KATHMANDU, June 28: Stocks climbed higher in the morning with the Nepal Stock Exchange (Nepse) index advancing more than 30 points higher. A sharp pullback dragged the index towards negative territory at mid-day. However, with buyers gaining control in the latter part of the session, Nepse saw a steady advance in the afternoon. Nepse finished Sunday’s trading slightly off its intraday high at 2,870.18 – down 27.17 points against the session earlier.
After two days of decline, Nepse saw a small rebound on Sunday. Nonetheless, with investors taking cautionary stance of late, turnover has remained on the lower side of the spectrum. Only Rs. 7.17 billion worth of equities changed hands.
Most of the sectors ended in green. Hydropower and Banking sectors were the major gainers with the respective sub-indices climbing 2.67% and 2.01%. Trading sub-index added 1.27%. Investment, Mutual Fund, Manufacturing & Processing, ‘Others’ and Microfinance segments also ended the day in positive territory. Meanwhile, Finance and Development Bank sectors extended their losing run with the respective sub-indices declining 1.76% and 1.36%. Hotels and Tourism sub-indices fell 1.19%. Non-Life Insurance and Life Insurance sectors also fell marginally.
National Hydropower Company Ltd was the most heavily traded stock of the day registering a turnover of over Rs. 407 million. Century Commercial Bank Ltd followed suit with a turnover of Rs. 378 million. Nepal Reinsurance Company Ltd saw a transaction of Rs. 341 million. Hydroelectricity Investment and Development Company Ltd, Nepal Insurance Co. Ltd, Civil Bank Ltd and NIC Asia Bank Ltd were among other actively traded stocks.
Century Commercial Bank Ltd and Upper Tamakoshi Hydropower Ltd were the day’s major gainers with both hitting the upper circuit level of 10%. United Idi Mardi RB Hydropower Ltd and Ridi Hydropower Company Ltd also saw strength with rallies of 7.25% and 6.26%. Civil Bank Ltd, National Hydropower Company Ltd, Butwal Power Company Ltd and Singati Hydro Energy Ltd were among other major advances.
Gurkhas Finance Ltd were the day’s biggest loser with the stock price tanking 4.37%. Everest Bank Ltd Convertible Preference share also came under pressure and closed almost 4% lower. Progressive Finance Ltd, Reliance Finance Ltd, Narayani Development Bank Ltd, Union Hydropower Ltd, Mithila Laghubitta Bittiya Sanstha Ltd and Ngadi Group Power Ltd dipped more than 3%.
In terms of ARKS technical analysis, the equity market formed a small bullish candlestick on the daily timeframe suggesting loss of selling momentum. However, with index still trading around 150 points lower than its peak above 3,000 mark, buyers are yet to gain significant control of the market. A consolidation around the current zone is likely with market activity in the lower side of the spectrum. A rebound with volume 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)