KATHMANDU, Feb 2: The local bourse began Tuesday’s trading in green as stocks extended prior day’s advance. The index saw further strength in the afternoon and traded in positive territory throughout the remaining trading hours. A steady advance throughout the session saw Nepse end with a notable 65.49 point’s gain at 2,473.74.
Despite some correction seen in the beginning of the week, the local stock market staged a recovery adding more than 100 points in two consecutive days. While banking stocks have now held ground, surge seen in microfinance, insurance and other sectors have driven the benchmark to a new high. Market participation also improved with over Rs. 8.59 billion worth of shares being traded on the day.
Non-Life Insurance stocks were the major winners as the group’s sub-index shot up by 5.04%. ‘Others’ index also jumped 4.07%, followed by Microfinance and Life Insurance sectors which added 3.80% and 3.35%. All other sector closed the day firmly in green. Only Hotels segment ended the day in red shedding 2.85%.
Stocks end week with gains stretching May rebound
Shares of Nepal Life Insurance Company Ltd were heavily traded with turnover of over Rs. 586 million. Global IME Bank Ltd followed suit with turnover of Rs. 536 million. Nepal Telecom Ltd, Shikhar Insurance Company Ltd and National Life Insurance Company Ltd registered turnovers of Rs. 384 million, Rs. 349 million and Rs. 260 million. Nepal Life Insurance Company Ltd, Neco Insurance Company Ltd and NIC Asia Bank Ltd were among other active stocks.
Mainly insurance and microfinance stocks led the list of market leaders. Prabhu Life Insurance Company Ltd and United Insurance Company Ltd remained locked in the upper circuit of positive 10%. Janautthan Samudayic Laghubitta Bittiya Sanstha Ltd also jumped 9.98% after the micro-sector lender announced its dividend for the year 19/20. The microfinance announced 49.4% stock dividend and 2.6% cash dividend and the proposal is due for approval from its upcoming Annual General Meeting (AGM). Support Microfinance Bittiya Sanstha Ltd and Gurans Laghubitta Bittiya Sanstha Ltd were among other major winners with gains of over 9% each.
Oriental Hotels Ltd and Soaltee Hotel Ltd corrected sharply after prior day’s rally. The former closed 4.15% lower, while the latter saw a 2.70% decline. Shree Investment Finance Co. Ltd, Taragaon Regency Hotels Ltd and Century Commercial Bank Ltd also dropped more than 2% each.
As per the ARKS technical analysis, the market formed a bullish candlestick on the daily timeframe stretching prior day’s gains. Hence, an extended rebound reflects that the market still has strength to keep the uptrend intact. Momentum indicators also suggest that buyers are dominating the market in the current scenario.
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
