Banking stocks show resilience as Nepse struggles to recover
Summary
Banking stocks are holding up better than the broader Nepse index, even as both face key resistance levels. Brokers say improved bank profits and steady investor interest are supporting the sector, while political uncertainty is keeping the wider market cautious.
Key Points
- Nepse has repeatedly failed to break above 2,700, while the banking sub-index is struggling around the 1,600 mark.
- Brokers say banking stocks remain attractive because banks have reported stronger first-quarter profits and better loan recovery.
- Commercial banks accounted for about 27 percent of turnover over the past five trading sessions, though their share fell to 16 percent on Wednesday.
- Technical indicators show Nepse in a bearish longer-term trend, while the banking sub-index remains in a relatively bullish position.
