KATHMANDU, Jan 4: The benchmark Nepal Stock Exchange (Nepse) index witnessed another upbeat trading session with the index trading mostly in green on Tuesday. Despite correcting in negative territory briefly, Nepse made a steady advance throughout the trading hours. At the close, Nepse settled at 2,679.95 – up 63.01 points against the session earlier.
A series of gains seen in different sectors have helped the index make a recovery towards its November high. Since mid-December, the index has recovered over 400 points pointing towards end of short term correction. Turnover remained moderate as Rs. 4.32 billion worth of equites changed hands.
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Development Bank, Finance and Banking segments led the advance with rallies of 5.23%, 3.71% and 3.61%, respectively. All other sectors saw decent gains on the day barring Manufacturing & Processing and ‘Others’ sectors.
Shares of Nepal Bangladesh Bank Ltd were traded the most followed by those of Nabil Bank Ltd. The commercial banks saw turnovers of Rs. 148 million and Rs. 131 million, respectively. Api Power Company Ltd, Himalayan Distillery Ltd, Upper Tamakoshi Hydropower Ltd and Shivam Cements Ltd were the other actively traded shares.
Shree Investment & Finance Company Ltd and Saptakoshi Development Bank Ltd were the leaders with gains of 10%. Madhya Bhotekoshi Jalvidhyut Company Ltd, SBI Bank Ltd and Sindhu Bikas Bank Ltd rallied more than 9%. Global IME Bank Ltd, Kisan Laghubitta Bittiya Sanstha Ltd and Multipurpose Finance Ltd were among other top gainers.
Conversely, Nabil Bank Ltd and Bottlers Nepal Terai Ltd fell over 1%. Nepal Insurance Company Ltd, Samling Power Company Ltd and Himalayan Distillery Ltd were the other decliners.
As per the ARKS technical analysis, the index formed a strong bullish candlestick indicating a breakout above the downward trendline. Hence, a shift in control is observed with bulls getting stronger. Both MACD and RSI reflect room for upward movement. However, some correction can also be expected given the market’s 400 point’s jump in a short timeframe of 14 trading days.
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)
