Home Nepal stock Actions rally to surpass the 2,800 mark – myRepublica

Actions rally to surpass the 2,800 mark – myRepublica


KATMANDU, September 22: The local stock market has strengthened since the start of Wednesday’s trading hour. The Nepal Stock Exchange (Nepse) index rose more than 60 points in the morning before retreating slightly. Stocks continued to climb over the last few hours of trading, with all sectors ending firmly in the green. At the close, Nepse posted a gain of 104.88 to settle at 2,816.95.

After a very volatile session on Tuesday, investors showed renewed enthusiasm as they helped the market rebound by 100 points. However, the index has yet to experience a major rally, while still trading around 400 points below its all-time high. Turnover declined slightly with just over Rs. 6 billion shares changing hands.

The corporate and development banking segments were the leaders with respective indices jumping 8.54% and 7.75%. The hydroelectric sector climbed 5.57%. All other sectors experienced noticeable strength and closed firmly in the green.

Among the assets, Arun Valley Hydropower Development Company Ltd posted a turnover of Rs. 233 million followed by National Hydropower Company Ltd which saw a transaction of Rs. 185 million. RMDC Laghubitta Bittiya Sanstha Ltd, Himalayan Distillery Ltd and Api Power Company Ltd were the other heavily traded shares of the session.

Premier Insurance Company Ltd, Best Finance Company Ltd, Guheshwori Merchant Bank & Finance Co. Ltd, and ICFC Finance Ltd were among the top winners, with each script reaching the top 10% channel level. In addition, several other hydropower, finance and development stocks rose 10% on the day.

Amid the large rally, no stock ended in negative territory.

According to ARKS technical analysis, the index has formed a strong bullish candlestick marking a morning star candlestick pattern which generally suggests a reversal. However, the 2,800 mark needs to be watched before taking a significant position on the buyer’s side. A break above 2,800 with volume over the next few sessions may see the index make a decent rally towards 3,000. On the other hand, immediate support can be seen as 2,700 psychological lines.

This column is produced by ARKS Capital Advisors Ltd.

(The opinions expressed in the article are those of the producer and do not necessarily reflect those of this publication)

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