Banks paid up to lift NEPSE into Dashain as hydropower traded two-way
Bank orders lifted offers into the holiday, while hydropower, with nearly half the day's money, was evenly matched.
The NEPSE index went into the Dashain break with a seventh straight gain on Friday, and the banks were the only large group that paid for it. Hydropower took nearly half the day's money but traded two-way. In the banks, orders lifted offers for most of the session and then eased into the close.
The index rose 8.23 points, or 0.31%, to 2,634.17, on turnover of Rs 4.88 arba, 2.7% above its 20-session median. The market is shut until Monday 26 October, 10 calendar days away. That makes Friday's tape the last read on whether the run into the holiday had conviction behind it.
Most of the money went into stocks that closed higher. They took 74.1% of turnover, and 174 stocks advanced against 91 that declined. Even so, buy-initiated trades made up only 49.2% of turnover, so the session was evenly matched. The index moved because of where orders paid up, not because of how much buying there was.
Banks paid, hydropower traded
Commercial banks rose 0.72%, the strongest move among the main sectors. Thirty-one banks closed higher and eight lower, 58.1% of the sector's turnover was buy-initiated, and trading was spread across the sector. Nepal Investment Mega Bank (NIMB) rose 3.36% on buy-initiated orders that paid up, though the pressure faded into the close. Agricultural Development Bank (ADBL) was 86.5% buy-initiated.
The same sector supplies the caveats. Kumari Bank (KBL), the second most traded bank, ended almost flat, and all of its largest prints were sell-initiated. Nepal Bank (NBL) traded distribution-style, and its bids were hit through the session.
Hydropower drew Rs 2.28 arba, or 46.7% of the day's turnover, and its index rose 0.52%. Only 47.8% of that money was buy-initiated. Ghalemdi Hydro (GHL), the most traded stock at Rs 20.49 crore, was the sector's clearest exception. It rose 2.27% on accumulation-style trading with buying that built into the close, and it finished 1.17% above its average price for the day. Green Ventures (GVL) and Api Power Company (API) both faded into the close, and all of API's largest prints were sell-initiated.
Where the pressure was
The losses were in insurance and finance. Himalayan Everest Insurance (HEI) fell 4.98% and Nepal Reinsurance Company (NRIC) fell 3.16%. Manjushree Finance (MFIL) fell 3% on distribution-style trading. It also printed the day's largest single trade, Rs 2.79 crore at Rs 779 a share, and together with ICFC it did most of the finance sector's trading.
Everest Colour (ECL) rose 7.47% on Rs 3.33 crore of turnover. The largest percentage gains, led by Chirkhwa Hydropower (CKHL), came on thin turnover.
The reading holds if the first session after the holiday keeps the index above Friday's low of 2,622.78, with bank demand that lasts into the close. A close below that level on a two-way tape would suggest the pre-holiday run was position-squaring rather than conviction. Markets are closed from 17 to 23 October for Dashain. The 6% RBBL debenture issue closes on 27 October. Mountain Energy Nepal (MEN) and Bindhyabasini Hydropower Development Company (BHDC) close their books for dividends on 27 October, and Barun Hydropower (BARUN) on 28 October.
For information only. Not investment advice.