Nepse ends marginally higher after two-day decline

Published On: October 15, 2020 10:25 PM NPT By: Republica  | @RepublicaNepal


KATHMANDU, Oct 15: While the local stock exchange opened notably in green in the morning, a sharp pullback in the morning brought the Nepal Stock Exchange (Nepse) index close to its opening level. Stocks witnessed lackluster trading thereafter as the index wavered along the opening level for most of the afternoon. The benchmark ended Thursday’s session 1.29 points higher at 1,562.46 points.

With holidays inching closer, the bourse has continued to see highly subdued trading of late. Majority of investors and traders have remained off their desks contributing to relatively bland session on the last trading day of the week. Turnover remained below Rs 1.5 billion mark.

At the end of the session, sectoral performance was mixed with minimal movement towards either side. Among gainers, ‘Others’ and Hydropower segments closed 0.65% and 0.54% higher. Trading, Banking and Mutual Fund sub-groups also eked out marginal gains. On the flipside, Manufacturing & Processing and Hotels segments suffered the most as the respective sub-indices dropped almost 1%. Development Bank stocks also corrected 0.54% on average. Non-Life Insurance, Life Insurance, Microfinance and Finance stocks fell marginally.

Nepal Reinsurance Company Ltd led the list of top turnover scrips. Over Rs 74 million worth of the reinsurer’s shares changed hands on Thursday. Shivam Cements Ltd closely followed with a total transaction of over Rs 68 million. The cement manufacturer announced 24.21% cash dividend for the fiscal year 2019/20. Arun Valley Hydropower Development Co. Ltd and Nepal Life Insurance Company Ltd registered turnovers of around Rs 55 million apiece. Manjushree Finance Ltd, Arun Kabeli Power Ltd and Prime Commercial Bank Ltd were among other heavily traded shares.

Nepal Finance Ltd and General Insurance Company Nepal Ltd saw considerable strength with both scrips hitting the upper circuit limit of positive 10%. Mountain Hydro Nepal Ltd closely followed with a gain of 7.33%. Other energy stocks also saw notable buying pressure. Rairang Hydropower Development Company Ltd, Khanikhola Hydropower Company Ltd and Sanima Mai Hydropower Ltd were the other major winners on Thursday.

Conversely, shares of Gurans Laghubitta Bittiya Sanstha Ltd and Ankhu Khola Jalvidhyut Company Ltd came under pressure and tanked more than 5%. Nepal Hydro Developers Ltd registered a loss of 4.55%, while Unilever Nepal Ltd and Excel Development Bank Ltd suffered declines of over 3%.

On the technical front, the selling pressure showed sign of cooling off with the formation of a small bearish candlestick. This reflects that buyers and sellers negated each other in the day. Hence, some indecision is visible in the bourse as the index traded close to its support of 1,550 points. Gradual decline in volume also reflects lack of any real force behind the recent correction. A rebound from 1,550-point mark with volume can provide a decent opportunity to go long in the equity market.

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)

www.arkscapitaladvisors.com


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