KATHMANDU, Oct 6:  The local stock market opened in green on Tuesday but witnessed a drop towards its opening level in the first hour of trading. The Nepal Stock Exchange (Nepse) index then hovered slightly in the positive territory to end choppy session at 1,586.29 points – up 4.17 points against the day earlier.

The index remained confined within a tight range in the past three sessions suggesting that the market is in consolidation phase of late. Further, all sectors showed subdued movements contributing to Tuesday’s lackluster trading. Volumes remained moderate with Rs 2.51 billion worth of shares being traded in the session.

Sectors ended mixed, while hydropower stocks stretched its rally with notable leap. The group’s sub-index shot up by 5.12% as a result of massive buying pressure seen in most of its composite stocks. Besides, Trading and Finance sub-index also rose 0.77%. Development Bank, ‘Others’ and Manufacturing & Processing segments eked out moderate gains. On the other hand, Non-Life Insurance segment suffered a loss of 0.72%. Microfinance and Life Insurance sectors dropped 0.36% and 0.27%. All other sectors ended mildly lower.

Hydropower stocks dominated the list of active scrips. National Hydropower Company Ltd and Sanima Mai Hydropower Ltd registered turnovers of Rs 113 million and Rs 108 million, respectively. Arun Kabeli Power Ltd, Api Power Company Ltd, Himal Dolakha Hydropower Development Company Ltd and Arun Valley Hydropower Development Company Ltd followed suit with turnovers of over Rs 80 million each. Nepal Bank Ltd, NMB Bank Ltd and Nepal Reinsurance Company Ltd were among other actively traded shares.

5 companies rose exactly 10% on the day. Those are National Hydropower Company Ltd, Nepal Finance Ltd, Ngadi Group Power Ltd, Mountain Hydro Nepal Ltd and Dibyashwori Hydropower Ltd. Similarly, most of the other energy stocks surged over 9% on the day.

Meanwhile, Arun Valley Hydropower Development Company Ltd suffered a 4% drop. Next, NRN Laghubitta Bittiya Sanstha Ltd, Kamana Sewa Bikas Bank Ltd and NIBL Samriddhi Fund 1 fell over 3% each. Karnali Development Bank Ltd, Shree Investment Finance Co. Ltd and Kalika Laghubitta Bittiya Sanstha also came under pressure with declines of over 2% apiece.

As per the ARKS technical analysis, the market registered a modest gain suggesting uncertainty prevailing in the current juncture. Subdued movements in the last couple of sessions also point towards investors approaching the market with some caution. Nonetheless, the upward trend still remains intact with immediate support at 1,550 points. For the market to make further stride towards the higher side, a breach of 1,600-point psychological level is crucial.

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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