KATHMANDU, Nov 23: The equity market climbed sharply in the morning as the Nepal Stock Exchange (Nepse) index traded around 20 points higher at mid-day. However, the index gave up some of its morning gains in the latter trading hours. Nepse ended the day with a decline of 7.90 points at 2,765.44.

Following minor dips in the past couple of sessions, the market found some ground above the 2,750 mark. Monetary policy review which will most likely be announced this week, has kept transactions in the market in check. With investors lacking conviction, volumes also tumbled to less than Rs. 4 billion. 

The Hotels and Tourism segment saw strength and rallied by over 4.5%. ‘Others’ index also ended in green supported by gain in Nepal Telecom Ltd. Investment, Non-Life Insurance, Mutual Fund, Hydropower and Banking sub-indices also ended the day higher. Finance and Development Bank sectors on the other hand fell 0.88% and 0.65%. Manufacturing & Processing, Microfinance and Life Insurance sub-indices saw modest losses.

Mahalaxmi Bikas Bank Ltd was the most actively traded stock of the day with a turnover of Rs. 344 million. Nepal Telecom Ltd, next, registered transactions worth Rs. 292 million. Arun Kabeli Power Ltd, Himal Dolakha Hydropower Ltd, Nabil Bank Ltd, National Hydropower Company Ltd and Upper Tamakoshi Hydropower Ltd were among other activities of the day. 

Manushi Laghubitta Bittiya Sanstha Ltd and Chandragiri Hotels Ltd were the day’s leaders with both scripts rallying around 10% apiece. Khani Khola Hydropower Company Ltd, Nepal Insurance Company Ltd, Ghalemdi Hydro Ltd and Civil Bank Ltd rose 5.03%, 4.08%, 3.43% and 2.69%. 

Corporate Development Bank Ltd and Reliance Finance Ltd, on the other hand, dipped more than 3%. Terhathum Power Company Ltd, Sana Kisan Laghubitta Bittiya Sanstha Ltd, Guheshwori Merchant Bank & Finance Co. Ltd, Janaki Finance Ltd and Central Finance Company Ltd were among other major decliners.

As per the ARKS technical analysis, the index formed a small bullish candlestick suggesting extension of indecisiveness. Dipping volumes also indicate the possibility of further consolidation. Momentum indicators are also trading around the neutral zone which strengthens the possibility of sideways movement. The 2,680 support line still holds, while resistance lies at the 2,850 mark. 

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) 

 
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