KATHMANDU (Oct 20): Stocks continued to see strength as the buying pressure from the session earlier stretched to Tuesday’s trading. The Nepal Stock Exchange (Nepse) index rose around 10 points in the morning but gave up some of its gains within the first trading hour. After plateauing in the afternoon, stocks continued to climb higher in the final trading hours. Eventually, Nepse finished the session at 1,583.61 – up 13.22 points against Monday’s close.
With the day’s gain, the benchmark has stretched its advance after hitting around 1,550 points in the day earlier. Hence, the pre-holiday correction seems to have lost steam with investors refraining from taking major short positions. Turnover improved slightly as over Rs 1.27 billion worth of scrips were traded on the day.
All sectors ended in green with hydropower sector leading the charge. The energy sector’s index jumped 2.02%. ‘Others’, Hotels, Development Bank, Finance and Mutual Fund sectors also saw strength and closed over 1% higher. All other sectors eked marginal gains, while Banking segment rose 0.62%.
Arun Kabeli Power Ltd’s shares led the list of actives. Over Rs 90 million worth of the stock changed hands. Api Power Company Ltd and Hydroelectricity Investment and Development Company Ltd posted turnovers of Rs 77 million and Rs 60 million respectively. Citizen Investment Trust, Himal Dolakha Hydropower Company Ltd and Shikhar Insurance Company Ltd were among other heavily traded shares.
General Insurance Company Nepal Ltd, among advances, saw the biggest percentage gain of the day. The non-life insurer’s shares jumped 10%. Mountain Hydro Nepal Ltd, Himal Dolakha Hydropower Development Company Ltd, Joshi Hydropower Development Company Ltd and Ghalemdi Hydro Ltd also saw notable buying pressure as each of the scrip rallied around 9% apiece. Other energy stocks followed suit.
On the other hand, losses were led by Nepal Finance Ltd, which fell around 2%. Next, shares of Reliance Finance Ltd dropped 1.64%. Ghodi Ghoda Laghubitta Bittiya Sanstha Ltd, Surydaya Laghubitta Bittiya Sanstha Ltd and Swabalamban Laghubitta Bittiya Sanstha Ltd fell around 1% each.
ARKS technical analysis indicates the market forming a small bullish candlestick on the daily timeframe as the stock market is showing a sign of a rebound from 1,550 level. Further, technical indicators also reflect some strength as momentum is currently shifting towards bulls. The index will likely test the resistance at around 1,600 points, a breach of which is crucial for the market to make further strides to the upside.
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)