KATHMANDU, Mar 6: Stocks started the day's trading on a flat note as the Nepal Stock Exchange (Nepse) index hovered around 1,100 points mark in the initial trading before dipping briefly below the psychological mark by midday. However, stocks advanced in the afternoon session and traded in green for the latter trading hours. At the close, Nepse posted a marginal gain of 2.06 points to end the day's trading at 1,102.64 points.

The benchmark index has been wavering close to 1,100-point level in the recent sessions. Meanwhile, the bourse has also continued to turn in a spate of bland trading sessions as investors seem reluctant to take any major positions in the secondary market. The market witnessed a minimal turnover of Rs 225 million on the day.

Most of the sectors saw some strength on Tuesday. Only Trading and 'Others' indices closed the day in red, logging losses of 1.1 percent and 0.45 percent, respectively. Conversely, Manufacturing & Processing sub-index surged to post a gain of 1.44 percent. The Finance, Hydropower and Microfinance sub-indices advanced by 0.52 percent, 0.45 percent and 0.39 percent, respectively. All other sub-indices, including the market heavyweight Banking sub-index, closed slightly higher.

Shares of Asian Life Insurance Company Ltd was traded the most on Tuesday as the company posted turnover of over Rs 22 million. The life insurer is closing its shareholders' book on Wednesday to launch 60 percent rights issue. With this, the company will meet the minimum capital requirement mark of Rs 2 billion. Shares of Nepal Life Insurance Company Ltd were also traded actively after the company announcement dividends on Sunday. More than Rs 18 million worth of the shares of the company changed hands on the day. Commercial banks followed suit as NIC Asia Bank Ltd, NMB Bank Ltd and Nepal Investment Bank Ltd Promoter Shares were traded actively.

Suryodaya Laghubitta Bittiya Sanstha Ltd was the best performer of the day as its share price rallied by 6.44 percent. Share prices of Central Finance Company Ltd and Gurkhas Finance Ltd also went up by 4.59 percent and 3.85 percent, respectively. Similarly, Ridi Hydropower Company Ltd, Bhargav Bikash Bank Ltd and Barun Hydropower Company Ltd saw their share prices surge by over 3 percent each.

Among losing scrips, share prices of Sindhu Bikash Bank Ltd came under significant pressure and tanked 7.93 percent. Energy stocks also struggled as Ghalemdi Hydro Ltd and Joshi Hydropower Development Company Ltd saw their share prices go down by over 4 percent each. Microfinance stocks, including Mahuli Samudayik Laghubitta Bittiya Sanstha Ltd, Mithila Laghubitta Bittiya Sanstha Ltd and Global IME Laghubitta Bittiya Sanstha Ltd, were other major losers of the day.

On news front, Nepal Insurance Company Ltd is floating 65 percent rights issue for its shareholders from Tuesday. The issue is open till April 8.

The benchmark index, as per the ARKS technical analysis, formed a bullish candlestick on Tuesday, erasing some of its previous day losses. Meanwhile, the index has continued to trade in a narrow span suggesting lack of conviction in the secondary market. Further, despite the index continuing its bearish run, technical indicators suggest selling momentum slightly easing off in the current scenario.

 
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