KATHMANDU, Sept 23: Stocks opened firmly higher with the equity market shooting up by more than 60 points in the first few minutes of trading. The index pulled back sharply followed by another surge within the first trading hour. However, selling pressure in the latter hours pushed the benchmark lower, with the index giving up all its early gains to settle around the opening level. Nepse ended Thursday’s trading at 2,819.66 – up 2.70 points against the day earlier.
Consequently, Nepse ended a highly volatile week on a subdued note. The index gyrated more than 260 points in the week amidst tussle between buyers and sellers. With the festive season approaching, daily turnover has dropped of late. A below par turnover of Rs. 7.7 billion was witnessed in the exchange.
Only Banking and Finance sub-indices managed to close in green with gains of 2.47% and 0.31%. On the other hand, Hotels & Tourism, Hydropower and Investment stocks came under pressure as the respective gauges tumbled more than 2%. All other segments ended the day in negative territory.
Cardi B files for divorce from Migos’ rapper Offset
Sanima Bank Ltd was traded the most after the commercial bank announced its dividend for the year 20/21. The bank’s board announced 17% bonus shares to its shareholders on Wednesday evening. Nepal Bank Ltd and Machhapuchhre Bank Ltd, next, posted turnovers of Rs. 271 million and Rs. 239 million. National Hydropower Company Ltd, United Modi Hydropower Ltd and Prime Commercial Bank Ltd were the other actively traded stocks of the day.
Among gainers, Manakama Smart Laghubitta Bittiya Sanstha Ltd shot up by 10% followed by Prime Life Insurance Company Ltd which jumped 6.13%. Nepal Bank Ltd and Nepal Bangladesh bank Ltd advanced over 5% each. Mailung Khola Jal Vidhyut Company Ltd and Multipurpose Finance Ltd added 4% apiece. Other commercial bank stocks followed suit.
On the other hand, Himal Power Partner Ltd and Union Hydropower Ltd were the major laggards dipping more than 5% apiece. Shivashree Hydropower Ltd, Arun Valley Hydropower Development Company Ltd, Panchthar Power Company Ltd and Green Life Hydropower Ltd posted declines of over 4% apiece. Nepal Finance Ltd, Corporate Development Bank Ltd and Universal Power Company Ltd’s shares also came under pressure.
As per the ARKS technical analysis, the index formed a small spinning top candlestick suggesting indecision after prior day’s rally. While the index made a notable recovery from around 2,600 mark, buying pressure has remained subdued above 2,800 mark. Momentum indicators also suggest shift in sentiment in favor of bulls. Nonetheless, lack of volumesreflect uncertainty in the current juncture.
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)
