KATHMANDU, Jan 14: The stock market saw considerable buying pressure in the morning session as the Nepal Stock Exchange (Nepse) index shot up by nearly 30 points within first 15 minutes of trading.
The index slipped sharply thereafter, but managed to trade in green in the remaining sessions. The benchmark index crossed the 1,280-point mark for the second time in the session toward late afternoon, but retraced slightly to close the day with an advance of 15.14 points at 1,270.86 points.
The benchmark index Nepse built on Sunday's performance stretching its winning streak for a third consecutive day. Despite some profit-booking witnessed in some sectors, the index traded on a firmly positive footing in the session. With buyers still entering into long positions, market activity also shot up to its highest level in almost a year. Total turnover stood at Rs. 1.7 billion – 28% up compared to Sunday.
Most of the sectors moved in tandem with the broader market with Hydropower segment registering the highest gain. The group's sub-index jumped by almost 5%. Trading sub-index also saw considerable strength and rallied 3.66%. Finance, Banking and 'Others' sectors also posted gains of over 1% each. All other sectors, barring Microfinance and Manufacturing & Processing segments which corrected marginally, closed the day in green.
Shares of Nepal Telecom Ltd were traded the most on the day. The only listed telecom provider's shares registered total transactions of Rs 60 million. Meanwhile, Nepal Life Insurance Company Ltd was the other active stock as reflected by turnover of Rs 59 million. Shares of NIC Asia Bank Ltd, Prabhu Bank Ltd, NMB Bank Ltd and Prime Commercial Bank Ltd were also traded actively on the day with turnovers of Rs 55 million, Rs 44 million, Rs 42 million and Rs 41 million, respectively.
Ghodighoda Laghubitta Bittiya Sanstha Ltd and Sanima Mai Hydropower Ltd were the best performing scrips of Monday. At the close, both the stocks remained locked at the upper circuit of 10%. Other energy stocks followed suit as Chilime Hydropower Company Ltd and Radhi Bidyut Company Ltd posted gains of over 8% each.
Conversely, as microfinance segment witnessed correction after a persistent rally, the group's component stocks dominated the list of major decliners. Share prices of Civil Laghubitta Bittiya Sanstha Ltd and Ganapati Microfinance Bittiya Sanstha Ltd slumped almost 6% each. Meanwhile, Vijaya Laghubitta Bittiya Sanstha Ltd, Naya Nepal Laghubitta Bikas Bank Ltd and Samudayik Laghubitta Bittiya Sanstha Ltd also posted losses of over 5% each.
In corporate space, Saptakoshi Development Bank Ltd has announced 6% bonus shares to its shareholders for FY2018/19. The development bank's share price rose by over 4% on the day.
ARKS technical analysis indicates the market forming a bullish candlestick on the daily timeframe reflecting truncated morning gains.
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)