Nepse ends at new high as hydropower stocks surge

KATHMANDU : The equity market opened 20 points high in the preopening session but immediately pulled backed to trade in the red. Nonetheless, the market succeeded to recover within 15 minutes of trading, and the index traded flat till mid-day.  Likewise, the market maintained its footing in green in the last trading session.  At the close, Nepse settled at 2,674.47 – up 15.72 points against the session earlier

The index has continued to mark fresh highs for a third straight day. Over Rs. 7.47 billion worth of securities changed hands.

Hotels and Tourism segment was the major winner in Tuesday’s trading with gains of 5.62% led by the shares of Chandragiri Hills Ltd. Hydropower segment saw massive buying enthusiasm and its index rose 4.46%. Manufacturing & Processing, Investment, Microfinance, Development Bank and Mutual Fund rallied 3.3%, 2.68%, 1.31%, 1.12% and 0.13% respectively. On the other hand, Trading was the major decliners with losses of 9.46%. Non-Life Insurance and Life Insurance sub-indices dropped 2.04% and 1.1% correspondingly. Likewise, Banking, Finance, and Others sectors closed the day in negative territory with a slight decrement.

Among actives, Nepal Infrastructure Bank Ltd and Chilime Hydropower Company Ltd’s shares were heavily traded with a turnover of Rs. 398 million and Rs. 311 million correspondingly.  Upper Tamakoshi Hydropower Company Ltd, Himalayan Distillery Ltd and Himalayan General Insurance Co. Ltd followed suit with transactions of Rs. 292 million, Rs. 221 million and Rs. 212 million respectively.  Nepal Bank Ltd, Ajod insurance Company Ltd, Butwal Power Company Ltd, and Nepal Doorsanschar Company Ltd were the among other actively traded shares.

Chilime Hydropower Company Ltd, Universal Power Company Ltd, United IDI Mardi RB Hydropower Company Ltd, and Chandragiri Hills were the major winners with gains of 10% each. Womi Microfinance Bittiya Sanstha Ltd, NIC Asia Laghubitta Bittiya Sanstha Ltd, Mahila Laghubitta Bittiya Sanstha Ltd, Sanjen Jalabidhyut Company Ltd, Shiva Shree Hydropower Company Ltd and Panchakanya Mai Hydropower Company Ltd also remained locked in the upper circuit limit of almost 10%.

On Contrary, Salt Trading Corporation Ltd suffered the most and its stock tanked 10%. Shares of Sanima General Insurance Ltd and Ajod Insurance Ltd dropped over 8% each while United Finance Ltd and General Insurance Company Ltd fell above 5% apiece. IGI General Insurance Ltd, Shree Investment Finance Ltd, Prudential Insurance Ltd, and United Insurance Co. Nepal Ltd were the other losing scrips of the day.

As per the ARKS technical analysis, the market formed a bearish candlestick after closing below the opening mark. Nonetheless, the equity market managed to close at a fresh high for the third straight day. Hence, the overall uptrend has still remained intact. A correction can see the index test 2,600 line as the key support level whereas the immediate resistance lies at 2700 level.