NEPSE down 0.77 point

The Nepal Stock Exchange (NEPSE) went back down Thursday dropping 0.77 points to close at 681.54. Thursday's trading session saw the banking sector, a major component of the secondary market, declining by 2.51 points while the finance sector lost 1.32 points. Among the leading sub-indices on NEPSE, the hydropower sector gained 7.12 points while the development bank sector, hotel sector and insurance sector increased by 4.54 points, 2.9 points and 0.2 point respectively. Total transactions on NEPSE reached Rs. 93.996 million with 130,129 units of shares being traded. Shares of 68 companies changed hands on NEPSE.Among the 22 commercial banks whose shares were traded on NEPSE on Thursday, the Bank of Kathmandu posted the biggest growth with its stock rising 76 points while Nabil Bank lost the most on the trading floor by shedding 100 points. Similarly, among the 15 development banks, Gurkha Development Bank witnessed the highest increase of 27 points while Ace Development Bank Limited lost 4 points.Among the 22 finance companies, World Merchant Bank Ltd was the highest gainer with an increase of 47 points.
Source: Kantipur

Nepse drops over low cash dividend

KATHMANDU, Aug 25: Announcement of nominal cash dividend by Nepal Investment Bank Ltd (NIBL) triggered further loss in already slowing Nepal Stock Exchange (Nepse) index. The Nepse, the indicator of investors´ confidence in stock market, shed 2.09 percent or 14.47 points to close at 678.87 points at the end of Tuesday´s trading. “Meager cash dividend of Rs 20 per share announced by NIBL has discouraged investors and spurred selling pressure in the secondary market on Tuesday. The announcement also sent negative message to investors of other companies,” Nanda Kishore Mundada, president of Nepal Stock Brokers Association told myrepublica.com. Price of NIBL´s per unit share dropped by 114 to Rs 1035 on Tuesday.Mundada also said rumor of Securities Board of Nepal (Sebon) permitting promoters to lower their equity participation by selling 19 percent of total shares also contributed to the decline. “If permission is given to sell promoter shares, number of share would be doubled in the secondary market, resulting in overflow of shares in the secondary market,” said Mundada.Banking group, a key trading group in stock market, saw its sub-index dropped by a whopping 23.42 points to close at 707.82 points. The slump in Banking group´s sub-index was contributed by the decline in share prices of major banks such as NIBL, Nabil, Standard Chartered and Kumari Bank. Similarly, Development Bank and Finance groups´ sub-indices also wend down by 0.58 points and 5.89 points to end at 703.15 points and 868.77 points respectively. Insurance and Others group also saw their sub-indices dip by 1.66 points and 8.22 points to close at 640.29 points and 649.72 points respectively.Total turnover of stocks declined to Rs 86. 36 million with 123,722 units of shares and 55 scripts being traded through 964 transactions during Monday´s trading. Total market capitalization also dropped to Rs 471.49 billion, down from Rs 481.55 billion recorded on Monday. - REPUBLICA

Imperial Finance Ltd posts profits

KATHMANDU: Imperial Finance Ltd during the fiscal year 2008-09 registered an operating profit of Rs 22 million. According to a press statement, the company posted a deposit of Rs 623.6 million and investment of Rs 558.7 million. — HNS

Caravan Savings first general meeting.

KATHMANDU: The first general meeting of Caravan Savings and Credit Co-operative Limited was held at Basundhara on August 15. Speaking at the programme, former vice-president of National Planning Commission Dr Shankar Sharma said, “The role of co-operatives will be very important as they are one of the three pillars of the country’s economic development.” During the programmme, 11 executive members were elected under the leadership of Uddhavraj Dhungel, president of the co-operative. — HNS

Banks, finance companies still not fully immune.

KATHMANDU: Domestic banks and financial institutions are not out of risk and are still vulnerable, opined Nepal Rastra Bank (NRB) governor Bijayanath Bhattarai."The central bank might add more disclosure requirements," he said talking to the newly elected committee of Society of Economic Journalists Nepal (Sejon) here today. Banks should be operated by prudent norms and should not merely wait for NRB directives, he opined adding that the capital base of banks should be sound. "Few but strong banks is the need of the hour rather than numerous and weak banks that have negative networth and poor Capital Adequacy Ratio (CAR)"
"If banks and financial institutions are not run according to prudent norms, the central bank will take action against them to safeguard depositors' money," Bhattarai, who joined the office after two years, said. "The central bank wil take punitive measures if they do not obey directives and reform themselves."
Since the money in banks and financial institutions is that of the depositors, they should be shielded. After the Nepal Development Bank (NDB) fiasco, the government has brought the deposite insurance programme. "Though there is no full-proof regulatory norm to save banks from failing, deposite insurance can save small depositors," Bhattarai said adding that the financial sector reform programme that has slowed down in the recvent years will also be expedited. - Himalayan News Service

5 finance institutions ready for merger

The merger of five financial institutions, which have been permitted by the Nepal Rastra Bank, has reached final stage.
Himchuli Development Bank of Pokhara, Mahalaxmi Finance of Birgunj, Butwal Finance of Butwal and Siddhartha Finance of Bhairahawa have been permitted to merge with each other.The financial institutions have applied for upgrade by presenting Rs 2.1 billion paid capital. All process for the merger has been completed and documents have been sent to NRB for final approval, said Himchuli Development Bank's chairman Sushil Raj Parajuli.
The details of all institutions have been received to issue rights shares for merger, he said. He said rights sharea will be issued soon and the merger process will complete by Dashain. Each of the institute will contribute Rs 420 million.
Kantipur report

Kaski Finance: Book Closure

Kaski Finance Ltd is closing its book on 28 Shrawan 2066 (12 Aug 2009) for issuance of 1:2 right share

Gorkha Finance: 4th Quarter Financial Report (2065/66)

Gorkha Finance Ltd.has posted Rs. 9.974 million net profit (unaudited figure) for the 4th quarter of fiscal year 2065/66

Central Finance: 4th Quarter Financial Report (2065/66)

Central Finance Co. Ltd. has posted Rs. 29.272 million net profit (unaudited figure) for the 4th quarter of fiscal year 2065/66

4th Quarter Financial Report (2065/66) : Swastik Merchant Finance

Swastik Merchant Finance Co.Ltd has posted Rs. 5.974 million net profit (unaudited figure) for the 4th quarter of fiscal year 2065/66.

4th Quarter Financial Report (2065/66) :Om Finance Ltd

Om Finance Ltd has posted Rs. 26.191 million net profit (unaudited figure) for the 4th quarter of fiscal year 2065/66.

Share Allotment Result of Crystal Finance.

The general shares of Crystal Finance Ltd. has been allotted on 27th July 2009 (2066 Shrawan 12). To check your allotment, then click here

Crystal Finance Ltd. had issued 210000 shares as initial public offering from 16th June 2009 to 19th June 2009 (2066 Ashad 2 to 2066 Ashad 5) at Rs. 100 per share. Crystal Shares were Oversubscribed nearly 25 times.According to the IPO Announcement Notice, the IPO release of 210,000 ordinary shares constituted only 30% of the total shares (Total: 7,00,000, Promoters: 70%, i.e. 7,90,000). According to its financial statement published along with the annoucement letter. The company made mere Rs. 29,96,000 profit in FY 062/063, while in FY 064/65 the profit rose to Rs. 1,07,08,000.

Nepal Express Finance Ltd in Pokhara

Nepal Express Finance Ltd established its branch office at Pokhara on Sunday. According to a press statement, compared to the fiscal year 2007-08 the bank got an increment of 140 per cent in its total deposit with a collection of Rs 351.7 billion in the fiscal year 2008-09. Acording to a press statement, the company registered a total operating profit of Rs 11.5 million — an increment of 238 per cent compared to the same period last year.

ICFC - sixth branch office

ICFC inaugurated its sixth branch office at Gongbu on Sunday. According to a press release, the company posted an operating profit of Rs 70 million during the fiscal year 2008—09. According to a press statement, in five years of its establishment the company has a deposit collection of Rs 1.53 billion and granted loan of Rs 1.41 billion.

Premier Finance Co. Ltd : Right Share Issue Date Extended

Premier Finance Co. Ltd. has extended its right share issue date upto 15th June 2009 (2066 Ashad 1).