KATHMANDU, Dec 23: Stocks traded briefly in negative territory amidst active profit booking in the morning. Nonetheless, the bourse held ground after mid-day and traded around the opening level in the afternoon. Further advance in the latter trading hours saw the Nepse index close with a gain of 12.53 points at 2,520.23.

The three day advance was the first in Nepse since mid-November. Hence, buyers are slowly gaining control with investors looking past liquidity woes. Turnover remained slightly upbeat as over Rs. 4 billion worth of equities changed hands.

Finance and Development Bank sectors turned red with dips of over 1% each. Hydropower sector also closed lower. On the other hand, Non-Life Insurance segment rallied with a gain of 3.56%. Life Insurance and Manufacturing & Processing stocks also rose more than 1% on average. All other segments closed in green.

Himalayan Distillery Ltd’s shares were traded the most. Over Rs. 362 million worth of the beverage manufacturer’s shares changed hands. Gurkhas Finance Ltd, Arun Valley Hydropower Development Company Ltd, Jeevan Bikas Laghubitta Bittiya Sanstha Ltd and Api Power Company Ltd were the other actively traded stocks of the day.

Shikhar Insurance Company Ltd, Barun Hydropower Company Ltd and Jeevan Bikas Laghubitta Bittiya Sanstha Ltd were the leaders with gains of over 9% each. Narayani Development Bank Ltd, Neco Insurance Company Ltd, Shivam Cements Ltd and NLG Insurance Ltd were among other major advances.

Gurkhas Finance Ltd, conversely, tanked 6.74%. Samling Power Company Ltd and Sindhu Bikash Bank Ltd fell more than 4%. Laxmi Unnati Kosh, Himalaya Urja Bikas Company Ltd and Green Development Bank Ltd saw declines of over 3% apiece.

As per the ARKS technical analysis, the index formed a small spinning top candlestick mainly reflecting uncertainty. Following a rally of 150 points, investors remain apprehensive to take heavy long position. Nonetheless, with 2,500 support holding ground and technical indicators reflecting positive sentiment, continuation of short term upward move is highly plausible.

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)

 
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