KATHMANDU, Nov 3: After opening Tuesday’s session in red, the benchmark Nepal Stock Exchange (Nepse) index saw strength in the latter trading hours. While the index traded in green throughout the session, gains remained capped with some uncertainty looming among investors. Consequently, Nepse witnessed a minor gain of 5.40 points to end Tuesday’s trading at 1,643.04.

Following a 3 consecutive sessions of minor retracements, the major average snapped its losing streak with a modest gain. Nonetheless, gains and losses have remained minimal, with Nepse trying to consolidate around 1,640-1,650 points mark after a jump of 100 points towards October end. While some profit booking was visible, investors also continued to take buying positions in the market keeping the market afloat. Turnover fell slightly compared to the session earlier. Tuesday saw a total turnover of Rs 2.24 billion against Rs. 2.45 billion on Monday.

Most of the indices maintained positive bias. Only Development Bank and Banking sectors pulled back marginally. Gains came mainly from Trading, Mutual Fund and Non-Life Insurance segments with the respective sectors posting advances of 4.80%, 2.49% and 2.18%. ‘Others’ sector also saw strength with a 1.39% rise. All other sub-groups ended the day on an upbeat note.

Shares of Nepal Telecom Ltd, the only listed telecom service provider, saw active market participation. Over Rs 100 million worth of the stocks were exchanged. NIC Asia Bank Ltd, Prime Commercial Bank Ltd and Hydroelectricity Investment and Development Company Ltd followed with turnovers of Rs. 83 million, Rs 80 million and Rs 64 million. Shiva Shree Hydropower Ltd, Deprosc Laghubitta Bittiya Sanstha Ltd and Rastriya Beema Company Ltd Promoter Shares were also actively traded.

4 companies remained locked in the upper circuit. Bishal Bazar Company Ltd, Summit Laghubitta Bittiya Sanstha Ltd, Panchthar Power Company Ltd and Shiva Shree Hydropower Ltd shot up by almost 10%. Rastriya Beema Company Ltd rallied 7.86%. NIC Asia Balanced Fund, NIBL Pragati Fund, Laxmi Equity Fund and Nabil Equity Fund also saw notable gains.

On the other hand, Mahalaxmi Bikas Bank Ltd tumbled 2.55% followed by Dibyashwori Hydropower Ltd, which ended 2.52% lower. Other energy stocks followed suit. Union Hydropower Ltd, Joshi Hydropower Development Company Ltd, Arun Valley Hydropower Development Company Ltd and Ghalemdi Hydro Ltd also posted losses of over 2% apiece.

On the technical front, the index formed a small bullish candlestick on the daily timeframe. Following a sequence of modest movements, the equity index is in consolidation phase after earlier rally. Besides, the index has managed to hold its ground above 1,600 points keeping the positive bias intact. Momentum indicators also suggest buyers gaining control. While, further restrained movements are possible, the equity market’s overall tone remains bullish.

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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