KATHMANDU, August 16: The benchmark Nepal Stock Exchange (Nepse) index climbed higher in the morning but dipped sharply thereafter, pushing the index in negative territory. Although the index recouped its morning losses, the market remained fairly stable to close the day slightly in green. On Monday, the benchmark traded around 5.75 points higher to settle at 3,160.09.
Following a highly volatile session in the day earlier, stocks saw slightly subdued trading in the day. Volumes also fell as investors took a slightly cautious approach. Compared to over Rs. 21 billion of turnover on Sunday, market participation remained slightly below Rs. 16 billion mark.
Sectors ended mixed. Manufacturing & Processing sector rose sharply as the sub-index ended 2.28% higher. Investment sector rose 2.27%. Trading, Development Bank, Hydropower and Microfinance sectors climbed around 1% each. On the other hand, Hotels & Tourism sector fell the most as the sub-index dipped 1.02%. Finance and Life Insurance sectors also fell around 1% apiece. Banking, Non-Life Insurance and Mutual Fund sectors inched marginally lower.
Shares of National Hydropower Company Ltd were traded the most with over Rs. 740 million worth of the energy scrip changing hands. Nepal Bank Ltd, Hydroelectricity Investment & Development Company Ltd and Ngadi Group Power Ltd followed suit with turnovers of Rs. 647 million, Rs. 548 million and Rs. 485 million. Api Power Company Ltd, Himalayan Distillery Ltd and Ridi Hydropower Company Ltd were the other top turnover stocks.
National Hydropower Company Ltd, Corporate Development Bank Ltd, Ridi Hydropower Development Company Ltd, Khani Khola Hydropower Co Ltd and Jeevan Bikas Laghubitta Bittiya Sanstha Ltd remained locked in the positive circuit of 10%. Ru Ru Jalbidhyut Pariyojana Ltd, Himalaya Urja Bikas Company Ltd, First Microfinance Laghubitta Bittiya Sanstha Ltd were the other major gainers.
ICFC Finance Ltd tanked sharply and closed over 6% lower. Mountain Energy Nepal Ltd, Union Life Insurance Company Ltd, Ngadi Group Power Ltd posted declines of 5.33%, 4.53% and 4.33%. Nepal SBI Bank Ltd, Gurkhas Finance Ltd and Sunrise First Mutual Fund tumbled more than 2% apiece.
The Nepal Stock Exchange (Nepse) index formed a small spinning top candlestick on the daily timeframe suggesting indecision in the current scenario. Some consolidation, hence, is on the cards with investors mulling over the impact of the monetary policy on the equity market. Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) suggests slight loss of momentum of late. Immediate support lies at 3,100 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)