KATHMANDU, Oct 6: The equity marketshot up sharply in the morning on Wednesday. And held its ground around 2,640 throughout the first hour of trading session. Stocks continued to advance in the latter hours with the broad rally pushing the index 68.47 points higher to close at 2,681.10.
The bourse has continued to see upward move following a sharp decline of 600 points in less than 30 days of trading. However, the index has maintained its footing around 2,600 mark making a short term rebound plausible ahead of the festival. Turnover improved slightly as over Rs. 4.5 billion worth of shares were traded.
Finance, Microfinance and Development Bank sectors were the leading groups. The respective sub-indices rallied 6.59%, 5.80% and 4.82%. Manufacturing & Processing, Non-Life Insurance and Hydropower sectors rose by more than 3%. All other segments ended in green.
Nepse rebound continues
Citizens Bank International Ltd was traded the most. Over Rs 230 million worth of the bank shares changed hands. NIC Asia Laghubitta Bittiya Sanstha Ltd, Nirdhan Utthan Laghubitta Bittiya Sanstha Ltd and Himalayan Distillery Ltd followed suit with turnovers of Rs. 168 million, Rs. 167 million and Rs. 147 million. Chhimek Laghubitta Bittiya Sanstha Ltd, Nepal Bank Ltd and National Hydropower Company Ltd were also heavily traded.
Microfinance stocks led the list of gainers. Mithila Laghubitta Bittiya Sanstha Ltd, Global IME Laghubitta Bittiya Sanstha Ltd and Grameen Bikas Laghubitta Bittiya Sanstha Ltd rallied exactly 10%. Other finance, development bank, microfinance stocks followed suit.
Conversely, Ridi Hydropower Development Company Ltd dipped 2.16%. Ngadi Group Power Ltd fell 1.46%. Synergy Power Development, NIC Asia Laghubitta Bittiya Sanstha Ltd and Civil Bank Ltd fell marginally.
As per the ARKS technical analysis, the index formed a bullish candlestick marking a rebound from 2,550 mark. Momentum indicators also indicate a notable shift in momentum with gains of over 100 points in 2 days. A breakout of trend line above 2,700 can indicate the end of short term correction, which could point towards a consolidation or rebound in the current juncture.
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)
