KATHMANDU, Sept 24: The benchmark Nepal Stock Exchange (Nepse) index wavered between gains and losses throughout Sunday's trading session before ending slightly higher. The index, which lost more than 4 points in the afternoon, recovered all its losses late in the session, gaining 2.61 points to close at 1,257.68 points.
The bourse recovered most of its previous session's losses on the first trading day of the week. Hence, the overall market sentiment remains fairly bullish. The recent rally witnessed in the bourse is also supported by above average turnovers in the sessions of late. Total daily turnover rose to Rs 693 million, up from Rs 555 million recorded in the previous trading day.
Sectoral stocks showed mixed result on the day. Six of the sectoral sub-indices closed higher, while the remaining five ended in red. Among the gaining sectors, strength was visible in Trading stocks with its sub-index surging 4.58 percent. Banking sub-index also climbed up by 0.81 percent. Hydropower, Finance, Hotels and Development Bank's sub-indices also edged higher. Conversely, sub-indices of 'Others' and Non-Life Insurance sub-groups dropped went down by more than 1 percent. Further, Microfinance, Life Insurance and Manufacturing & Processing sub-indices also shed values.
Market activity drops as Nepse fails to extend gains
NIC Asia Bank Ltd was the most actively traded scrip on the day as Rs 70 million worth of its shares were traded on the day. Next on the list was Capital Merchant Banking & Finance Ltd Promoter Shares with turnover of more than Rs 67 million. Manual trading of the company's shares resumed on Thursday last week. The company's trading was suspended mid-year in 2011 after the company was declared troubled by Nepal Rastra Bank (NRB). Besides, Global IME Bank Ltd, Prabhu Bank Ltd and NMB Bank Ltd registered turnovers of Rs 64 million, Rs 58 million and Rs 38 million, respectively.
Salt Trading Corporation was the top gainer of the day as its share price rallied by 8.98 percent to Rs 364 per share. Second on the list was Prabhu Bank Limited which saw its share price appreciate by 6.45 percent. Manjushree Finance Ltd and Kabeli Bikas Bank Ltd posted gains of 5.51 percent and 5.13 percent, respectively. Other gaining securities include Janaki Finance Ltd, Mero Microfinance Bittiya Sanstha Ltd and NIBL Pragati Fund.
Kalika Laghubitta Bittiya Sanstha Ltd, on the other hand, suffered the most with its share price falling by 7.43 percent. Correspondingly, Swarojgar Laghubitta Bikas Bank Ltd saw its share price tumble by 4.87 percent. The micro sector lender is floating 100 percent right shares to its shareholders from October 9. Further, share price of National Hydro Power Company Ltd was down by 3.61 percent. Mithila Laghubitta Bittiya Sanstha Ltd, Miteri Development Bank Ltd and Chhyangdi Hydropower Ltd were among other losing stocks of the day.
On news front, Bhargav Bikas Bank Ltd and Shine Resunga Development Bank Ltd are holding their respective annual general meetings (AGMs) on October 13 and October 14. Approval of bonus shares is one of the agendas of both the development banks.
ARKS technical analysis indicates the index holding ground in its current range. Hence, short term uptrend is likely to continue if the index maintains above 1,240-point mark. Moving Average Convergence/ Divergence (MACD), which trends firmly in the positive territory, also indicates upbeat sentiment prevailing in the present context.
This column is produced by ARKS Capital Advisors Ltd www.arkscapitaladvisors.com
(Views expressed are those of the producer and do not necessarily reflect those of this publication)
