mission Development Bank Ltd, Manjushree Finance Ltd. Miteri Development Bank Ltd and Karnali Development Bank Ltd rose over 4% each. Likewise, Jyoti Bikas Bank Ltd, Garima Bikas Bank Ltd and Mountain Hydro Nepal Ltd also shot up by 3% apiece.

On the other hand, Sabaiko Laghubitta Bittiya Sanstha Ltd slid 6.05 %. It was closely followed by Ridi Hydropower Development Company Ltd which shares price drop by 5.83%. Similarly, shares of Central Finance Co. Ltd, Guheshowori Merchant Bank & Finance Co. Ltd, Multipurpose Finance Company Ltd, Best Finance Company Ltd, Sanjen Jalabidhyut Company Ltd and Shree Investment Finance Co. Ltd. also closed over 4 % lower

As per ARKS technical analysis, the index formed the doji candlestick on the day which suggests indecisiveness in the market.  However, the index has still managed to hold the ground above 1,550 points which acts as strong psychological support in the recent sessions reflecting short term up trend. Whereas, a drop below this support level might suggest the possibility of further decline.

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

This column is produced by ARKS Capital Advisors Ltd.

 
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