KATHMANDU, Jan 2: Stocks began this year’s trading on an upbeat note and traded in green throughout Sunday’s session. The Nepal Stock Exchange (Nepse) index climbed above 2,550 mark by mid-day, further extending its advance in the afternoon trading hours. At the close, Nepse was up 60.41 points to settle at 2,584.91. 

The market has held ground above 2,500 mark after a dip to 2,250 at mid-December. However, only few sectors led the day’s rally reflecting lack of any major conviction. Turnover also remained on the lower side of the spectrum with a total market activity of Rs. 4.12 billion. 

Manufacturing & Processing, Non-Life Insurance and Development Bank sub-indices surged 5.08%, 3.54% and 3.42%. All other segments ended in green. Only Mutual Fund sector ended marginally lower. 

Shares of Himalayan Distillery Ltd were traded the most post-adjustment of its share price for stock dividend. More than Rs. 449 million worth of the scrip changed hands. Nabil Bank Ltd and Shivam Cements Ltd followed suit with turnovers of Rs. 297 million and Rs. 235 million. Nepal Bangladesh Bank Ltd, Api Power Company Ltd and Nepal Telecom Ltd were the other actives of the session. 

Himalayan Distillery Ltd, Madhya Bhotekoshi Jalavidhyut Company Ltd and Surya Life Insurance Company Ltd were the top gainers with gains of over 9% apiece. Corporate Development Bank Ltd, Kisan Laghubitta Bittiya Sanstha Ltd, Mithila Laghubitta Bittiya Sanstha Ltd and Shree Investment & Finance Co. Ltd also rose over 7% apiece. 

On the other hand, Gurkhas Finance Ltd gave up earlier gains and tanked 5.12%. Manjushree Finance Ltd, Dibyashwori Hydropower Ltd, Ghalemdi Hydro Ltd and Samling Power Company Ltd fell around 2% each. 

As per the ARKS technical analysis, the index formed a firm bullish candlestick after consolidation above 2,500. However, with psychological resistance at 2,600, further confirmation of the possible moves is necessary before taking any major positions. Both MACD and RSI indicators, meanwhile, suggest possibility of short term upward move. 

This column is produced by ARKS Capital Advisors Ltd.

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

 
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