KATHMANDU: The Nepal Stock Exchange (Nepse) index shot up by over 13 points in the morning before pulling back slightly. The stock market witnessed some selling pressure in the afternoon with bulls dominating the rest of the session. Eventually, the benchmark average closed Tuesday slightly off its intraday high at 1,216.92 points – up 16.23 points against the session earlier.
Heavyweight banking sector continued to lead the surge with other sectors following suit. Bulls remain in complete control pushing the broader index over 1,200 points mark to notch a fresh four-month high. Further, the upbeat sentiment was also fueled by continuous improvement in terms of daily volume. Total turnover crossed Rs 1 billion for the first time since June 2019.
Most of the sub-indices registered gains on the day, while only Manufacturing & Processing and Hotels sectors closed in red. Non-Life Insurance, Microfinance and Hydropower stocks turned in some of the best performances of the day. Each sub-index rose by almost 2%. Further, Banking sub-index advanced 1.76%, while Development Bank sub-index climbed 1.61%. All other sectors eked out moderate gains.
Machhapuchhre Bank Ltd's shares were traded the most. The banking scrip saw turnover of Rs 195 million. Other commercial banks followed suit, NIC Asia Bank Ltd and Prabhu Bank Ltd registered turnovers of Rs 65 million and Rs 42 million, respectively. Deprosc Laghubitta Bittiya Sanstha Ltd, Nepal Credit and Commerce Bank Ltd and NMB Bank Ltd were among other active scrips of the day.
On the gainers front, Civil Laghubitta Bittiya Sanstha Ltd shot up to hit the upper circuit of positive 10%. Womi Microfinance Bittiya Sanstha Ltd, Central Finance Co Ltd and Sabaiko Laghubitta Bittiya Sanstha Ltd also jumped by over 9% each. Support Microfinance Bittiya Sanstha Ltd, Rastriya Beema Company Ltd Promoter Share and Dibyashwori Hydropower Ltd also saw considerable strength rallying around 8% apiece.
On the other hand, Bottlers Nepal (Terai) Ltd saw some of the biggest losses as its share price sank by 4%. Next, Nepal Finance Ltd dropped by 3.7%. Energy sector stocks – Ankhu Khola Jalvidhyut Company Ltd, Panchakanya Mai Hydropower Ltd and Synergy Power Development Ltd also struggled with losses of 3.44%, 2.29% and 2.06%, respectively. Bishal Bazar Company Ltd, NIC Asia Growth Fund and Nepal Life Insurance Company Ltd Promoter Share were among other major decliners.
ARKS technical analysis indicates the market forming another bullish candlestick on the daily timeframe reflecting notably upbeat sentiment prevailing in the secondary market. Momentum indicators also indicate considerable buying pressure which might see the index extend its rally further. However, following a relatively long stretch of gains, some correction can be expected in the coming sessions. An immediate resistance now lies at around 1,150 points level.
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)