Stock market ends year at record levels

KATHMANDU : On the last trading day of the year, the equity market advanced since the morning trading session. The benchmark Nepal Stock Exchange (Nepse) index rose almost 19 points by mid-day before correcting slightly. However, a steady rise in the latter trading hours pushed the index 23.23 points to settle at 2714.79.

With the day’s advance, the index has stretched its gains for second straight sessions. Consequently, the index also marked its all-time high at 2714 point’s mark on the last trading day of the year. Investors have largely maintained a positive bias in the equity market.  Over Rs. 7.14 billion worth of securities were traded on Tuesday.

Development Bank, Banking, Trading and Hydropower sub-indices rallied 3.41%, 2.3%, 1.79%, and 1.23% respectively. Similarly, Mutual Fund and Finance sub-index closed in green with a meager increment.

 On the other hand, the Hotels and Tourism segment suffered the most and lost 1.61%. Likewise, Non-Life Insurance, Manufacturing & Processing, Others, Microfinance, Life Insurance and Investment ended the day on a lower note with a slight decrement.

Nabil Bank Ltd and Nepal Bank Ltd were the most actively traded stock of the day with a turnover of over Rs. 286 million and Rs. 281 million respectively. Similarly, it was followed by shares of NIC Asia Bank Ltd and Nepal Infrastructure Bank Ltd which registered with a turnover of Rs. 243 million and Rs. 211 million correspondingly. Nepal Bangladesh Bank Ltd, API Power Company Ltd, Kumari Bank Ltd, and Upper Tamakoshi Hydropower Ltd was the other actively traded stocks for the day.

NIC Asia Laghubitta Bittiya Sanstha Ltd hit the upper circuit limit of 10%. Likewise, Mountain Energy Nepal Ltd, Jyoti Life Insurance Ltd, Sindhu Bikas Bank Ltd, and Chhyangdi Hydropower Ltd also remained locked in the positive circuit level of above 9.8%. Mahila Laghubitta Bittiya Sanstha Ltd also jumped 8.06%. Lumbini Bikas Bank Ltd, Guheshwori Merchant Bank & Finance Co. Ltd and API Power Company Ltd were the other gaining scrips for the day.

On Contrary, Laxmi Laghubitta Bittiya Sanstha Ltd and Global IME Laghubitta Bittiya Sanstha Ltd slumped 4.27% each. NRN Infrastructure and Development Bank Ltd, Infinity Laghubitta Bittiya Sanstha Ltd, Shree Investment Finance Co. Ltd, Gurans Laghubitta Bittiya Sanstha Ltd and Unilever Nepal Ltd suffered losses of over 3% each.

In terms of ARKS technical analysis, the index formed a bullish candlestick on the daily timeframe marking a fresh high which reflects buying momentum prevailing in the market. Likewise, technical indicators also suggest that sentiment slightly favoring bulls in the current context. While some correction can be expected, the overall uptrend in the equity market has remained intact.