KATHMANDU, August 18: The Nepal Stock Exchange (Nepse) index fell slightly in the morning before an advance pushed the market in positive territory by mid-day. Stocks continued to climb in the afternoon with the index adding as much as 60 points in the afternoon. Following a slight retracement in the closing minutes, Nepse ended the day around 38 points higher at 3,198.60.
After consolidation around 3,150 mark for around 5 days, the index saw upbeat movement on Wednesday. With most of the sectors witnessing strength, the index crossed 3,200 mark in the afternoon. The market witnessed a turnover of Rs. 21.31 billion, its second highest market participation till date.
Most of the sectors ended in positive territory, while only Mutual Fund, Trading and ‘Others’ sub-indices ended in red. Development Bank and Finance sectors were the biggest percentage gainers of the day with the respective sub-indices rallying 5.61% and 4.79%. Manufacturing & Processing sector also saw strength and jumped 3.5%. All other sectors ended the day firmly on a positive note.
National Hydropower Company Ltd was the most heavily traded scrip of the day with a turnover of Rs. 788 million. Api Power Company Ltd and Lumbini Bikas Bank Ltd followed suit with turnovers of Rs. 634 million and Rs. 597 million. Mahalaxmi Bikas Bank Ltd, Jyoti Bikas Bank Ltd and Kamana Sewa Bikas Bank Ltd were the other active stocks with turnovers of over Rs. half a billion each. Other energy stocks followed suit.
Arun Valley Hydropower Company Ltd, Arun Kabeli Power Ltd, Shivam Cements Ltd and Jeevan Bikas Laghubitta Bittiya Sanstha Ltd shot up by 10% apiece. Ankhu Khola Jalvidhyut Company Ltd, Mahalaxmi Bikas Bank Ltd and Goodwill Finance Ltd also saw gains of over 9% apiece. Besides, mainly development banks and energy stocks saw strength in the day.
RSDC Laghubitta Bittiya Sanstha Ltd, Khanikhola Hydropower Co. Ltd and RMDC Laghubitta Bittiya Sanstha Ltd were the biggest laggards with losses of 3.35%, 3.10% and 2.87%. Himalaya Urja Bikas Company Ltd, Ghalemdi Hydro Ltd and Liberty Energy Company Ltd were among other major laggards.
On the technical front, the index formed a bullish candlestick reflecting buyer’s dominance on Wednesday. Momentum indicators also suggest some strength after consolidation. Nonetheless, the index retraced after reaching 3,200 mark, which acts as a resistance. Hence, the psychological mark must be closely monitored before taking any major buying position as a correction can see the index test 3,150 mark towards the lower side.
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)