KATHMANDU, Nov 4: The Nepal Stock Exchange (Nepse) started Wednesday’s session mildly higher. Following a small dip, the benchmark index traded in red at mid-day. The bourse, thereafter, witnessed choppy trading and hovered around the opening level throughout the remaining trading hours. Nepse finished Wednesday’s trading at 1,640.64 – down 2.39 points against prior close.

The benchmark has continued to witness highly subdued volatility pointing towards slight indecisiveness among investors. Nonetheless, the index is yet to witness any major correction despite reaching its multi-year closing high of 1,647-point mark in the week earlier. Hence, the general tone of the market remains bullish. Turnover also dropped notably with only Rs 1.76 billion worth of shares being traded suggesting a period of consolidation and subdued momentum n the present context.

Trading index continued to see gains as the sub-group jumped 2.07% on the day. Meanwhile, ‘Others’, Hotels, Hydropower and Mutual Fund sectors saw modest gains. On the other hand, Non-Life Insurance sub-index registered a decline of 1.07%. BFIs followed suit with Development Bank, Finance and Banking sub-indices losing 0.54%, 0.33% and 0.23%, respectively. Life Insurance, Microfinance and Manufacturing & Processing sector inched marginally lower.

Among actives, shares of Prime Commercial Bank Ltd witnessed the highest turnover of the day. More than Rs 90 million worth of the commercial bank stock were exchanged. Arun Kabeli Power Ltd and Nepal Telecom Ltd’s shares posted turnovers of Rs 82 million and Rs 76 million. Api Power Company Ltd, Gurans Life Insurance Company Ltd and Hydroelectricity Investment and Development Company Ltd were among other heavily traded shares.

Bishal Bazar Company Ltd continued to hit upper circuit. Its share price shot up by another 10% on Wednesday. Sanima General Insurance Ltd also rose 9.97% on its first day of trading. Kalika Power Company Ltd and Panchthar Power Company Ltd rallied over 6% each. Nepal Lube Oil Ltd, Sarathi Nepal Laghubitta Bittiya Sanstha Ltd and Ankhu Khola Jalvidhyut Company Ltd were the other major gainers.

Conversely, Shiva Shree Hydropower Ltd led the list of losers. The energy stock tumbled 5.17%. Kamana Sewa Bikas Bank Ltd also came under pressure with its share price dropping 3.78%. Summit Laghubitta Bittiya Sanstha Ltd, Rastriya Beema Company Ltd and Nepal Finance Ltd retraced over 2% apiece. Mountain Hydro Nepal Ltd, 11% NICA Debenture 82/83 and Gurans Laghubitta Bittiya Sanstha Ltd ended around 2% lower.

Swadeshi Laghubitta Bittiya Sanstha Ltd and RMDC Laghubitta Bittiya Sanstha Ltd published their first quarter financials on the day. While the former reported a 74% year-on-year growth in its net profit to Rs 33.40 million, the latter’s after tax earnings fell by 17% year-on-year to Rs 60.58 million.

The equity index extended its consolidation phase with another small bearish candlestick formation. Wednesday mark’s a fifth straight day of trading, where the index closed within a narrow range around 1,640 point’s mark. Hence, the current sentiment remains neutral.

Further, ARKS technical analysis indicates that the momentum of the market has subsided with more sideways movement likely. However, traders and investors must watch out for a possible breakout above 1,650 points mark, which can see the index make further strides to the upside.

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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