KATHMANDU, Nov 10: The local bourse witnessed an upbeat trading session on Tuesday. The stock market opened in green and continued to witness a gradual advance throughout the trading hours. The Nepal Stock Exchange (Nepse) index rose to 1,670 points level in the morning before witnessing a small pullback at mid-day. Nonetheless, the bourse continued to see strength in the latter trading hours. At the close, Nepse registered a gain of 25.98 points to end at 1,678.79. 
Nepse stretched its winning run to 3 straight sessions with gains coming mainly from Life Insurance stocks. Hence, the overall sentiment in the Nepali equity market remains positive with market participation increasing every day. Over Rs 4 billion worth of shares were traded in the exchange – the highest turnover in the exchange post-lockdown. 
Majority of the sectors ended the day higher. Trading sector led the day’s gain with a 7.87% rally. Besides, Hotels, Life Insurance and ‘Others’ segments also saw considerable strength. All three sub-indices witnessed advances of over 4%. All other sub-groups ended the day in positive territory, barring Hydropower and Mutual Fund segments, which saw minor correction. 
Nepal Reinsurance Company Ltd and Nepal Life Insurance Company Ltd were heavily traded with turnovers of Rs 285 million and Rs 236 million. Himalayan Distillery Ltd and Nepal Telecom Ltd also saw active market participation with both stocks registering transactions of over Rs 200 million. Kamana Sewa Bikas Bank Ltd, National Life Insurance Company Ltd and Surya Life Insurance Company Ltd followed suit with turnovers of Rs 169 million, Rs 167 million and Rs 105 million.
Corporate Development Bank Ltd and Salt Trading Ltd were the biggest percentage gainers on Tuesday. Both scrips shot up by exactly 10%. Sanima General Insurance Ltd and Nepal Telecom Ltd also saw significant buying pressure with advances of over 9% each. Oriental Hotels Ltd and Himalayan General Insurance Ltd rose by more than 6%.
On the other hand, Bishal Bazar Company Ltd suffered a loss of 4.61%. Arun Valley Hydropower Development Company Ltd and Vijaya Laghubitta Bittiya Sanstha Ltd, subsequently, posted declines of 2.69% and 2.64%. Ankhu Khola Jalvidhyut Company Ltd, Shangrila Development Bank Ltd and Progressive Finance Ltd also lost more than 2% on their respective prices. 
As per the ARKS technical analysis, the market formed another green candlestick on the daily timeframe suggesting buying enthusiasm in the market. Momentum indicators also indicate buyers in control of the market. A bounce from consolidation range of 1,640-1,660 has further validated the extension of uptrend. Hence, the market is likely to make further move upwards with immediate resistance at 1,700. Meanwhile, 1650 mark can be taken as a notable support for the equity market. 
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)
www.arkscapitaladvisors.com

 
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