KATHMANDU, Dec 14: The benchmark opened sharply higher and reached as high as 2,047-point mark before witnessing a minor correction in the morning trading on Monday. Nonetheless, the Nepal Stock Exchange (Nepse) index hovered in green throughout the afternoon and plateaued at mid-session. Further, a rally in the closing hours saw the index register a gain of 56.72 points to end at 2,067.17.
With a three-day advance, the bourse has recouped almost all of the losses that came in the index’s pullback in the first week of December. Hence, buyers have gained control with reignited enthusiasm supported by notable volumes in the market. The day’s turnover stood at Rs 7.2 billion. 
All sectors ended higher, barring Hydropower group, which saw a loss of 1.21%. Trading and Life Insurance sectors were the leaders with rally of 8.32% and 8.19%. Microfinance, Non-Life Insurance and ‘Others’ sub-indices also saw strength and registered gains of over 4% each. All other segments closed the day with notable gains. 
Shares of Nepal Life Insurance Company Ltd were traded the most with a significant turnover of Rs 744 million. Nepal Reinsurance Company Ltd and National Life Insurance Company Ltd registered turnovers of Rs 461 million and Rs 420 million. Nabil Bank Ltd, Shikhar Insurance Company Ltd and NIC Asia Bank Ltd were the other active stocks.
Prime Life Insurance Company Ltd led the list of gainers and rallied exactly 10%. Global IME Laghubitta Bittiya Sanstha Ltd also shot up by 9.99%. The micro-sector lender announced 27.47% stock dividend and 1.45% cash dividend on the day. Nepal Life Insurance Company Ltd, Narayani Development Bank Ltd, Swabhimaan Laghubitta Bittiya Sanstha and National Microfinance Bittiya Sanstha Ltd followed suit with gains of almost 10% apiece. 
Liberty Energy Company Ltd, on the other hand, slumped 5.79%. Unilever Nepal Ltd also came under pressure and tanked 4.95%. Meanwhile, Mountain Hydro Nepal Ltd tumbled 3.83%. Agriculture Development Bank Ltd also fell 3.08%. The government promoted bank announced its dividend for the FY 19/20 on the day including 15% bonus shares and 0.79% cash dividend. Ridi Hydropower Development Company Ltd, Himal Urja Bikas Company Ltd and Rasuwagadhi Hydropower Company Ltd registered declines of over 2% each. 
The index, as per the ARKS technical analysis, formed a strong bullish candlestick marking a third straight day of gain. Hence, Nepse has extended its rebound further and reached close to its previous high at around 2,070-point level. Some retracement on profit booking can be expected in the current resistance range. However, a breach of the aforementioned level with volume can point towards further upward movement in the equity index. 

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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