KATHMANDU, Oct 31: Stocks began on a strong note on Sunday’s session as the equity market rose around 20 points in the morning. After trading briefly in negative territory, the index saw a steady advance in the latter trading hours. At the close, the index rose by 55.50 points to end Sunday’s trading at 2,837.61.
After a recovery of more than 200 points in the week earlier, the bourse extended its upward move further with another gain of over 50 points. With investors expecting end of correction after two months, buying pressure dominated Sunday’s session. Turnover also rose to Rs. 7.82 billion.
All sectors ended in green, barring Banking sector, which ended slightly lower. Development Bank, Trading, Hydropower and Hotels & Tourism sectors were the major leaders with the respective sub-indices surging 6.54%, 5.96%, 5.5% and 5.44%. Manufacturing & Processing and Non-Life Insurance sectors added around 4% apiece. All other segments closed in positive territory.
Ankhu Khola Jalvidhyut Company Ltd and Nabil Bank Ltd were the most actively traded stocks with turnovers of Rs. 315 million and Rs. 280 million. Everest Bank Ltd and Siddhartha Bank Ltd followed suit with turnovers of Rs. 277 million and Rs. 243 million. Himalayan Distillery Ltd, Api Power Company Ltd, NIC Asia Bank Ltd, Mahalaxmi Bikas Bank Ltd and Arun Valley Hydropower Development Company Ltd were among other active stocks.
Panchthar Power Company Ltd, Chandragiri Hills Ltd and Samudayik Laghubitta Bittiya Sanstha Ltd hit the upper circuit limit of 10%. Himalaya Urja Bikas Company Ltd, United Insurance Company Ltd, Lumbini Bikas Bank Ltd and Sahas Urja Company Ltd also rose 10% each. Mainly other hydropower and development bank stocks followed suit.
Everest Bank Ltd and Best Finance Company Ltd were the major decliners with losses of 6.50% and 2.22%. Jeevan Bikas Laghubitta Bittiya Sanstha Ltd, Nabil Bank Ltd and Agriculture Development Bank Ltd were among other losing scrips of the day.
As per the ARKS technical analysis, the index formed a strong bullish candlestick, climbing above the key 2,800 mark. Both RSI and MACD show possibility of further upward momentum. Given the market holds ground above 2,800 mark further recovery is likely in the 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)