KATHMANDU, Jan 9: The Nepal Stock Exchange (Nepse) index climbed above 2,700 mark in the morning and traded in green throughout Sunday’s session. The index jumped more than 70 points at mid-day before a small correction dragged the index slightly lower. At the close, Nepse finished with a gain of 73.05 points at 2,765.51.
The benchmark extended its rally as investors showed massive enthusiasm on the news of rising Covid cases. The expectation of a repeat surge of the market amidst restrictions was mainly the driving factor for the day’s gains. Turnover, subsequently, climbed above Rs. 7 billion mark.
Trading, Development Bank and Finance sectors were the day’s leaders with the respective sub-indices rallying more than 5%. Hydropower and Investment sectors also rose more than 4%. All other sectors ended firmly higher.
Nepse surpasses 1,700-point mark
Api Power Company Ltd, Prabhu Bank Ltd and Upper Tamakoshi Hydropower Ltd were the leaders with turnovers of Rs. 290 million, Rs. 208 million and Rs. 201 million. Shivam Cements Ltd, Arun Valley Hydropower Company Ltd and National Hydropower Company Ltd were among other actives.
Nepal Hydro Developers Ltd, Himal Urja Bikas Company Ltd and Union Hydropower Ltd remained locked in the upper circuit limit of 10%. Madhya Bhotekoshi Jalvidyut Company Ltd, Nyadi Hydropower Company Ltd and Progressive Finance Ltd rose over 9%.
On the other hand, Mithila Laghubitta Bittiya Sanstha Ltd, Bottlers Nepal Terai Ltd and Chandragiri Hills Ltd rose around 1% each. First Microfinance Laghubitta Bittiya Sanstha Ltd, Nabil Bank Ltd and Kalika Laghubitta Bittiya Sanstha Ltd also ended marginally in red.
As per the ARKS technical analysis, the index formed a strong bullish candlestick signaling strength. A rally of over 70 points pushed the index near 2,800 mark which can act as a major resistance. A correction is also due with momentum indicator close to overbought reading. A pullback will be an opportunity for traders to go long.
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)
