KATHMANDU, Feb 24: The equity market opened Wednesday’s session in green but a minor correction pulled the Nepse index towards red in the morning. Nonetheless, stocks recovered after mid-day and traded in green throughout the latter trading hours. At the close, Nepse stood 12.56 points higher to finish at 2,599.08.
After recovery from a sharp selloff in the session earlier, the stock market found some footing to claw its way back towards the 2,600 mark. The reinstatement of parliament has had no significant impact in the equity market so far as investors approached the market with enthusiasm. Nonetheless, with the political scenario yet to normalize, some indecision was also witnessed with the stock market trading flat for most of the session.
Only Hydropower and ‘Others’ segments ended the day in red with losses of 1.11% and 0.51%. Hotels stocks saw notable gains as the sub-index rose 2.30%. Non-Life Insurance, Mutual Fund and Life Insurance sectors also closed over 1% higher. All other segments ended the day marginally in the positive territory.
Nepse posts modest gains to close above 2800
Nepal Bank Ltd and Nepal Infrastructure Bank Ltd were the most heavily traded stocks of the day. Both stocks saw turnovers of over half-billion. Neco Insurance Company Ltd, NIC Asia Bank Ltd and Global IME Bank Ltd were the other active stocks with turnovers of Rs. 238 million, Rs. 205 million and Rs. 204 million.
IME General Insurance Ltd, Nepal Finance Ltd and Chandragiri Hills Ltd remained locked in the upper circuit level of positive 10%. Nepal Bank Ltd and Siddhartha Investment Growth Scheme-2 rose 5% each. NIC Asia Growth Fund, Kisan Laghubitta Bittiya Sanstha Ltd and Taragaon Regency Hotels Ltd also saw strength and closed over 4% higher.
Nepal Infrastructure Development Bank Ltd, on the other hand, extended its losses to close more than 5% lower. Arun Valley Hydropower Development Company Ltd and Aarambha Chautari Laghubitta Bittiya Sanstha Ltd suffered declines of more than 4% apiece. Mainly other hydropower stocks came under pressure.
In terms of ARKS technical analysis, the equity market formed a doji candlestick after closing almost at the opening level. Hence, some uncertainty was visible in Wednesday’s trading. Besides, volumes also dropped slightly on the day. Momentum indicators, meanwhile, reflect loss of buying momentum and consolidation around the current range seems highly likely. A deeper correction may see the index test the support at 2,500 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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