KATHMANDU, Jan 10: The Nepal Stock Exchange opened higher but saw a brief correction in the morning. The benchmark index fell around 10 points in the morning but staged a recovery in the afternoon and traded mostly in positive territory. The bourse fell below the opening level second time in late afternoon before another rebound helped it close in green. At the close, Nepse posted a gain of 19.43 points to settle at 2,784.95.
The index continued to rally on the back of upbeat sentiment and rose to 2,800 mark, making a sharp recovery of around 500 points. Another active session was witnessed on Monday as the market saw a consecutive daily turnover of over Rs. 7 billion.
Most of the sectors were able to close in green, barring Hotels & Tourism, Banking and Manufacturing & Processing segments which fell slightly. ‘Others’ index jumped more than 5% on the back of gains coming from Nepal Reinsurance Company Ltd and Nepal Telecom Ltd. Finance sector rose 3.31%. All other sub-groups ended in green.
Nepse gains 18 points in choppy trading session
Gurkhas Finance Ltd were traded the most with a turnover of over Rs. 227 million. Nepal Telecom Ltd and Hydroelectricity Investment & Development Company Ltd saw turnovers of over Rs. 200 million. Api Power Company Ltd, national Hydropower Company Ltd and Nepal Reinsurance Company Ltd were among other heavily traded scrips.
Madhya Bhotekoshi Jalavidhyut Company Ltd, Union Hydropower Ltd and Corporate Development Bank Ltd remained locked in the positive circuit of 10%. Khani Khola Hydropower Company Ltd, Himalaya Urja Bikas Company Ltd, Gurkhas Finance Ltd and Ru Ru Jalbidhyut Pariyojana Ltd were the other major gainers.
Prabhu Select Fund and Chandragiri Hills Ltd suffered the most with both securities tumbling around 3%. Kumari Bank Ltd, Nepal Bangladesh Bank Ltd, Century Commercial Bank Ltd and RSDC Laghubitta Bittiya Sanstha Ltd were among other decliners with dips of more than 2%.
As per the ARKS technical analysis, the index formed another bullish candlestick suggesting buyers’ control. However, with the candlestick getting smaller and with wicks on both side, some indecision can be witnessed in the day’s trading along with subsiding momentum. Momentum indicators also maintain positive bias. But with RSI close to 70 mark, some correction can also be expected in the current juncture.
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)
