KATHMANDU: After trading briefly in red in the morning, the major average staged a notable recovery in the afternoon. The Nepal Stock Exchange (Nepse) index traded up 20 points at mid-session. After a slight correction thereafter, the index witnessed a steady advance to close the day at its intra-day high of 1,300.62 points. The gain tally for the day stands at 23.95 points.
Following a 60-point drop in the week earlier, the index rose around 24 points suggesting a rebound on the cards. Extended profit booking seems to have lost steam in the session as buyers remained dominant since the beginning of Monday's trading. The index now rests exactly at 1,300 points which is considered as a crucial psychological mark, as analysts are likely to gauge the outlook of the equity market depending on the movement around this level. Despite being a drop against Sunday's session, the market turnover remained above par at Rs. 917 million.
All sectors closed the day in green led by Trading and Hotels stocks. Both sub-indices rallied over 4 %. After correcting for five straight days, Microfinance sub-index rose 3.34 %. Non-Life Insurance, Development Bank and Life Insurance sub-indices also added over 3 % each. Bellwether banking sector's sub-index climbed 1.61 %.
Among actives, shares of Nepal Life Insurance Company Ltd posted the highest turnover of Rs. 81 million. Global IME Bank Ltd's scrips also continued to trade actively with turnover of Rs. 53 million. Grameen Bikas Laghubitta Bittiya Sanstha Ltd, meanwhile, registered a total turnover of Rs. 46 million. NIC Asia Bank Ltd, Prime Commercial Bank Ltd Promoter Share and Gurans Life Insurance Company Ltd were among other top turnover scrips of Monday.
Microfinance scrips dominated the list of gainers. Summit Laghubitta Bittiya Sanstha Ltd, Nerude Laghubitta Bikas Bank Ltd, First Microfinance Development Bank Ltd and Asha Laghubitta Bittiya Sanstha Ltd surged over 7 % each. Gurans Laghubitta Bittiya Sanstha Ltd and Grameen Bikas Laghubitta Bittiya Sanstha Ltd closely followed with advances of almost 7 % each. Shares of Jyoti Bikas Bank Ltd, Swabhimaan Laghubitta Bittiya Sanstha ltd and Gurans Life Insurance Company Ltd also saw considerable strength as each rose over 6 % each.
In contrast, Joshi Hydropower Development Company Ltd fell 3.08 %. United Finance Ltd and Dibyashwori Hydropower Ltd sank 2.76 % and 1.96 %. Subsequently, Samriddhi Finance Company Ltd, NIBL Samriddhi Fund 1, NMB Hybrid Fund L-1 and Arun Valley Hydropower Company Ltd lost over 1 % each.
On the announcement front, Lumbini General Insurance Company Ltd declared 9.75 % stock dividend from its fiscal year 2075/76's earnings. The insurer did not distribute any dividend in the last fiscal year.
As per the ARKS technical analysis, the market formed a bullish candlestick on the daily time frame as the index made a notable recovery on the day. Meanwhile, technical indicators still show the market yet to show any significant shift in momentum against the short term downward movement. Further bullish movement, nonetheless, will substantiate this rebound enabling market to stretch its two-month advance.
This column is produced by ARKS Capital Advisors Ltd
(Views expressed are those of the producer and do not necessarily reflect those of this publication)