KATHMANDU, March 23: The equity market opened in the green note in the pre-opening session, but the Nepal Stock Exchange Nepse) index immediately pulled back to trade in red within few minutes of the trading session. Nonetheless, Nepse managed to recoup its early losses within half an hour of trading and continued on the positive side of the spectrum in the latter trading hours. In the end, Nepse closed the day 14.57 points up at 2528.96. The bourse witnessed a total turnover of over Rs.514 billion on the day.
Trading segment rose 9.34% on the day. Similarly, Hydropower and Hotels and Tourism sub-index also rallied 5.84% and 4.97% respectively. Non-Life Insurance, Microfinance and Investment sub-indices jumped 1% each. Similarly, Mutual Fund sectors also closed in the green with a meager increment. On the other hand, Banking, Development Bank, Finance, Manufacturing & Processing, Others and Life Insurance sectors closed slightly lower.
Among actives, Nepal Infrastructure Bank Ltd shares were heavily traded with a turnover of Rs. 526 million. Likewise, Upper Tamakoshi Hydropower Ltd and Nepal Bangladesh Bank Ltd followed suit with the transaction of Rs. 328 million and 287 million respectively. Nepal Life Insurance Company Ltd, Rasuwagadhi Hydropower Company ltd, Salt Trading Corporation, and Nirdhan Utthan Laghubitta Bittiya Sanstha Ltd were among other actively traded shares which the registered total turnover over Rs.155 million, Rs.137 million, Rs.125 million , and Rs.124 million correspondingly.
Among gainers, shares of Salt Trading Corporation saw the biggest percentage gain with the stock price rallying almost 10%. Chandragiri Hills Ltd, Rasuwagadhi Hydropower Company Ltd, Kalika Power Company Ltd, Sanjen Jalabidhyut Company Ltd, Womi Microfinance Bittiya Sanstha Ltd, Upper Tamakoshi Hydropower Company Ltd and Rairang Hydropower Company Ltd also shot up by over 9% each. Similarly, Suryodaya Laghubitta Bittiya Sanstha Ltd, Mahuli Samudayik Laghubitta Bittiya Sanstha Ltd and Mero Microfinance Bittiya Sanstha Ltd were among other gaining scrips for the day.
On the other hand, Panchakanya Mai Hydropower Company Ltd suffered the most a decline of 4.15% on the day. Saptakoshi Hydropower Bank Ltd and Himalayan Power Partner Ltd’s shares tanked above 3% each whereas Arun Valley Hydropower Company Ltd and United Finance Ltd lost 2% apiece. Unilever Nepal Ltd, Guheshwori Merchant Bank & Finance Co. Ltd, Mahalaxmi Bikas Bank Ltd and 10.50% SBL Debenture 2082 also closed in the red.
As per the ARKS technical analysis, the equity market closed Tuesday’s trading day above the opening level which also helped the index recoup prior day losses. Technical Indicators like Moving Average Convergence/Divergence (MACD) also shows bulls gaining momentum in the present context and the likelihood of a stretched recovery. However, the market might witness some retracement. Immediate support can be taken as a 2,500 psychological 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)