KATHMANDU: Stocks continued its positive momentum in the last trading day of the week. The benchmark Nepal Stock Exchange (Nepse) index started Thursday’s session on an upbeat note and succeeded to hold its ground throughout the trading hours. At the close, Nepse index was 29.32 points higher at 1,434.27 points.
With Thursday’s gain, the secondary market ended in the positive zone for fifth straight session. As investors continue to accumulate shares of all sectors, market activity saw a major improvement, reaching to its record level. Over Rs 2.78 billion worth of shares were traded in the market on the day. Hence, the upbeat sentiment backed by massive volumes indicates that the index is yet to lose its steam.
Most of the traded sectors, except Trading and Mutual Fund sectors which were down by 1.1% and 0.39%, followed the border market. Microfinance sector continued to surge as the group’s sub-index shot up by 6.35% on the day. Similarly, Non-life Insurance and Life Insurance sub-indices added 5.55% and 4.46%, respectively. Manufacturing & Processing, Hotels, Hydropower and ‘Others’ sectors rose by 3.47%, 2.58%, 1.34% and 1.27%, respectively. Banking, Development Bank and Finance sub-indices also closed the day with marginal increments.
Shivam Cements Ltd and Himalayan Distillery Ltd led the list of active stocks for a second straight day with total transactions worth Rs 17 million and Rs 12 million, respectively. Nepal Life Insurance Company Ltd, Grameen Bikas Laghubitta Bittiya Sanstha Ltd and Shikhar Insurance Company Ltd logged total turnovers of over Rs 12 million, Rs 11 million and Rs 10 million, respectively. Further, Neco Insurance Company Ltd and Citizen Investment Trust posted turnovers of over Rs 8 million each, while First Microfinance Development Bank Ltd and Mero Microfinance Bittiya Sanstha Ltd shares each saw over Rs 7 million worth of shares traded.
Among advances, 12 companies traded close to the upper circuit on Thursday. Share prices of Bottlers Nepal Terai Ltd, First Microfinance Development Bank Ltd and NMB Microfinance Bittiya Sanstha Ltd went up by nearly 10%. Other major advances include Kalika Microcredit Development Bank Ltd, Mero Microfinance Bittiya Sanstha Ltd, Swabhimaan Laghubitta Bittiya Sanstha Ltd, RSDC Laghubitta Bittiya Sanstha Ltd and Taragaon Regency Hotel Ltd.
On the other hand, shares of Radhi Bidyut Company Ltd and Samriddhi Finance Company Ltd struggled and saw losses of 4.3% and 3.7%, respectively. Nabil Equity Fund units and Support Microfinance Bittiya Sanstha Ltd’s share price fell more than 2%. Salt Trading Corporation, Khanikhola Hydropower Company Ltd, Ankhu Khola Jalavidhyut Company Ltd and Nepal Credit & Commerce Bank Ltd Promoter Share were among other major decliners of the day.
As per the ARKS technical analysis, the market formed a strong bullish candlestick helping the index move higher. Technical indicators also suggest the market gathering notable momentum with more bullish movement on cards. On a more positive note, the index breached its resistance at 1,400 points with significant volume. Hence, if the market holds its footing above this level more north-bound movement can be expected. Meanwhile, a drop below 1400 points can see the index make some minor retracements.
This column is produced by ARKS Capital Advisors Ltd
(Views expressed are those of the producer and do not necessarily reflect those of this publication)