KATHMANDU, Dec 22: Stocks moved sharply higher in morning trading before witnessing a small correction. The benchmark traded around 20 points higher for the first half of the session before an afternoon rally pushed the index firmly in positive territory. At the close, Nepse was up 56.73 points at 2,415.55.
Following a three day correction, the index found some support climbing over the psychological 2,400 hurdle. However, the market is yet to see a notable shift in momentum with daily below par turnover of less than Rs. 2.5 billion for three consecutive days.
‘Others’, Hydropower and Development Bank sub-indices rose the most with gains of over 3% each. All other segments ended with decent gains. Heavyweight Banks climbed 2%.
Nepse shoots up to cross 2,400 mark
Himalayan Distillery Ltd were traded the most with a turnover of Rs. 146 million. Nabil Bank Ltd and Nepal Telecom Ltd, next, saw turnovers of Rs. 142 million and Rs. 104 million. Manjushree Finance Ltd, NMB Bank Ltd and Nepal Bangladesh Bank Ltd were the other top turnover stocks.
Green Development Bank Ltd, Janaki Finance Ltd and Rasuwagadhi Hydropower Ltd were the day’s leaders with gains of almost 10% apiece. Green Life Hydropower Ltd, Reliance Finance Ltd, Mountain Energy Nepal Ltd and Ankhukhola Jalbidhyut Company Ltd rose by more than 7%.
Gurkhas Finance Ltd, on the other hand, tanked by 9%. Terhathum Power Company Ltd, Mailung Khola Jalbidhyut Company Ltd and Samling Power Company Ltd were among other decliners.
As per the ARKS technical analysis, the index formed a small bullish candlestick reflecting buyers’ control in the equity market. Momentum indicators also suggest marginally bullish sentiment. With a climb above 2,400 mark, the psychological level can now be taken as an area of support. A volume backed rally in the following sessions might confirm a short term recovery.
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)
