KATHMANDU, August 17: The Nepal Stock Exchange (Nepse) index climbed around 3,175 mark in the morning before correcting sharply to trade in red at mid-day. Nonetheless, the index hovered around the opening level throughout the latter half of the session. The benchmark finally ended with a 0.23 point’s rise at 3,160.32.
The index has continued to trade flat after the unveiling of the monetary policy, with strength seen mainly in hydropower, development bank and finance stocks. Turnover has also remained upbeat with over Rs. 18 billion worth of equities changing hands.
Sectors ended mixed contributing to the lackluster movement of the broader index. Development Bank and Finance sub-indices rose the most with the respective sub-indices rallying 5.17% and 4.88%. Hydropower sub-index rose 3.17%. Manufacturing & Processing, Microfinance and Investment sub-indices also inched higher. Trading, Life Insurance and ‘Others’ sub-indices fell the most with each sector losing around 1.4% apiece. Non-Life Insurance and Banking sectors fell more than 1%. Hotels and Mutual Fund segments inched 0.87% lower.
Api Power Company Ltd’s shares were traded the most with over Rs. 863 million worth of shares being traded. Hydroelectricity Investment & Development Company Ltd, Arun Kabeli Power Ltd and Ridi Hydropower Development Company Ltd posted turnovers of Rs. 624 million, Rs. 603 million and Rs. 552 million. Besides, mainly hydropower stocks were actively traded.
Gurkhas Finance Ltd, First Microfinance Laghubitta Bittiya Sanstha Ltd, Dibyashwori Hydropower Ltd, Arun Kabeli Power Ltd, Ankhu Khola Jalvidhyut Company Ltd, Joshi Hydropower Development Company Ltd, Panchakanya Mai Hydropower Ltd, Himal Dolakha Hydropower Company Ltd, Mountain Energy Nepal Ltd, Ru Ru Jalbidhyut Pariyojana Ltd, CEDB Hydropower Development Company Ltd and Jeevan Bikas Laghubitta Bittiya Sanstha Ltd rallied sharply with each scrip rising 10% each. Further, hydropower, development bank and finance stocks were among other major gainers.
Machhapuchhre Bank Ltd fell the most closing around 2.75% lower. Prime Life Insurance Company Ltd, National Microfinance Bittiya Sanstha Ltd, Mirmire Laghubitta Bittiya Sanstha Ltd and SBI Bank Ltd followed suit with losses of around 2.3%. Besides, banking, insurance and microfinance stocks were the other major laggards.
The Nepal Stock Exchange (Nepse) index formed a small doji candlestick on the daily timeframe suggesting indecision in the current scenario. Meanwhile, the broader market is showing signs of further range bound movement. Technical indicators also suggest loss of momentum of late. Meanwhile, 3,200 mark acts as a strong resistance where a breakout can point towards further upward movement.
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)