KATHMANDU, Jan 8: Stocks opened week on a feeble note as the Nepal Stock Exchange (Nepse) index fell around 18 points on Monday. However, the short correction ended with Nepse rallying almost 57 points on Tuesday. Further strength ensued with the benchmark rallying 92 points on Wednesday followed by a modest 12-point gain on Thursday. Consequently, Nepse ended the review period firmly higher with a gain of 6.04% or 143.49 points at 2,520.23.
The week’s advance also marks the breach of a four-week losing run as the index fell close to its 1 year low. Turnover, meanwhile, remained on the lower side of the spectrum as any notable shift in momentum is yet to be observed. Weekly turnover was recorded below Rs. 14 billion. With liquidity crunch still evident in the financial system, investors are still apprehensive to take any major buying positions.
Nepse snaps four-day gaining run
Sensitive Index also mirrored the broader market rallying 5.25%. Manufacturing & Processing sector led the week’s gains and jumped 15.92%. Trading sub-index also shot up by 11.50%. All other sectors saw strength. Heavyweight banks rose 4.01%.
As per the ARKS weekly technical analysis, the index formed a bullish candlestick showing preliminary signs of reversal. However, a follow up green candle with volume will validate the possibility of a short term recovery. MACD and RSI reflects neutral sentiment. The immediate resistance for the market lies at 2,600 mark, while a major support can be taken as 2,300 line.
This column is produced by ARKS Capital Advisors Ltd.
www.arkscapitaladvisors.com
(Views expressed in the article are those of the producer and do not necessarily reflect those of thispublication)
