KATHMANDU, Sept 13: Stocks continued its rebound on Wednesday, gaining 13.06 points to close at 1,230.71 points. The benchmark Nepal Stock Exchange (Nepse) index lacked conviction in the initial trading hours and traded closely around the opening level of 1,217 points. However, stocks started surging midday and continued to rise till the close.
Despite lackluster performance in the beginning of the day's trading, Nepse added to its previous day's gains with increased activity toward the closing hours. Total turnover also increased to Rs 432 million compared to Rs 334 million in the previous day.
In terms of sectoral performance, most of the sub-indices ended the day in green. Only, Finance, Manufacturing & Processing, and Hotels sub-indices edged lower. Significant strength was visible in Non-life Insurance scrips reflected by an addition of almost 2 percent on its sub-index. Gains also came from Banking stocks as the groups sub-index ended the day 1.32 percent higher. Likewise, Microfinance, Development Bank and 'Others' sub-indices rose about 1 percent each.
NIC Asia Bank Ltd was the most active stock of the day as Rs 48 million worth of its shares were traded on the day. Global IME Bank was next on the list with turnover of over Rs 36 million. Further, commercial bank scrips including NMB Bank Ltd and Prabhu Bank Ltd logged turnovers of Rs 29 million and Rs 21 million, respectively. Swabalamban Laghubitta Bittiya Sanstha Ltd, Kumari Bank Ltd and Nepal Investment Bank Ltd Promoter Shares were among other actively-traded stocks on Wednesday.
Ridi Hydropower Company Ltd led the list of advances, as its share price shot up by 5.26 percent. The rally came after the hydropower company announced 6 percent bonus shares to its shareholders. Multipurpose Finance Company Ltd also saw a surge 5.26 percent on its share price. Further, shares of Prabhu Bank Ltd and NIC Asia Bank Ltd went up by 4.66 percent and 4.62 percent, respectively. Swabalamban Laghubitta Bittiya Sanstha Ltd, Rastriya Beema Company Ltd and Himal Power Partner Ltd were the other top gaining stocks.
ICFC Finance Ltd was the biggest drag in the bourse as its share price tanked over 5.78 percent. Next on the list of losing securities was Laxmi Value Fund-1 which saw its unit price shed 3.73 percent. Share price of Swadeshi Laghubitta Bittiya Sanstha also fell 3.71 percent after the company announced 10 percent cash dividend to its shareholders. Correspondingly, City Express Finance Company Ltd and Gurkhas Finance Ltd lost over 3 percent each. Further, stocks of Suryodaya Laghubitta Bittiya Sanstha and Naya Nepal Laghubitta Bikas Bank Ltd also saw their share price depreciate by 2 percent each.
On announcements, Swarojgar Laghubitta Bittiya Sanstha Ltd is holding its Annual General Meeting (AGM) on October 6. Endorsement of 20 percent bonus shares is one of the key agendas of the meeting.
ARKS technical analysis model indicates the index adding to its previous day's gains after bouncing from 1,210 points level. In the meantime, technical indicators also suggest the market gaining momentum in the current scenario. If the index manages to continue its rebound with significant turnover, the index is likely to reach 1,270 points. However, a drop below 1,210 points can see the index slump further to 1,170 points.
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)