Market ends week on a positive note
Stock Exchange (Nepse) index gained 9.95 points to close the week at 1,228.28 points on Thursday. Though stocks slid in the first trading hour, a midday rebound helped the benchmark index pare all its initial losses to end the week on a positive note.
Nonetheless, investors continued to show muted enthusiasm. Hence, the exchange recorded a below average turnover of Rs 252 million.
On the sectoral front, Banking sub-index was the major contributor to the day's advance as it jumped 1.15 percent. Sub-indices of Finance, Non-Life Insurance and Development Bank segments followed suit, gaining 0.95 percent, 0.88 percent and 0.81 percent, respectively. 'Others', Microfinance, Life Insurance and Hydropower sub-groups also posted marginal gains. Only Hotels and Manufacturing & Processing groups ended the day in red.
In terms of market activity, Mega Bank Ltd posted the highest turnover of over Rs 16 million on the day. Shares of NIC Asia Bank Ltd and NMB Bank Ltd's stocks were also actively traded, recording turnover of over Rs 15 million and Rs 13 million, respectively. Other companies on the list were Janata Bank Nepal Ltd, Nepal Life Insurance Company Ltd and Summit Microfinance Development Bank Ltd.
Among advances, significant strength was visible among shares of United Finance Ltd. The finance company's share price went up by almost 8 percent. Next on the list of gainers was Sindhu Bikash Bank Ltd which saw its share price rally by 5.17 percent. Meanwhile, share prices of Shrijana Finance Ltd and Nepal Seva Laghubitta Bittiya Sanstha Ltd also increased by 4 percent. Other top gaining stocks include Janaki Finance Ltd, Bank of Kathmandu Ltd and Arun Valley Hydropower Development Company Ltd.
On the other hand, share price of Panchakanya Mai Hydropower Ltd fell by 5 percent on its first trading day. The scrip, which opened trading at Rs 144 per share, closed the day at Rs 136 per unit. Likewise, Soaltee Hotel Ltd and Himalayan Distillery Ltd skidded by over 2 percent each. Likewise, other hydro sector stocks including Dibyashwori Hydropower Ltd and Sanima Mai Hydropower Ltd tumbled almost 2 percent on the day.
On the news, Buddha Air Pvt Ltd has announced that it will go public and issue shares to general public after more than 20 years of operation as a private company. The airline carrier is bound to be the first of its kind to list stocks in the national exchange following its plan to float 70 percent shares to the public.
ARKS technical analysis indicates the market posting firm gain on the day. As a result, the index has attempted a bounce back from the recent consolidation range. However, with the overall volume still on the lower side, long position can be taken only if the market manages to extend gains with significant market activity in the forthcoming sessions.
Source: My Republica