KATHMANDU, Jan 6: The Nepal Stock Exchange (Nepse) index turned red in the morning but continued to see gain in the latter trading hours in the last session of the week. After reverting from 2,700 mark in the day earlier, the index made another recovery to close near the psychological level. Nepse ended Thursday at 2,692.47 – up 43.29 points against the day earlier.

Buying pressure is yet to ease off despite the market making a notable recovery from 2,200-2,300 range. With investors switching sectors, the market is devoid of any major selling pressure keeping the market afloat. However, some profit booking can be expected in the coming week. Turnover fell on daily basis with market participation worth Rs. 3.7 billion on Thursday. 

In terms of sectors, Hotels and tourism segment jumped 3.48% followed by Hydropower sector which added 2.48%. Non-Life Insurance sector also rose 2.05%. All other segments ended in green barring Manufacturing & Processing and Trading groups which inched slightly lower. 

Api Power Company Ltd and NIC Asia Bank Ltd were the top turnover stocks of the day with transactions of Rs. 164 million and Rs. 145 million. National Microfinance Laghubitta Bittiya Sanstha Ltd, Garima Bikas Bank Ltd and Himalayan Distillery Ltd were among other actives. Garima Bikas Bank Ltd declared 16% bonus shares for the year 20/21.

Nepal Finance Ltd and Terathum Power Company Ltd shot up by 10%. Madhya Bhotekoshi Jalavidyut Company Ltd, Rastriya Beema Company Ltd and Mailung Khola Jal Vidhyut Company Ltd followed suit with gains of 9.99%, 6.74% and 6.58%. Century Commercial Bank Ltd, NIC Asia Bank Ltd and Mountain Energy Nepal Ltd also saw strength. 

On the other hand, Bishal Bazaar Company Ltd, Corporate Development Bank Ltd and Bottlers Nepal Terai Ltd fell around 2% apiece. Sanima General Insurance Ltd, Panchthar Power Company Ltd and General Insurance Company Ltd dipped around 1% apiece.

As per the ARKS technical analysis, the index formed a bullish candlestick as bulls continue to drive the market. However, with 2,700 resistance approaching buying pressure has subsided. Technical indicators reflect possibility of short term upward move. A breakout of the resistance can indicate possibility of further upward move. 

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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