KATHMANDU, Dec 2: Nepal Stock Exchange (Nepse) index opened Wednesday’s trading almost 20 points higher and continued to see notable strength throughout the session.
The benchmark reached 2,050 points at mid-day and plateaued for an hour. Another advance in the latter hours pushed the index more than 70 points higher to end at 2,071.03 points.
With the index witnessing another notable rally, the market has made fresh high for the seventh consecutive time. Consequently, the stock market has continued to attract notable investments despite the pandemic slowing the economic activities.
With interest rates still on the lower side and subdued business activities, investments in the equity market have continued to surge. Another active session was witnessed with a turnover of Rs 7.46 billion.
In terms of sectoral performance, ‘Others’ sub-index led the gains with 8.4% rally. Microfinance sector followed with a gain of 7.95%. Manufacturing & Processing segment also saw considerable strength and climbed 6.67%. Hydropower, Life Insurance and Hotels sector were the other outperforming groups. Only trading group saw a modest loss.
Nepal Telecom Ltd and Nepal Life Insurance Company Ltd were the most actively traded shares of the day with turnovers of Rs 407 million and Rs 310 million. Nabil Bank Ltd and Himalayan Distillery registered turnovers of Rs 232 million and Rs 225 million. National Life Insurance Company Ltd, Neco Insurance Ltd and Nepal Bank Ltd were the other actively traded shares.
Nerude Laghubitta Bittiya Sanstha Ltd, Himalayan Distillery Ltd, Vijay Laghubitta Bittiya Sanstha Ltd, Janautthan Samudayic Laghubitta Bittiya Sanstha Ltd, NMB Microfinance Bittiya Sanstha Ltd, Sanjen Jalvidhuyt Company Ltd, Mithila Laghubitta Bittiya Sanstha Ltd, Chhimek Laghubitta Bittiya Sanstha Ltd and Laxmi Laghubitta Bittiya Sanstha Ltd shot up by exactly 10%. Mainly microfinance stocks followed suit with notable gains.
Unilever Nepal Ltd led the list of laggards and fell more than 5%. Nepal Bangladesh Bank Ltd, Arun Valley Hydropower Development Company Ltd, Joshi Hydropower Development Company Ltd and Salt Trading Corporation Ltd fell 2% apiece. Himalayan General Insurance Ltd, United Modi Hydropower Ltd and Ridi Hydropower Development Company Ltd closed over 1% lower.
As per the ARKS technical analysis, the market formed a strong bullish candlestick indicating substantial strength in the market. With index continuously making fresh highs accompanied by notable volumes, the overall uptrend is likely to continue with more legs. Nonetheless, some minor corrections can also be expected in the upcoming sessions.
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)