KATHMANDU: The stock market traded in green throughout Wednesday's trading session. The Nepal Stock Exchange (Nepse) index saw a stable advance and surged over 12 points at the beginning of the last trading hour. Though stocks pulled back slightly toward the end, it managed to log gains of 8.73 points to close the day at 1,124.47 points.
Nepse stretched its gains further closing in green for a second straight day. However, the total turnover is still in a lower range as only Rs 308 million worth of shares were traded on the day.
All the sectors closed the day in green following the broader market. Life Insurance, Non-life Insurance and Microfinance sub-indices saw some of the best performances of the day with gains of 2.81%, 2.56% and 2.22%, respectively. Mutual Fund sub-index climbed ended the day 1.01% higher.
Shares of Nepal Life Insurance Company Ltd recorded the highest turnover of the day. The life insurer logged total transactions of over Rs 28 million. Likewise, NIC Asia Bank Ltd, NMB Bank Ltd, Himalayan Distillery Ltd, Janautthan Samudayik Laghubitta Bittiya Sanstha Ltd and Everest Insurance Co Ltd posted turnovers of Rs 19 million, Rs 17 million, Rs 16 million, Rs 15 million and Rs 11 million, respectively. Shares of Nepal Bank Ltd, Nabil Bank Ltd, Infinity Laghubitta Bittiya Sanstha Ltd and Laxmi Bank Ltd were also traded actively on the day.
Among gainers, Prabhu Insurance Ltd witnessed the best performance as its share price rallied by 8.5%. Similarly, share prices of Gurans Laghubitta Bittiya Sanstha Ltd, Lumbini General Insurance Company Ltd, Mahila Sahayatra Microfinance Bittiya Sanstha Ltd, Swarojgar Laghubitta Bikas Bank Ltd, Civil Laghubitta Bittiya Sanstha Ltd and Dibyashwori Hydropower Ltd climbed up by over 7% each. Other top advances include National Microfinance Bittiya Sanstha Ltd, Sagarmatha Insurance Co. Ltd and IME General Insurance Ltd.
In contract, Barun Hydropower Ltd suffered the most as its share price tanked 7.95%. Ghodighoda Laghubitta Bittiya Sanstha Ltd, Sindhu Bikas Bank Ltd and Kalika Power Company Ltd saw their respective share prices fall by 5.01%, 4.61% and 3.7%. Likewise, Nabil Equity Fund, Ridi Hydropower Development Company Ltd and Sparsha Laghubitta Bittiya Sanstha Ltd registered losses of over 2% each.
ARKS technical analysis indicates that the market formed a bullish candlestick for a second straight day, suggesting buyers dominating the market. Both Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) reflect the market gathering slight strength. However, the Nepse index still remains constrained by 1,150-point resistance. Its breach in the coming session with noteworthy turnover can suggest possibility of further upward movement in the bourse.
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)