Nepse stretches advance crossing 2,600 mark

KATHMANDU : Stocks opened in green on Wednesday and continued to trade in green throughout the trading session. After climbing over 2,600 line, the Nepse index hovered around 2,610 in the afternoon. However, a surge in the final trading hour, saw the index close with a gain of 43.36 points to settle at 2,619.03.

The index extended its upward movement for a second straight day after consolidation at around 2,550 mark. Hence, investors are showing renewed enthusiasm after a deep correction in the month of February and March. Turnover also remained upbeat as over Rs. 6.17 billion worth of stocks changed hands on the day.

Non-Life Insurance and Banking sectors led the gains with the respective sub-indices 2.62% and 2.31%. Hotels and Tourism, Investment, Development Bank, Hydropower and ‘Others’ indices also saw considerable strength with gain of over 1% each. All other sectors closed the day in green, barring Trading group, which closed more than 2% lower.

Hydroelectricity Investment and Development Company Ltd, Upper Tamakoshi Hydropower Ltd and Nepal Infrastructure Bank Ltd were the most heavily traded shares with turnovers of Rs. 364 million, Rs. 320 million and Rs. 303 million. Nabil Bank Ltd, NIC Asia Bank Ltd, Prudential Insurance Company Ltd and United Insurance Company Ltd were the other actively traded shares.

Mahila Laghubitta Bittiya Sanstha Ltd, Ajod Insurance Ltd, Womi Microfinance Bittiya Sanstha Ltd, and Sanima General Insurance Company Ltd remained locked in the positive circuit of 10%. Prudential Insurance Company Ltd, United Insurance Company Ltd, Hydroelectricity Investment and Development Company Ltd were among other major gainers of Wednesday’s session.

On the decliners’ front, Rairang Hydropower Development Company Ltd, Bottlers Nepal Terai Ltd and United Idi Mardi RB Hydropower Ltd suffered the most with slump of around 3% each. Himalaya Urja Bikas Company Ltd, Salt Trading Corporation, Mountain Hydro Nepal Ltd and Kalika Power Company Ltd were the other major laggards.

As per the ARKS technical analysis, the index formed a strong bullish candlestick reflecting buyers gaining control of the market. The index also crossed 2,600 mark on the day suggesting possibility of further advance. However, some retracement can be expected in the coming session, where 2,600 line should provide a support for the market.