KATHMANDU, July 29: The Nepal Stock Exchange (Nepse) index opened Wednesday’s trading firmly higher and traded above the 3,100 mark in the beginning trading hour. However, with selling pressure seen in hydropower stocks, the broader market witnessed a pullback. The benchmark traded briefly in red in the afternoon before a small recovery helped the index close with a gain of 15.30 points. Nepse ended Wednesday’s session at 3,094.95.
After a steady recovery from the 2,800 mark, the buying pressure has lost some steam with few sectors leading every day’s growth. Hence, some consolidation can be expected in the current zone. Trading volumes have remained upbeat, with more than Rs. 13 billion worth of equities being traded on the day.
The Hotels & Tourism segment led the day’s rally. The sub-index shot up by 7.09%. Non-Life Insurance sub-index rose 3.08%. Sub-indices of Investment, Finance and Life Insurance stocks rose more than 2% each. Most of the sectors ended the day in green, barring Hydropower, Banking, Manufacturing & Processing and Mutual Fund sectors, which posted marginal declines.
Shares of United Modi Hydropower Ltd and National Hydropower Company Ltd were the most actively traded stocks of the day with transactions of Rs. 386 million and Rs. 365 million. Arun Valley Hydropower Development Company Ltd and Sanima Mai Hydropower Ltd followed suit with turnovers of Rs. 336 million and Rs. 319 million. Api Power Company Ltd, Nepal Reinsurance Company Ltd, Arun Kabeli Power Ltd and Universal Power Company Ltd were among other actively traded stocks.
Narayani Development Bank Ltd, Multipurpose Finance Company Ltd and Chandragiri Hills Ltd were the major gainers with a surge of 10% each. Soaltee Hotel Ltd and Corporate Development Bank Ltd closed more than 8% higher. Lumbini General Insurance Ltd and Central Finance Company Ltd were the other major advances.
Panchakanya Mai Hydropower Ltd was the biggest losing scrip of the day. The energy scrip plunged 5.07% after a decent rally in the past couple of sessions. Singati Hydro Energy Ltd, Green Life Hydropower Ltd and Panchthar Power Company Ltd closed more than 4% lower. Rasuwagadhi Hydropower Ltd, Himalaya Urja Bikas Company Ltd and Liberty Energy Company Ltd tumbled over 3% apiece.
The Nepse index formed a small spinning top candlestick on the daily timeframe suggesting slight indecision. While a higher close suggests bulls still prevailing, loss of momentum was witnessed in Wednesday’s trading. Hence, a cautious approach must be taken with 3,100 acting as an immediate resistance. A correction can see the index test support at 3,000 lines.
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)