Financial Stocks Fronted Nepse Downhill

Jamb Daily News Service
Nepal Stock Exchange sagged down for second day in a row on Wednesday primarily led by financial stocks. Standard Chartered Bank (Rs. 3564, -10%) closed its book from 6th Oct. to 4th Nov. 09 for the purpose of having its Annual General Meeting on 4th Nov. 09. SCB, one of the leading commercial banks with spurring profit has proposed 50 % cash and 50% stock dividend to its shareholders. After week long Dashain holiday, Nepse had surged for consecutive two days however the gains were capped by two regular slumps in preceding days after SCB's book close.
The benchmark Nepse index plummets 5.32 points or 0.87 percent to 607.86, following yesterday's nosedived of 23.69 points or 3.72 percent. Nepali stock market is moving through deviant slump for months hammered by several gloomy news. Moreover, series of off-putting news as, ambiguous understanding of paid up capital provision on Monetary policies, floating of promoters share in the market, listing of dividend and right shares augmenting shares outstanding amid growing turmoil within political parties dented the growth of Stock market. However, fair profits by companies along with dividend declaration has provided hope for stock uphill, but investors were less concerned on profits and were throwing selling orders.
Dragged down in scrip prices of most of the financial stocks smashed the Sensitive index to 153.66, losing 2.14 points or 1.37 percent. 78 scrip Sensex consist, 14 commercial banks, 37 finance companies, 15 development bank, 10 insurance companies and one each from hydropower and manufacturing companies. However, float Index an indicator of performance of ordinary shares in the market was up 1.50 points to 58.18.
Commercial banks which commands the titanic volume of trade at Nepal Stock Exchange plummets 11.38 points or 1.88 percent to 592.86, led by fall in price of SCB. Likewise, development bank slid 5.30 points or 0.80 percent to 661.24, finance dropped 0.51 points. However, rise in share price of Chilime Hydropower (Rs. 1046, +Rs. 21) escorted the hydro index to 821.57 adding 6.80 points , insurance index put on diminutive of 0.49 points while others added 1.18 points as price of Nepal Telecom increased by Rs. 2 to Rs. 550.
Merely 66 companies registered their presence in the secondary market with 25 gainers and 34 losers. The A-D ratio was maintained at 0.74. All in all 152892 shares traded today via 1059 transactions. Moreover, Rs. 69759919 turnover was realized along with Rs.426176.76 million market capitalizations. Nepal Bangladesh Bank accounted for huge turnover of Rs. 14,748,350 followed by Citizens Bank's Rs. 5,921,130 and SCB's Rs. 5,432,210. Yesterday, 163259 shares traded today via 695 transactions amounting to Rs. 60717850 turnover along with Rs.429904.86 million market capitalizations.
The top five standouts of the day are NMBF(4.49%), PFL( 3.8%), LGIL( 3.78%), KMBF( 2.48%), SIL(2.29%). Whereas, GFCLPO(-48.61%), SCB( -10%), NDEP( -5.67%), LFLC( -3.91%), HGI( -3.85%). comprised of the top five losers.