KATHMANDU, Jan 11: The second trading week of January began on a high note with the Nepal Stock Exchange (Nepse) index trading in green throughout the session. After climbing more than 30 points in the beginning trading hour, the index pulled back slightly at mid-day. The index advanced further in the latter trading hours with Nepse closing at 2,235.73– up 41.24 against Thursday’s close.
The equity market, subsequently, notched fresh highs in three consecutive sessions. Following some selling pressure in the mid-week earlier, the index has found a strong footing above 2,150 mark. Though the equity market has seen modest corrections in the recent upward moves, the overall course of the market remains firmly upbeat. Market participation has also been improving gradually. Over Rs. 6.32 billion worth of equities were traded on Sunday.
Development Bank, Banking and Trading sectors led the gains in the session. The respective sub-indices rose 3.98%, 3.59% and 3.17%, respectively. Finance sector saw strength following its BFI counterparts. Finance sub-index jumped 2.15%. Hotels and Hydropower sub-groups closed over 1% higher. All sectors ended in green, except Life Insurance group, which inched marginally lower.
Shares of Prabhu Bank Ltd were traded the most. The commercial bank saw transactions of over Rs. 402 million. Kumari Bank Ltd and Nepal Reinsurance Company Ltd’s shares were also heavily traded with turnovers of Rs. 304 million and Rs. 241 million. Nabil Bank Ltd, Prime Commercial Bank Ltd and Siddhartha Bank Ltd were among other active stocks.
Prabhu Life Insurance Ltd topped the list of gainers. Its share price jumped 10% on the day. Narayani Development Bank Ltd, Kumari Bank Ltd, Aarambha Chautari Laghubitta Bittiya Sanstha Ltd, United Finance Ltd and Corporate Development Bank Ltd also rallied over 9% each. Nepal Finance Ltd, Prime Commercial Bank Ltd, Mahalaxmi Bikas Bank Ltd and Lumbini Bikas Bank Ltd were among other major gainers.
Nirdhan Utthan Laghubitta Bittiya Sanstha Ltd, on the other hand, suffered the biggest percentage loss of the day. Its share price dropped 4.31% after the microfinance company announced 13% stock dividend for the year 19/20. In the year earlier, the company had distributed 40% dividend including 25% bonus shares and 15% cash dividend. Himal Dolakha Hydropower Company Ltd, NLG Insurance Company Ltd and Nerude Laghubitta Bittiya Sanstha Ltd also struggled and fell around 3% each. Other energy stocks followed suit.
As per the ARKS technical analysis, the equity index formed a bullish candlestick adding to previous week gains. After a rebound from 2,150 mark, the equity market has continued to make fresh highs, albeit with modest gains. Technical indicators also suggest that buyers are dominating the trading sessions of late. Increase in traded volumes also suggest that the market has more room for upside movement. Nonetheless, some minor retracements in the equity market can also be expected in the week.
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)