KATHMANDU, Oct 27: The equity market opened in a positive note on Wednesday trading session. However, the index fell more than 30 points in the first minutes of trading. A sharp recovery pushed the index in green but again failed to maintain and then traded in red. However, the market succeeded to reach the key 2800 mark on mid-day. Following a volatile trading, stocks witnessed a steady advance in the final hours with the benchmark closing with an 18.06 points’ gain at 2769.13.

Turnover remained upbeat with Rs. 6.612 billion worth of shares being traded on the day.

Most of the sectors ended in the green note except Hotels & Tourism, Development Bank, Hydropower and Manufacturing & Processing ended in lower side with a slight decrement. Life Insurance ended 2.06% higher. Sub-indices of Life Insurance, Non-life Insurance and Others closed more than 1% up. All other sub-indices rose marginally.

Shares of Nabil Bank Ltd were traded the most on Wednesday. Over Rs. 431 million worth of the banks scrip changed hands. ICFC Finance Ltd, NIC Asia Bank Ltd, Arun Valley Hydropower Company Ltd, Best Finance Company Ltd and API Power Company Ltd recorded the turnovers of Rs. 209 million, Rs. 196 million, Rs. 179 million, Rs. 171 million and Rs. 166 million. Likewise, United Modi Hydropower Company Ltd, Arun Kabeli Power Ltd, National Hydropower Company Ltd were among other actively traded shares.

Shares of Best Finance Company Ltd and NIC Asia Laghubitta Bittiya Sanstha Ltd, Guheshwori Merchant Bank & Finance Company Ltd, Manushi Laghubitta Bittiya Sanstha Ltd and Gurans Life Insurance Company Ltd saw strength with advances of 8.68, 7.21%, 6.74%, 6.11% and 6.08%. Lumbini General Insurance Company Ltd, Narayani Development Bank Td, Radhi Bidyut Company Ltd, Miteri Development Bank Ltd also jumped more than 5% each.

Everest Bank Ltd Con. Pref., Rairang Hydropower Company Ltd and Ankhu Khola Jalvidhyut Company Ltd led the list of major decliners and fell by 5.24%, 4.71% and3.86% respectively.Singati Hydro Energy Ltd, Himalayan Power Parter Ltd, Sanima Large Cap Fund, Arambha Chautari Laghubitta Bittiya Sanstha Ltd and National Hydro Power Company Ltd followed suit with losses of around 2% each.

As per the ARKS technical analysis, the index form a spinning candlestick on the daily timeframe indicating an indecision in the market.  Besides, momentum indicators also point towards possibility of consolidation in the current zone. The index managed to break the level of 2800 mark but failed to sustain on Wednesday trading session. So, the key 2,800 mark must be watched before taking any significant position on the buying side. Immediate support lies at 2,600 psychological mark

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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