IME opens 20th branch

IME Financial Institution inaugurated its 20th branch at Chapagaun in Lalitpur on Tuesday. Chairperson of the institution, Hemraj Dhakal, and Lalitpur CDO Ratna Rajya Pandey jointly inaugurated the branch on the occasion of its sixth anniversary. Issuing a press statement, the institution said it was providing banking services 365 days a year and also providing free debit card to its customers. The institution had earned Rs 914 million as net profit in fiscal year 2009/10.

Source:
myrepublica

IME opens ATM at Chabahil

IME Financial Institution has opened an ATM counter at Chabahil, Kathmandu. The new ATM counter was inaugurated by its chairman Hem Raj Dhakal. With this machine, IME now has seven ATMs across the country. It has plans to add four more ATMs within this fiscal year.

Nabil, IMEFI book closure drags Nepse down

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KATHMANDU, With the book closure a cutoff date for transferring shares for the benefit of cash dividend and bonus shares of Nabil Bank and IME Financial Institution (IMEFI), Nepal Stock Exchange (Nepse) index dipped by 27.42 points to close at 630.11 points on Tuesday.
The book closure of these two financial institutions further pulled down the benchmark index, already suffering due to rumor of possible arrival of promoters´ shares in the country´s sole secondary market.
“Investors rushed to sell off their shares of Nabil Bank and IMEFI, making investors shy away from buying those due to book closure from Tuesday,” Nanda Kishore Mundada, president of Nepal Stock Brokers´ Association, told myrepublica.com.
Nabil Bank has announced a cash dividend of Rs 35 per share cash and 50 percent bonus share, while the IMEFI has announced 20 percent bonus shares to its share holders.
With the announcement of book closure, the share price of Nabil Bank, a heavy weight in Banking group, saw its share price down by Rs 1,599 to close at Rs 2,652.
Banking group, which command significant influence in the secondary market, suffered a decline of a whopping 47.2 points to close at 626.31 points. The decline was contributed by the drop in share prices of major banks, including Nabil, Standard Chartered, Everest Bank and Bank of Kathmandu, during Tuesday´s trading.
Similarly, the sub-indices of Development Bank group and Hydropower group also lost 7.98 points and 0.68 points to close at 679.75 points and 862.91 respectively.
With the sharp fall in the share prices of major finance companies, including IMEFI, ICFC Bittiya Sanstha and Prudential Bittiya Sanstha, the sub-index of Finance Company group faced a decline of 6.79 points to close at 645.77 points. The Insurance group also saw its sub-index drop by 0.18 points to close at 628.84 points.
Total turnover at the end of Tuesday´s session reached Rs 6.89 million, with 121,578 units of shares and 62 scrips changing hands through 1,101 transactions. Total market capitalization stood at Rs 438.37 billion.

Turnaround on the horizon as Share market enters oversell zone

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The Nepse index (-3.10%) touched a three month low of 654.63 points on Tuesday, before closing at 660.40 points, as investors remained concerned over the supply impact of the conversion of 19% promoters´ shares. However, the current downtrend in the market is fundamentally unjustified, and the supply pressure has been overestimated.
Finance Companies were the key players in the market. Prudential Bittiya Sanstha (+Rs 37) which is closing its book for a 1:2 right issue on September 9 was the highest gainer followed by Bhajuratna Finance (+Rs 12) and Everest Finance (+Rs 28). However, the big losses of Guheshwori Merchant & Banking Finance (-Rs 139) whose shares traded for the first time since the issuance of 18% bonus shares and World Merchant Banking & Finance (-Rs 75) pulled down the Finance sub-index(-1.39%). The rest of the active sectors too traded in the red, with Commercial Banks (-4.10%) suffering the steepest decline as Bank of Kathmandu (-Rs 141) and DCBL Bank (-Rs 19) recorded the biggest losses in the sector. Development Banks (-2.50%) followed suit with Siddhartha Development Bank (-Rs 33) falling the most. Similarly, Hydropower sub-index (-2.07%) also declined because of the fall in share prices of Butwal Hydropower (-Rs 5). Although Lumbini General Insurance (+Rs 12) posted one of the highest gains of the week, the losses in the prices of the majority of the insurance companies contributed to the overall decline of the Insurance sub-index (-0.59%). Similarly, the depreciation of Nepal Telecom´s (-Rs 11) stock price dragged down the ´Others´ index (-1.78%).
Among other news, IME Financial Institution declared 1:3 right shares, and Sunrise Bank announced the distribution of its IPO. Additionally, Birgunj Finance and Goodwill Finance announced their book closure dates for 1:3.92 right (on September 7) shares and 1:1.5 right shares (on September 15) respectively. Business Development Bank also announced book closure for 1:2.1 right shares on September 14. The market attempted to recover on Wednesday by gaining 5.77 points. Technical analysis indicates that the market is currently in an oversell state and might have reached the threshold, in which case a slight uptrend can be anticipated next week. However, the strength of the uptrend remains uncertain due to regulation risks still lurking. The total turnover of the week amounted to Rs 34,54,33,241, with a 15.78% decrease in the average daily volume.