Nepse benchmark index falls 11.34 points

KATHMANDU, Oct 8: After reaching as high as 1,614 in the morning, the Nepal Stock Exchange (Nepse) index gave up its earlier gains to hover close to the opening level of 1,600-point’s mark at mid-day. The benchmark traded flat in the afternoon before selling pressure pulled the index 11.34 points lower. Nepse ended Thursday’s trading at 1,589.64 – down 11.34 points against Wednesday’s close.

Following a gain of over 14 points on Wednesday, profit booking, mainly among energy stocks, pulled the index towards red. Despite the index’s attempt to cross 1,600 points psychological level, lack of buying enthusiasm in the final hours saw the bourse close in red. However, market participation has remained upbeat with almost Rs 3 billion worth of securities exchanged on the day.

Losses came mainly from energy stocks following a sustained rally for the entire month of September and beginning week of October. Hydropower sub-index tumbled 3.08%. Hotels sector also suffered as the group’s sub-index fell 1.71%. Non –Life Insurance and Development Bank sectors dropped around 1%. Heavyweight banks and other sectors fell marginally. Finance segment bucked the trend with a rally of almost 4% as most of cheaper finance stocks hit upper circuit limit. Mutual Fund and Microfinance indices edged marginally higher.

Arun Kabeli Power Ltd was the most actively traded share of the day. More than Rs 124 million worth of the scrip changed hands. National Hydropower Company Ltd and Sanima Mai Hydropower Ltd followed suit with turnovers of Rs 104 million and Rs 90 million. Kumari Bank Ltd, Arun Valley Hydropower Development Company Ltd and Himal Dolakha Hydropower Company Ltd were among other heavily traded shares of Thursday.

On the gainers front, Multipurpose Finance Company Ltd saw the biggest rally of the day. Its share price remained locked in the positive circuit of 10%. Besides, Karnali Development Bank Ltd, Samriddhi Finance Company Ltd and Gurkhas Finance Ltd rose over 9% each. Green Development Bank Ltd, Guheshwori Merchant Bank & Finance Co. Ltd and Reliance Finance Ltd also shot up by over 8% each. Other finance scrips saw notable strength.

On the other hand, energy scrips dominated the list of decliners. Synergy Power Development Ltd and Panchthar Power Company Ltd corrected around 7% each. Liberty Energy Company Ltd, Rasuwagadhi Hydropower Company Ltd and Arun Kabeli Power Ltd fell around 6%. Api Power Company Ltd, Himal Power Partner Ltd and Ghalemdi Hydro Ltd’s shares also came under considerable pressure.

As per ARKS technical analysis, the market formed a bearish candlestick on the daily timeframe suggesting some retracement after early week gains. With the day’s decline, the index failed to breach 1,600 psychological mark, which suggests that some more correction is likely. However, a strong support lies at 1,550 points mark above which the uptrend will remain intact. Technical indicators also suggest some possibility of retracement after which a rebound can provide opportunities to go long in the equity market.

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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