Himalayan Bank's expansion plans

Himalayan Bank plans to install 10 ATM terminals and three branches in the next seven months of the current fiscal year. The bank has already established three branches with an ATM each at Gorkha and at Satdobato and Kalanki in Kathmandu. Currently, the bank has 33 branches and 53 ATM terminals across the country. The bank further plans to issue EMV debit and credit cards soon. Similarly, the 18th annual general meeting (AGM) of Himalayan Bank on Wednesday endorsed issuing 11.84 percent cash dividend and 25 percent bonus shares to its shareholders. Following the distribution of 25 percent bonus amounting to Rs 783.78 million, the bank's paid-up capital will reach Rs 2 billion.

The bank posted a net profit of Rs 508.79 million in 2009-10. During the review period, the bank's deposit base and lending portfolio amounted to Rs 37.61 billion and Rs 29.12 billion respectively. The deposit base and lending portfolio have witnessed a growth of 8.44 percent and 14.12 percent respectively against the previous fiscal year. However, the bank's non-performing loans in the review period have gone up to 3.52 percent, which it plans to lower to 3 percent during 2010-11. Meanwhile, the deposit base and lending portfolio have climbed to Rs 39.46 billion and Rs 32.53 billion respectively in the first five months of the current fiscal year. Likewise, the operating profit reached Rs 574.85 million.

Source:
ekantipur

Market hits lowest point since May 2007

The NEPSE index(-5.09%) witnessed a sharp decline throughout the week with the benchmark index closing at 534.32 points, the lowest index level since May 27, 2007. The index was pulled down primarily by readjustments in the share prices of various companies post book closures for rights and bonus shares and cash dividends. In addition, the IPOs of Kasthamandap Development Bank and Pathibara Development Bank lured investors away from the secondary market. 

The Commercial Banking sub-index (-7.16%) was unable to sustain its ascent from the previous week, mainly due to readjustment in the share prices of Himalayan Bank (-Rs 457) and the book closure of DCBL Bank (+Rs 1) for its 5% bonus shares. The Finance sector (-5.80%) also took a big dip as Reliable Finance (-Rs 55) closed its books for 20% bonus shares and 10% cash dividends, and International Leasing and Finance (-Rs 291) did the same for 1:2.1 rights shares. Despite significant gains posted by Narayani Development Bank (-Rs 24) and Excel Development Bank (+Rs 2), the Development Bank sector (-5.43%) failed to impress as the stocks of a majority of the companies slid. Depreciation in the stock value of Chilime Hydropower (-Rs 25) hit the Hydropower sector. Similarly, the Insurance sector (-2.38%) also declined because of the price of Nepal Life Insurance (-Rs 84). Similarly, a fall in the share price of Nepal Telecom Company (-Rs 3) ruled out an uptrend in the Others sub-index (-0.58%).

To boost investor confidence, NRB announced it is injecting an additional Rs 3 billion into the market to ease the liquidity crunch. The central bank has also extended the timeframe to mid-April 2011 for commercial banks to raise their paid- up capital to Rs 2 billion. Prabhu Finance (-Rs 10) and Premier Finance (+Rs 6) are distributing 10.53% cash dividends and 1:1 rights shares respectively. NMB Bank (-Rs 17) which listed 53,586 rights shares confirmed that 19% of its promoter shares will be converted into ordinary shares. Nepal Investment Bank (-Rs 60) became the first bank in Nepal to receive an ´A´ rating from the Indian Credit Rating Agency (ICRA). Arun Valley Hydropower, Excel Development Bank and Crystal Finance Limited were listed on the stock exchange this week. Guheshwori Merchant and Finance (-Rs 16) announced 2% cash dividends along with 10% bonus shares. With IPOs and book closures of several companies lined up along with the divestment of promoter shares into ordinary by several major companies, no sign of an imminent reversal is apparent.

REPUBLICA 

Weekly Update

Nepal Stock Exchange tumbles this week primarily weighed by book closure on Himalayan Bank and International Leasing & Finance Company. Likewise, political collide led investor's worry to new height and rigid rules and regulation on stock market dampened the outlook to the ground. Taking into account of all the disappointing news, the benchmark Nepse index slump to more than 30 months low to 534.32 points down 27.79 points or 5 percent.

"Book closure of many companies have diminished the Nepse index to this level along with other key off-putting news and still there are key companies to close its book and lots of awful happening in near term, hence Nepse index will pull back to ground level in near term" said, Bijay Kumar Shrestha, an investors in the stock market.

There was strong wind behind the banking index that dropped 36.67 points or 6.80 percent to 502.19 at the closing session of week in comparison to Sunday's close. Similarly, finance index slump down 30.45 points or 5.12 percent to close at 564.63. ILFC (Rs. 219, -54.38%) turn out to be the biggest decliner on price adjustment after book closure date followed by Standard Finance (STFL, Rs. 237, -8.85) and Reliable Finance (RIBSL, Rs. 640, -8.57%). Development bank edge down 34.46 points or 5.52 percent to 589.93 fronted by loss in scrip price of Clean Energy Development Bank (CEDBL, 660, -8.97%), Vibor Bikash Bank (VBBL, Rs. 348, -7.69%) and so on. Hydro was down 9.58 points or 1.18 percent, insurance rolled down 15.76 points while others diminished 7.04 and trading plummets 10.02 points.

Stock analyst believed that "New floating of shares in the form of right share, bonus share and initial public offering amid chaotic political and economical environment has haunted the stock market growth."

Hefty decline in scrip price of most of the financial companies triggered domestic blue chips or sensitive index to close at 131.51 subtracting 9.16 points or 6.52 percent. Sensex is heavily loaded with financial companies as 14 commercial banks, 37 finance companies, 15 development bank, 10 insurance companies and one each from hydropower and manufacturing companies are included in sensitive index. Similarly, float Index an indicator of performance of ordinary shares in the market rolled down 2.58 points to 50.96.

Total of 91 companies registered their presence in the secondary market over this week. Losers overshadowed the market as 52 companies lost their price and only 12 companies advanced. All in all 562048 shares traded over the week for Rs. 276,846,822 turnovers along with Rs. 1,997,955.71 million market capitalizations.

Bearish regime on tough hold

The downward spiral at home equity market carries on with a further slump on Wednesday making it total of sixth consecutive decline. The market retraction was triggered by almost all of the sectors fronted by banking and insurance stocks. The benchmark Nepse index plummets 5.40 points or 0.91 percent to close at 585.04, its lowest close for more than 28 months.

Today, the market characterized with selling pressure, falling prices, low turnover and feeble investor confidence, said Pramod Karki, an investor in the stock market. Declining stocks outpaced more than twofold the advancing ones with 15 gainers and 42 losers at three hours trade where volume came to thinner of Rs. 30385763 compared to Rs. 53209728 turnover at the same time Tuesday.

Dragged down in scrip prices of most of the financial stocks smashed the Sensitive index to 147.06, losing 1.41 points or 0.95 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 down 0.39 points to 56.06.

Commercial banks experience the huge selling pressure that led its index to topple 7.60 points or 1.33 percent to 563.63. Citizens Bank (O: 683, H: 670, L: 635, C: 635), Himalayan Bank (O: 1480, H: 1488, L: 1425, C: 1430) plummets along with key banking stocks asStandard Chartered (-Rs. 51), Nabil Bank (-Rs. 31), Nepal SBI (-Rs. 10) along with others. Finance dropped down 2.90 points to 617.31 and insurance slid 1.31 points to end at 606.07.

Dragged down in scrip price of Nepal Telecom (Rs. 535, -Rs. 5) led others index to subtract 11.75 points or 1.84 percent. However, development bank rose marginal of 0.59 points to 647.80 and hydro edge up 6.02 points on positive demand of Chilime Hydropower (O: 1060, H: 1075, L: 1060, C: 1075).

Merely 63 companies registered their presence in the secondary market maintaining A-D ratio at 0.36. All in all 54727 shares traded today via 738 transactions to Rs. 30385763 turnover along with Rs.412370.06 million market capitalizations.

The top five standouts of the day are MFCL(9.89%), BLDBL( 5.56%), GFL( 4.44%), PRFL( 3.7%), RBS(1.99%).Whereas, CZBIL(-7.03%), MDBL(-3.75%), AFL( -3.58%), HBL( -3.38%), GFLK( -3.34%). comprised of the top five losers.

Himalayan Bank Ltd has 44 ATMs

KATHMANDU: Himalayan Bank Ltd (HBL) on Saturday opened its ATM counters at Durbar Marg, Putalisadak, Maitidevi, Chetrapati and Damak. According to the bank, with the five additional ATMs it has a 44-ATM network. The bank plans to open 15 more ATMs within the current fiscal year.
— HNS