KATHMANDU, Dec 1: The Nepal Stock Exchange (Nepse) finally found some footing on Wednesday with the index trading in green throughout the session. The index shot up by around 20 points at mid-day to test the 2,650 mark. However, the market failed to sustain morning gains and pulled back slightly in the closing minutes. At the close, Nepse registered a gain of 5.28 points to settle at 2,633.66.
Following a sharp dip after the monetary policy review, investors found some respite in the session as the market managed to snap its 4-day losing run. However, turnover has remained subdued with a total transaction of less than Rs. 2.74 billion.
Most of the sectors saw strength with ‘Others’ index shooting up by 1% followed by Manufacturing & Processing sector which added 0.89%. Trading sector rose 0.43%, Finance group climbed 0.28%, while Hydropower index eked a gain of 0.23%. Only, Hotels & Tourism, Non-Life Insurance, Microfinance and Life Insurance segments ended lower.
Nepal Telecom Ltd was traded the most as over Rs. 145 million worth of the securities changed hands. Himalayan Distillery Ltd, Mahila Laghubitta Bittiya Sanstha Ltd and National Hydropower Company Ltd posted turnovers of Rs. 105 million, Rs. 93 million and Rs. 85 million. Mahalaxmi Bikas Bank Ltd, Api Power Company Ltd and Hydroelectricity Investment and Development Company Ltd were the other actively traded stocks.
Samling Power Company Ltd, Nyadi Hydropower Ltd and Corporate Development Bank Ltd saw notable strength and closed over 9% higher. Samriddhi Finance Company Ltd and Narayani Development Bank Ltd closed over 7% higher. Besides, other energy stocks saw strength.
ICFC Finance Ltd, on the other hand, tanked 5.62%. United Insurance Company Ltd, Global IME Laghubitta Bittiya Sanstha Ltd and Himal Dolakha Hydropower Development Company Ltd fell around 3% apiece. Prudential Insurance Company Ltd, Sabaiko Lagubitta Bittiya Sanstha Ltd and Terathum Power Company Ltd tumbled over 2% each.
On the ARKS technical front, the index formed a small green candlestick suggesting indecision. Besides, 2,600 mark has held ground as a crucial support, making activity at this zone crucial for determining plausible market direction. Both RSI and MACD indicate feeble momentum in the market. Short term direction has remained weak with formation of lower highs and lower lows.
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)