KATHMANDU, March 24: The Nepal Stock Exchange (Nepse) index saw another upbeat session with the market trending firmly in green throughout the trading hours on Wednesday. The index climbed around 30 points in the morning but retraced slightly around mid-session. However, another rise in the latter half of the trading hours pushed the index higher to close at 2,570.31 – up 41.36 points against the session earlier.
With the index staging a rebound after hitting the 2,370 mark at mid-March, the index is now just 70 points off its all-time closing high. The broad rally saw most of the composite stocks end in green. Turnover also improved on the day. Over Rs. 6.67 billion worth of equities changed hands in the session.
Trading sub-index saw the biggest percentage gain of the day. The average rose 9.40%. Hotels and Tourism and Investment indices also saw strength and jumped over 5% apiece. Microfinance scrips followed suit with a 2.69% gain. All other sectors ended in positive territory.
Shares of Nepal Infrastructure Bank Ltd were traded the most with a total transaction of over Rs. 652 million. Upper Tamakoshi Hydropower Ltd and Nepal Bangladesh Bank Ltd followed with turnovers of RS. 416 million and Rs. 346 million. Hydroelectricity Investment & Development Company Ltd, Api Power Company Ltd and Nepal Life Insurance Company Ltd were among other actively traded shares.
Salt Trading Corporation led the list of major gainers with the stock hitting the upper circuit of positive 10%. Hydroelectricity Investment & Development Company Ltd, Chandragiri Hills Ltd, RSDC Laghubitta Bittiya Sanstha Ltd, Mountain Hydro Nepal Ltd and Kalika Power Company Ltd also rallied more than 9%. Mainly, other microfinance stocks dominated the list of top gainers.
Rairang Hydropower Development Company Ltd, Upper Tamakoshi Hydropower Ltd and Sanjen Jalavidhyut Company Ltd, on the other hand, were the biggest losing scrips of the day with each tumbling more than 3%. Khani Khola Hydropower Co. Ltd, Joshi Hydropower Development Company Ltd, Ankhu Khola Jalvidhyut Company Ltd and Arun Valley Hydropower Development Company Ltd fell around 2% each.
The index extended its upward move with another bullish candlestick formation on the daily timeframe. Hence, a move towards the upside seems highly likely with immediate resistance at 2,600 level. Bullish MACD cross as well as rising Relative Strength Index (RSI) reflects momentum favoring buyers in the present context. Towards the downside, 2,500 level can be taken as the immediate support level.
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)