KATHMANDU, August 1: The Nepalese equities’ benchmark opened the day in green and traded close to 3,100 in the morning on the Sunday. However, stocks gave up its morning gains to trade around the opening level at mid-day. After lackluster trading in the afternoon, the Nepal Stock Exchange (Nepse) index ended with a 1.26 point’s gain at 3,081.07.

After a sharp recovery in the month of July, the buying momentum has lost some steam, with Nepse closing below 3,100 points  for a third straight session. Consequently, the index is showing signs of consolidation in the current range. With investors waiting for the unveiling of the monetary policy for the current fiscal year, the broader market is experiencing indecision of late. Turnover has remained upbeat with over Rs. 12 billion worth of securities changing hands on the day. 

Sectors ended mixed. While Hydropower sector shot up by 2.47%, Trading segment rose 1.73%. Investment, Microfinance, Manufacturing & Processing and Development Bank sectors fell marginally. On the other hand, Hotels & Tourism sector fell sharply resulting in a decline of 2.26% for the respective sub-index. ‘Others’, Finance, Life Insurance and Non-Life Insurance segments ended more than 1% lower. Banking and Mutual Fund segments inched lower. 

National Hydropower Company Ltd, United Modi Hydropower Ltd and Synergy Power Development Ltd were the top turnover stocks of Sunday. The respective stocks registered turnovers of Rs. 361 million, Rs. 350 million and Rs. 321 million. Ngadi Group Power Ltd, Universal Power Company Ltd, Arun Valley Hydropower Development Company Ltd and Api Power Company Ltd were among other top turnover stocks. 

Energy stocks also dominated the list of major gainers. Synergy Power Development Ltd, Kalika Power Company Ltd and Ghalemdi Hydro Ltd rallied 10% apiece. Universal Power Company Ltd, Green Life Hydropower Ltd, Jeevan Bikas Laghubitta Bittiya Sanstha Ltd, Ngadi Group Power Ltd and CEDB Hydropower Development Company Ltd rose more than 9% apiece. 

Conversely, Laxmi Equity Fund lost 6.98% after its book closure for cash dividend. Chandragiri Hills Ltd and Kumari Equity Fund dropped 3.86% and 3.55%. Narayani Development Bank Ltd, Prabhu Insurance Ltd, NIBL Samriddhi Fund-2 and Taragaon Regency Hotel Ltd closed more than 3% lower. Janaki Finance Ltd, Gurans Life Insurance Company Ltd and Manjushree Finance Ltd were among other major decliners. 

In terms of ARKS technical analysis, the index formed a small spinning top candlestick with short wicks reflecting lack of volatility and indecision in the market. Hence, some sideways movement can be expected with monetary policy unveiling on the cards. Relative Strength Index (RSI) also shows loss of momentum with the indicator flattening around the overbought zone. A breach of 3,100 resistance can see the index make fresh high. 

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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