Appointment of new stock brokers faces fresh setback

It has already been three years since the attempt for adding stockbrokers in the capital market started. However, the process doesn't seem to be completed any time soon. The process has been stuck in the Securities Board of Nepal (SEBON) after the Nepal stock Exchange recommended 34 names of prospective stockbrokers. SEBON, the capital market regulator, will have to select the final 27 names.

The process prolonged after SEBON received complaints against around five prospective stockbrokers. "We are probing on the basis of complaints," said Surbir Poudel, chairman of SEBON. The recommended names against whom the complaints have been filed are charged of being involved in the companies listed in the stock market. One of the eligibility criterions for the potential stockbrokers was that they should not have been involved in any company listed in the stock market. Proprietor of one of the prospective stockbrokers has been charged of working in SEBON itself. "It will take some time to take final decision," said Poudel. "We will have to explore documents."

The board will take a final decision itself only if all the issues become clear. "Otherwise, we will return the recommended names to NEPSE for review," said Poudel. SEBON can remove the recommended names from the list, if the allegations proved to be true. "If NEPSE is found to be involved in irregularities, we will take action against it as well," said Poudel. If the complaints couldn't be proved and the cases settle, people will again be given another chance to file complaints against the recommended names.

With the high possibilities of business growth amid growing number of companies, investors and shareholders and increased market capitalisation, a lot number firms have been interested in stockbrokerage business. Currently, there are 23 stockbrokers, whose number had actually decreased from initial 31, despite the growth of the capital market over the last one-and-a-half decades after the establishment of NEPSE.

Of the 34 companies recommended, a few of them have obtained equal marks. Determining the status of these firms will require some time. SEBON can select the companies through lucky draw or other measures. After the completion of the investigation, the board will allow the recommended firms to apply for licences. After they complete all the procedures, SEBON will give them some time for infrastructure development. It will then observe the condition of infrastructure and provided license.

The recommended stockbrokers say that attempts are being made to restrict them from getting licence. "Examination was taken on transparent manner," said a chief of a recommended firm. "Conspiracy is being hatched not to allow adding new stockbrokers and crate ground for conducting new round of examination." NEPSE had also received complaints against few prospective firms prior to recommending the names. Two firms, against whom the complaints were proved, were de-listed. The NEPSE investigation had revealed that people involved in both the firms were also involved in listed companies.


The process of adding new brokers has remained stagnant since 2007 after the Commission for Investigation of Abuse of Authority termed the process non-transparent. The Supreme Court gave a go ahead to the process a year ago, however, the process has not concluded yet.

CDS facilitates electronic share ownership

The Central Depository System regulation went into effect Wednesday paving the way for the establishment of CDS companies. The Securities Board of Nepal, which recently endorsed the regulation, will be implementing it. "With the opening of CDS companies, share ownership transfers will be done electronically instead of manually as is being done presently," said SEBON. As the CDS facilitates electronic record keeping of the data related to the listed companies and their stock besides the accounts of the shareholders, ownership transfer and share trading can be done in a flash.

Although the Nepal Stock Exchange automated trading on Aug. 24, 2007, the clearance and settlement of transactions are still being done manually. "If things go smoothly, the CDS company will come into full-fledged operation within this fiscal year," said Surbir Poudel. "It will not take much time as the process of establishing the company was progressing simultaneously with the CDS regulation." SEBON and NEPSE are working to establish the CDS system with the technical assistance of Central Depository Services India Limited. NEPSE will be a major stakeholder in the company along with the listed companies and security traders (merchant banks and stockbrokers). As per the regulation, the stock exchange, commercial banks, citizen investment trust, foreign institutional investors, non-banking financial institutions, depository participants and firms referred by SEBON with a minimum net worth of Rs. 200 million can hold shares in the CDS company. According to a NEPSE official, NEPSE has agreed in principle with eight prominent commercial banks and the Citizen Investment Trust to promote a CDS company. A draft of the memorandum of association and the articles of association of the proposed company has already been prepared, added the official.

Source:
ekantipur

OTC market yet to open account

In the Nepal Stock Exchange (Nepse), thousands of shares are traded daily, but the Over-The-Counter (OTC) market has yet not seen any trading till date. Similar is the fate of government and corporate bonds. OTC being an unorganised secondary market, it does not require the involvement of brokers. Thus in Nepal, Nepse facilitates the transfer of the rights of such OTC shares. The shares of companies that have been de-listed by Nepse, the share of small companies which are unable to meet Nepse's and its regulator SEBON's requirements, and the shares of banks and financial institutions (BFIs) which have issued their initial public offering (IPO) but not yet listed at the Nepse, can be traded over the counter. The shares of the companies, which were de-listed from secondary market, Nepse and are not fulfilling the criteria of Nepse, SEBON, Nepal Rastra Bank NRB and Insurance Board (IB) can be traded as OTC shares. Nepse so far has de-listed 43 companies; and most of the de-listed companies are virtually non-existent. As a result, their shares are also not in circulation. However, the general public is reluctant in buying the shares of the de-listed companies that are still operating, considering them highly risky. Besides, thousands of share-holders that have shares of the de-listed companies like Nepal Bank Ltd (NBL), which was de-listed from Nepse due to its poor financial condition, are not even aware that they can trade their shares. The share holders of the banks that have already distributed the shares through IPOs but not yet listed on the Nepse are simply not interested in over-the-counter transaction and prefer to hold the shares until they are listed on the stock exchange in the hope of getting a better return. "In some cases, companies themselves are not interested in selling their stocks, in retail, over-the-counter," Shambhu Pant, Nepse's spokesperson said. Similarly, in the last eight years, only a nominal number of corporate bonds and government bonds have been traded in the secondary market. "Public are not interested in buying the bonds from the secondary market, they will rather buy directly from the primary market or wait for a new bond to hit the market," spokesperson of Nepse said. "Likewise, government bonds are mostly bought by BFIs to fulfill their Statutory Liquidity Requirements (SLR) as directed by the central bank. Thus they hold the bonds and the general public also hold them as a safe investment tool," he said.

Source: tht

TCS may design Central Depository System (CDS) for Nepse

Nepse is more than likely to hand out the contract to design the software for much anticipated Central Depository System (CDS) to Tata Consultancy Services (TSC). "After the preparation of software, there will not be any further delay about starting CDS," informed Shambhu Pant, Nepse's acting deputy manager and spokesperson. "Nepal's CDS will be based largely on Indian Central Depository Services Ltd (CDSL), a sister concern of the Bombay stock Exchange (BSE) as we are undertaking this project under the financial and technical support of BSE," he added. The CDS is a new clearing and settlement system being used in stock exchanges abroad. Under the CDS, the current practice of holding and moving the scrip of quoted shares physically will be replaced by a safe and dependable computerized book entry system. When investors trade under the CDS, there will be no need for delivery and receipt of physical certificates. All the physical scrips of the companies listed on the stock exchange will be recorded centrally, and investors will have CDS accounts which will show their holdings. The seller's account will be debited and the buyer's account will be credited when shares are traded by the new system automatically as is practised by major stock exchanges the world over. "The implementation of CDS will do a great deal in encouraging the investors as there will be hassle-free and swift ownership transfer and instant liquidity," said Surbir Paudyal, Chairman of Securities Board of Nepal. The increase in volume and number of share transactions after the automation of Nepse had created demand for the establishment of CDS that offers safety and convenience compared to holding securities in physical form, enhances liquidity by instantaneous transfers and delays, thefts, interceptions and subsequent misuse of certificates eliminated. The implementation of CDS is supposed to be able to wipe out inconsistency and manipulation in stock trading and make the Nepali secondary market more transparent and a significant reduction in discrepancy rates is expected by Nepse. Meanwhile, the Nepse has started the process to take the exam for new brokers. The process to add new brokers has halted since long.

Source: tht

Face value of listed shares up four fold in five years

Face value of listed shares in Nepal Stock Exchange (Nepse) has jumped by four times in five years, thanks to the rise in the number of Initial Public Offerings (IPOs) and issues of rights and bonus shares by banks and financial institutions to raise their capital base. According to Nepse - the sole secondary market in the country, total face value -- paid up value of shares -- shot up to Rs 61.14 billion during the fiscal year 2008/09 from Rs 12.01 billion recorded in 2003/04. Similarly, the total number of listed shares in Nepse rose to 637.8 million units in fiscal year 2008/09 from Rs 243.5 million units recorded in 2006/07. Securities Board of Nepal (SEBON) - the capital market regulator -- had given permission to issue ordinary shares and rights shares worth Rs 8.56 billion to different companies till mid-March 2010. A total of 18 companies have been allowed to issue ordinary shares worth Rs 2.4 billion whereas 20 companies are permitted to issue rights shares worth Rs 6.52 billion. As of mid-March, 16 more companies have sought permission from SEBON to issue public shares worth Rs 6.31 billion and 12 companies have approached the capital market regulator for issuing rights shares worth Rs 409.4 million. Share analysts have suggested authorities concerned to raise the number of investors by expanding internet based trading system to deal with the increasing flow of shares in the secondary market. "We have to adopt modern technology in share trading so that more and more investors can be encouraged in share investment," said Nanda Kishore Mundada, president of Nepal Stock Brokers´ Association. He also suggested increasing foreign investment in the secondary market by attracting non-resident Nepalis and overseas investors. Investors have suggested authorities concerned to introduce a provision for easy and hassle free loan so as to encourage more investment in the secondary market, which has been flooded with new rights and bonus issues in recent years. "Rising volume of shares won´t be a problem in the market if there is guarantee of bank loans to invest in shares," said Nirmal Pradhan, a stock investor. Last year, 63 companies had received permission to issue ordinary and rights shares worth Rs 14.83 billion. As per the directives of Nepal Rastra Bank, banks and financial institutions must raise their paid-up capital base to Rs 2 billion by 2013/14.

Source: myrepublica.com

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.

Nepse edge up marginal on last day of week

Nepal Stock Exchange edge up slightly in a volatile session at the last session of week Thursday. The benchmark Nepse index added diminutive of 0.79 points or (+0.14%) to close at 563.01 after touching high of 566.5 in an intra-day trade. Yesterday, the home equity market was 2.76 points down to 562.22.

"Stock market sways in an out of negative terrain on the basis of demand and supply, our stock market is not an exception hence it moves accordingly, however there must be rational move on the basis of market sentiment and that rationality is lagging in our stock market", viewed an investors in the stock market.

Merely 60 companies registered their presence in the secondary market with 24 gainers and 26 losers. The A-D ratio was maintained at 0.92. All in all 326867 shares traded today via 845 transactions. Moreover, Rs. 70599876 turnover was realized along with Rs.411978.07 million market capitalizations. Yesterday, 56645 units of shares traded via 700 transactions amounting to Rs. 28296613 turnover along with Rs.411401.14 million market capitalizations.

Commercial bank index plummets marginal of 0.24 points or (-0.04%) to 540.94, finance slid 0.21 points to 599.42 followed by 4.66 points plummets in hydro sector. Likewise, insurance was down 0.19 points to 592.93 while development bank rose 0.82 points or (+0.13%) to 623.84 and others gained 5.87 points or 0.99 percent after felling in previous session.

Sensitive index, 78 scrip domestic blue chip ended losing 0.07 points or (-0.05%) to 141.32. Sensex consists, 14 commercial banks, 37 finance companies, 15 development bank, 10 insurance companies and one each from hydropower and manufacturing companies.

The top five standouts of the day are GFL(5.19%), EDBL( 3.64%), SBBL( 3.36%), NICB( 2.68%), AFL(2.27%). Whereas, KBLPO(-17.84%), NCCB( -4.5%), PFCL( -3.93%), CMBFPO( -2.91%), CEDBL( -2.77%). comprised of the top five losers.

NTC dragged Nepse down on thin turnover

The sole secondary market records a series of ups and down like playing a see-saw. This week Nepse index characterized by first day up, second day down, third day up and fourth day out on shabby investor's confidence triggered by political chaos in the nation. Amid the growing tension between the government and opposition party along with other grim news on micro and macroeconomic perspective, growth in Nepal stock exchanged is restricted. Investors are on dubious to spot the logical scrip price to demand or to sell at the contemporary period.

Today, Nepse index plunged down 2.76 points or (-0.49%) to close at 562.22 led by hefty fall in scrip price of heavy weigh Nepal Telecom(Rs. 505, -2.32%). The market slid on weak turnover of only Rs. 28.296 million, very thin than the average daily turnover of Rs. 100 million. Yesterday, Nepse was up 3.16 points.

Most of the sectoral indexes closed in a negative terrain with development bank sub-index as an exception. Others sectors that constitute scrip of NTC rolled down 14.09 points or (-2.32%) to 593.32 along with slightly downtick in banking and finance sub-index. Commercial bank sub-index declined marginal of 0.28 points or (-0.05%) to 541.18 while finance shed 0.13 points or (-0.02%) to close at 599.63. However, development bank surged 2.61 points or (+0.42%) to 623.02 while insurance and hydro sub-indexes remained unchanged.

Sensitive index or domestic blue chip that consists 78 scrip edge down 0.11 points or (-0.08%) to 141.39. Sensex consists, 14 commercial banks, 37 finance companies, 15 development bank, 10 insurance companies and one each from hydropower and manufacturing companies. Similarly, float Index an indicator of performance of ordinary shares in the market was down 0.07 points to 53.74.

Merely 52 companies registered their presence in the secondary market with 17 gainers and 26 losers. The A-D ratio was maintained at .65. All in all 56645 shares traded today via 700 transactions. Moreover, Rs. 28296613 turnover was realized along with Rs.411401.14 million market capitalizations.

The top five standouts of the day are GFL(8.65%), NABBC( 3.51%), PSDBL( 3.13%), SBI( 2.66%), GBL(2.06%). Whereas, NCCBPO(-28.42%),CBBL( -10.98%), NCMMF( -3.85%), MBL( -2.69%), NTC( -2.32%). comprised of the top five losers.

Benchmark Nepse lost 6.38 points

Kathmandu,16-Nov-09
Jamb Daily News Service

The vague and shabby stock market at home nation has again landed out of the green terrain getting back to its so called favorite red zone. The market downstairs has primarily been triggered by pessimism over the political clash as the threat of third phase protest from opposition party UCPN-Moist is sizzling on turmoil of consensus. Likewise, new regulation about the conversion of promoter's shares into ordinary shares has also played a vital role in prevailing negativity of the share market. At this scenario, investors are on dubious situation to trade in the market.

The benchmark Nepse index plunged down hefty of 6.38 points or (-1.13%) on Monday to 560.56 led by banking stocks. Yesterday, the market had surged diminutive of 1.08 points or 0.19 percent to 566.94.

The sectoral indexes lost across the board with the hydro sector as the exception. The downward spiral was fronted by others index (-10.57, -1.74%) as scrip price of Nepal Telecom performed poorly. Likewise, banking scrip that accounted the hefty trade volume in secondary market edge down 6.66 points or (-1.22%) to 538.07 fronted by weak demand in scrip of Kumari Bank (Rs. 540, -Rs. 42), Global Bank (Rs. 450, -Rs. 19), Bank of Kathmandu (Rs. 1440, -Rs. 60) along with other. Development bank was down 9.62 points or (1.54%) to 614.86, finance slid 1.59 points to 599.95 while hydro rose marginal of 1.35 points.

Today, International Leasing and Fin. Co. Ltd. announced it book closure for a day on 24th November 2009 (2066 Mangsir 9) for the purpose of issuing 1:2.1 right share, the BOD meeting of Siddhartha Bank (Rs. 704, +Rs. 24) proposed 15% bonus share as earlier decision of the board to provide 10% cash dividend was not approved by NRB. Similarly, the ninth Annual General Meeting of Kumari Bank held on Sunday declared 10 percent bonus shares and decided to redeem the existing promoter share to 51% by selling 19% of promoter's share to public.

Dragged down in scrip price of most of the financials stocks dented the Sensitive index. At the close of session, 78 scrip domestic blue chip slump 1.33 points or (-0.94%) to 140.62. Sensex consist 14 commercial banks, 37 finance companies, 15 development bank, 10 insurance companies and one each from hydropower and manufacturing companies. Similarly, float Index an indicator of performance of ordinary shares in the market lost 0.64 points to 53.53.

Merely 56 companies registered their presence in the secondary market with 13 gainers and 38 losers. The A-D ratio was maintained at 0.34. All in all 100476 shares traded today via 1042 transactions. Moreover, Rs. 56879894 turnover was realized along with Rs.411106.27 million market capitalizations. Yesterday, 85924 units' shares traded via 1077 transactions amounting to Rs. 40295008 turnover along with Rs.414856.82 million market capitalizations.

The top five standouts of the day are GFL(9.01%), ABBL( 4.44%), SBL( 3.53%), BLDBL( 3.45%), GFCL(3.39%). Whereas, KBL(-7.22%), ACEDBL( -5.32%), GDBNL( -4.95%), GBL( -4.05%), BOK( -4%). comprised of the top five losers.

Nepse returns to former bearish mode

KATHMANDU: The capital market took a bearish turn this week after a week of bullish trend. The Nepal Stock Exchange (Nepse) index was in a bearish trend since September except between October 30 and November 5. The index had reached 587.21 points after gaining 17.57 points last week. 

Between Novemvber 6 and 12, Nepse experienced downward trend -- losing 21.35 points. The trading floor opened at 587.21 points on Sunday which gradually fall to 565.86 points on Thursday. The biggest losers this week are the commercial banks. Their indices dropped by 30.29 points from 570.39 points to 540.10 points.

Shares of banks, finance companies and development banks fell this week. Nepse index of finance companies fell by 10.42 points close on the heels of development banks. The development banks’ index fell by 11.69 points to stop at 626.42 points. Hydropower sector index also went down by 13.99 points. Fall in major sectors reduced the float index size by 2.05 points.

Shares equal to Rs 311.16 million were traded this week in 5,408 transactions of 6,02,600 units. The trading amount was 4.66 per cent lower than the Rs 326.88 million of the previous week. Class ‘A’ companies trading occupied 54.90 per cent of trading, with Rs 171 million.

Prime Commercial Bank ranked top in amount.

Nepse floor trading status
Major five companies Trading in millions  
Prime Commercial Bank 27.01
Nepal SBI Bank 26.84
Standard Chartered 24.23
Vibor Development Bank 18.88
DCBL Bank 18.67

Himalayan News Service

End of Maoist protest buoyed stocks uphill

The local bourse that takes a trip of peak and trough for series of previous sessions has ended at green side again. After continuous five session uphill due to bottom fishing strategy, Nepse's optimistic press release, slightly loose margin lending policy by NRB and government's assurance to work in favor of stock market, Nepse slump down hefty in previous week discounting those noteworthy positive signals by UCPN-Maoist's fresh protest including SinhaDurbar Gherao and worry on floating of promoters shares in the market.

Amid the volatility and uncertainty, the secondary market has rebounds from aggressive red terrain to slight green side on Sunday led by banking and financial stocks. The end of second phase of Maoist's protest for a week has buoyed the investors' sentiments to demand for stock that were relatively cheaper on previous session due to anxious and turbulent environment. Consequently, at the closing bell the benchmark Nepse index added diminutive of 1.08 points or 0.19 percent to 566.94 in a volatile session though with low turnover and thinner units after plunging to low of 564 points.

"After the end of Maoist protest stock market ticked to higher note, this shows that investors are much more attentive to the political scenario of the nation amid other fundamentals" said Pritam Adhikari, who is currently employed in Investment Company of Nepal.

The three hour session trade in secondary market has brought cheers at investors' outlook who holds banking and finance scrip. Commercial bank index heaved up 4.63 points or 0.86 percent to 544.73 led by 8.32 percent surge in scrip price of Laxmi Bank (Rs. 612, +Rs. 47), 4.50 percent rise in share price of Machhapuchchhre Bank (Rs. 348, +Rs. 15) along with other key commercial banks, while finance added 3.41 points or 0.57 percent to 601.54 led by 7.77 percent rise in price of General Finance (Rs. 222, +Rs. 16).

Likewise, hydro sector rose 2.03 points or 0.25 percent, hotel was up 1.14 points and insurance settled unchanged. However, it seems that the shareholders of development bank (-1.94, -0.31%) and others (-10.57, -1.71%) have to wait for another session for a positive note in these sectors.

The uptick in demand of key commercial bank and finance companies led domestic blue chip or sensitive index to close at 141.95 adding 1.25 points or 0.89 percent. 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 was up 0.29 points to 54.20.

Merely 59 companies registered their presence in the secondary market with 27 gainers and 22 losers. The A-D ratio was maintained at 1.23. All in all 85924 shares traded today via 1077 transactions. Moreover, Rs. 40295008 turnover was realized along with Rs.414856.82 million market capitalizations.

The top five standouts of the day are LBL(8.32%), GFL( 7.77%), MBL( 4.5%), STFL( 4.37%), NHPC(3.95%). Whereas, IDBL(-5.68%), ABBL( -5.43%), MFCL( -3.64%), HBL( -1.92%), DCBL( -1.91%). comprised of the top five losers.

Nepse rebounds: Investors cheers loud

Finally, the hope rebounds in home equity market even with the diminutive surge. After eighth consecutive plunge, Nepse bounce back with spurring gains amid the caution over political dispute and weak investor's sentiment. The benchmark index added marginal of 0.21 points or 0.04 percent to close at 567.27 on Monday, discounting bearish crawl in previous sessions.

"I am glad Nepse rose today, even though it rose with fewer points it has break the declining trend" said Shankar Agrawal, an investor in secondary market.

Banking scrip plays an eminent role for the secondary market's up leg with a motivating gain of 3.04 points or 0.57 percent to 538.56 after nonstop slide. However, the gains were restricted by hefty decline in hydro by 22.79 points or 2.75 percent to 806.30, followed by 6.50 points plummets in development bank to 632.80. Finance slid 2.55 points to 604.33; others edge down 1.17 points to 623.88 while insurance remained unchanged.

The slight uptick in demand of key commercial bank led domestic blue chip or sensitive index to drop maximum points amid the hefty decline in development bank and hydro sector. 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. Sensitive index closed at 140.88 down 0.16 points or 0.11 percent. However, float Index an indicator of performance of ordinary shares in the market rose 0.06 points to 54.18.

Merely 55 companies registered their presence in the secondary market with 22 gainers and 25 losers. The A-D ratio was maintained at .88. All in all 77843 shares traded today via 734 transactions. Moreover, Rs. 52874530 turnover was realized along with Rs.399841.82 million market capitalizations. Yesterday, 219125 units' shares traded today via 877 transactions to Rs. 84204608 turnover along with Rs.399699.38 million market capitalizations.

The top five standouts of the day are LUBL(8%), BOK( 4.84%), NBB( 4.78%), KIST( 4.53%), STFL(4.33%). Whereas, ACEDBL(-7.53%), PRFL( -7.27%), CHCL( -5.95%), PSDBL( -5.8%), ILFC( -4.84%). comprised of the top five losers.

Nepse nose leap down to floor

Investors stampeded to sell at the same time led the scrip prices in a downward spiral at Nepal Stock Exchange. The sole secondary market is running out of hope on dreary investors' confidence. After Tihar holiday, Nepse leap down to floor for all trading sessions which indicates the weak sentiments prevailed among the investors on various grim news floated around the stock market. Today, the benchmark Nepse index rolled down 11.13 points or 1.92 percent to 567.06, its lowest close since 19th June 2009 (567.28 points).

Floating of new shares after right and bonus issues along with IPOs has increased the supply pressure in the market. On the other, declaration of street protest by opposition party U-CPNL (Moist) has dented the hope of peace and security and investment atmosphere nationwide and stock market is no more exception.

Better than expected earnings and encouraging dividends failed to provide the glimmer of hope to boost the market sentiments and now the question is lingering in everyone's mind is, why the market is plunging down ? and how and when will be market budge up to sun shine?

The shabby investors drew their hands from most of the scrip to lend fright situation in most of the secotral indices. Commercial banks, mostly traded scrip at sole secondary market plummet 16.67 points or 3.02 percent to 535.52. Machapuchchhre Bank (Rs. 305, -9.76%), Global Bank (Rs. 458, -8.40%), Nepal Investment Bank (Rs. 778, -7.38) were the biggest losers in commercial banks including key banks as Standard Chartered (Rs. 3500, -Rs. 83), Nabil Bank (Rs. 2646, -Rs. 54), Bank of Kathmandu (Rs. 1445, -Rs. 70) and so on.

Likewise, development bank slid 7.51 points or 1.16 percent to 639.30 fronted by loss in share price of Sanima Bikas Bank (Rs. 530, -3.64%) and Infrastructure Development Bank (Rs. 418, -3.24%). Finance lost 7.32 points or 1.19 percent to 606.88, while dropped down in share price of Nepal Telecom led others index to retreat by 3.52 points or 0.56 percent. However, insurance rose diminutive of 0.05 points to 606.35 and hydro remained unchanged.

"Everyone knows scrip prices at secondary market has already slid too much yet investors are selling on that low price, which points out the market is ruling out by depressing outlook of investors rather than any fundamentals of companies", said Nilesh Shakya (an investor in stock market).

Sensitive index, 78 scrip domestic blue chip ended losing 3.53 points or (-2.44%) to close at 141.04 as most of the scrip price traded below previous close. Sensex consists, 14 commercial banks, 37 finance companies, 15 development bank, 10 insurance companies and one each from hydropower and manufacturing companies. Similarly, float Index an indicator of performance of ordinary shares in the market fell 1.14 points to 54.12.

Merely 62 companies registered their presence in the secondary market with 7 gainers and 48 losers.The A-D ratio was maintained at .15. All in all 219125 shares traded today via 877 transactions. Moreover, Rs. 84204608 turnover was realized along with Rs.399699.38 million market capitalization.

The top five standouts of the day are PFCL(1.85%), PFL( 1.82%), LGIL( 1.55%), SBI( 1.2%), PSDBL(1.01%). Whereas, MBL(-9.76%), GBL( -8.4%), NIB( -7.38%), SBL( -6.07%), ILFC( -5.94%). comprised of the top five losers.

Weekly Update

Nepal Stock Exchange at this week was outshined by hefty supply pressure that led the sole secondary market end in deep red for entire session. Investors psychology turns to feeble and propped up with selling tuned retracted the index below the psychological mark of 600 in the first day of week, there after crafted downward ladder to close at worst for more than 28 months.

The benchmark index initiate with downcast and turn down to negative terrain throughout the week. Nepse lost 21.24 points for the week closing at 578.19 (Thursday) in comparison to Sunday's close of 599.43.

The passive performance of stock market in recent days has been buoyed by fragile investors' outlook on political and economical condition of nation backed by floating of new shares in the market through right shares, bonus shares and Initial public offering. Likewise, hard hitting rules on margin lending, high interest rate for loan against share, passive economy, high inflation and world recession has kept its possession hard by any means to cripple the stock market.

Between all this gloomy news, companies are providing fair dividends to the shareholders but this reward yet is not enough to boost up the gains in stocks. Therefore, at contemporary phase the market is not running on fundamentals or technical strength but with the investors' sentiment which is absolutely feeble. Moreover, political discrepancies along with fresh protest declaration by opposition party U-CPNL (moist) has definitely created an additional leg down in the market.

Dragged down in scrip prices of most of the financial stocks smashed the Sensitive index to 144.57, losing 7.01 points. 78 scrip Sensex consist, 14 commercial banks, 37 finance companies, 15 development bank, 10 insurance companies and one each from hydropower and manufacturing companies. Likewise, float Index an indicator of performance of ordinary shares in the market was down up 2.18 points to 56.26 points.

Commercial bank which commands the titanic volume of trade at Nepal Stock Exchange plummets hefty of 33.51 points to 552.19 in comparison to Sunday's close of 585.84. Likewise, development bank slid 2.55 points or to 646.81, finance dropped 10.72 points, hydro plummets 4.12 points and insurance was down 2.60 points in comparison to Sunday's close. Similarly, other decline 5.88 points, hotel slid 1.14 points however, manufacturing sector rose diminutive of 4.80 points.

Merely 95 companies registered their presence in the secondary market over this week. All in all 492389 shares traded via 4544 transaction over the week. Moreover, Rs. 276356647 turnovers were realized along with Rs. 407,538.89 million market capitalizations.

NEPSE Index dropping

KATHMANDU: Nepse on Tuesday lost 4.89 points to close at 590.44 points. The single loser — Everest Bank — lost Rs 116 per unit share pulling the bank sub-group down by 8.03 points to 571.23 points. Nepse saw 93,511-unit shares getting traded on the third day this week. 

On the second day, Nepse dropped by 4.1 points to close at 595.33 points. All market propellers, commercial and development banks, finance companies, and hydropower companies, plunged, pulling Nepse down.

— HNS

Nepse flooded with primary shares

KATHMANDU: The secondary market is flooded with shares as today on a single day it listed 29.3-million-unit of primary shares of three financial institutions — two commercial banks and one development bank.
Sunrise Bank and Prime Bank listed their 12.5-million-unit and 10-million-unit primary shares whereas Vibor Bikas Bank listed its 6.8-million unit primary shares.
With the three new financial institutions, the number of listed companies has also gone upto 163 in Nepal Stock Exchange (Nepse). According to Nespe, with the two additions, there are 23 commercial banks in banks subgroup — the key market propeller. The 23 commercial banks have listed 281.56-million-unit shares.
Similarly, with one new entrance in the development banks sub-group the number of listed development banks has touched 30.
“Vibor Bikas Bank floated 26,52,000-unit shares worth Rs 265.20 million on June 10 for the public including its staff. It listed a total of 6.8 million-unit shares worth Rs 680 million including 41,48,000-unit promoter shares today.
The 30 development banks have listed 66.34-million-unit shares at Nepse that is dominated by banks and financial institutions. They have over 85 per cent of the total trading. According to rule, shares of listed companies will be traded after a week of listing.

Himalayan News Service

Down-tick prolongs: NEPSE plunged 4.89 points

The retreation at Nepal stock exchange persists yet again allowing the shabby market to close at red zone for fifth day in a row. Investors are much more caution and anxious to know the spot motive behind the downhill, however not single but bundle of grim news has triggered the negative move of stock market. The benchmark Nepse index sagged down 4.89 points or 0.82 percent to 590.44 led by financial stocks.
Analyst viewed that, the rigid rules and regulation imposed by governing bodies at stock market has impede the growth supported by investors weak outlook on the political and economical milieu. Likewise, flow of new shares in the market as right shares, bonus shares has increased the supply side along with IPOs restricted the flow of investment in stock market.
Today, Prime Commercial Bank Ltd. with stock symbol PCBL has been listed along with Sunrise Bank Ltd. (SRBL) and Vibor Bikash Bank Ltd. (VBBL). 10000000 units shares of PCBL, 12500000 units shares of SRBL and 6800000 unit shares of VBBL has been listed today on consent of Nepal Stock Exchange and trading of all those banks will be started from 3 November 2009 (2066 Kartik 17). Likewise, from today Asian Life Insurance Company Ltd. has issued 1080000 units of shares (including 43200 units for its employees) to the general public at face value of Rs. 100.
The selling pressure mostly on financial stocks has triggered the downhill trend. Commercial banks which command the titanic volume of trade in daily trading hour fronted the declining rally losing 8.03 points or 1.39 percent to 571.23. Machhapuchchhre Bank (Rs. 351, -6.40%),Everest Bank (Rs. 1825, -5.98%), KIST Bank (Rs. 352, -4.86%), NICB (Rs. 817, -3.88%) along with key banks as Standard Chartered (-Rs 20), Nepal SBI (-Rs 4), Kumari Bank (-Rs 20) plummets in banking sectors. Likewise, development bank lost 0.67 points (-0.10%), finance slid 1.60 points (-0.26%) and insurance edge down 1.66 points or 0.27 percent. However, hydropower rose marginal of 0.71 points and others added 4.70 points on positive pricing of Nepal Telecom (Rs. 545, +0.74%).
Sensitive index, 78 scrip domestic blue chip ended losing 1.85 points or (-1.23%) to 148.47 as key financial scrip traded below previous close. Sensex consists, 14 commercial banks, 37 finance companies, 15 development bank, 10 insurance companies and one each from hydropower and manufacturing companies. Similarly, float Index an indicator of performance of ordinary shares in the market fell 0.49 points to 56.45.
Merely 69 companies registered their presence in the secondary market with 22 gainers and 35 losers. The A-D ratio was maintained at 0.63. All in all 93511 shares traded today via 1010 transactions. Moreover, Rs. 53209728 turnover was realized along with Rs.416176.55 million market capitalizations. Yesterday, Rs. 57064520 turnover was realized from 90370 units of shares traded along with Rs.419623.3 million market capitalizations
The top five standouts of the day are MFCL(9.85%), GFL( 6.3%), CIT( 3.84%), CZBIL( 3.48%), PSDBL(2.04%). Whereas, NEFL(-22.95%), MBL( -6.4%), EBL( -5.98%), KIST( -4.86%), NICB( -3.88%). comprised of the top five losers.

Inflation down to single digit in 15 months

27, Oct 2009
After staying at double digits for 15 months, inflation has slipped to single digit. The latest statistics of the Nepal Rastra Bank (NRB) show that inflation in mid-September stood at 9.7 percent. Consumer inflation remained at double digit throughout the last fiscal year. However, after reaching the high of 14.4 percent in January 2009, inflation has started to moderate slightly in the past few months. It was at 10.4 in mid-August. The current monetary policy has projected an inflation target of 7 percent for the current fiscal year.
The ease in inflation is due to drop in the prices of non-food items and services only. NRB data shows the index of non-food and services group rose only by 2.1 percent. However, the price of food and beverages has continued to go up. According to 2nd month price analysis of the NRB, the price index of food and beverages group has increased by 16.3 percent during the period. Despite the inflation coming down to single digit, the price rise of vegetable and fruits has affected the general consumers. The price index of vegetables and fruits has increased by whopping 43.5 percent during the review period. Last year, it had declined by 14.6 percent.
The price of sugar and sugar related products has also continued to rise. Same is the case with meat, fish and eggs as well as pulses. The price of meat, fish, eggs and pulses sub-groups has increased by 29 percent and 25.6 percent, respectively, compared to a corresponding rise of 14.5 percent and 23.7 percent in the same period last year. The index of the grains and cereal products sub-group also witnessed an increment of 5.8 percent compared to 23.8 percent increase in the same period of the previous year.
Among the non-food and services group, the price of tobacco and related products rose up by 17.0 percent compared to a rise of 12.7 percent during the same period last year. But the price index of transport and communication has declined by 8.7 percent against an increase of 23.1 percent during the same period last year. NRB data shows that the consumers of Tarai suffered the most due to price rise followed by consumers of Kathmandu valley. As per central bank's statistics, the price index of Tarai increased by 9.9 percent and of Kathmandu increased by 9.6 percent.
However, wholesale price inflation increased to 12.6 percent in the review period. The price of agricultural commodities and domestic manufactured commodities has increased by 29.7 percent and 4.6 percent, respectively in the review period as compared to 0.7 percent and 15.8 percent a year ago.
Source: ekantipur.com

Banking Blue Chips Demand on Spotlight

Nepal Stock Exchange slightly ticked to higher end on Wednesday, primarily led by banking scrip. The trading screen experienced pockets of green symbols for second day in a row after plunging down for previous five straight sessions. The modest scale of the day's surge suggested that investors are cautioned in demanding stocks from the market that has spent more time in reverse direction due to various weigh news. In a volatile session, the benchmark Nepse index settled at 599.50, yet below psychological level of 600, adding 0.70 points or 0.12 percent.
Declining stocks narrowly outpaced advancing ones with 26 gainers and 32 losers at three hours trade where volume came to lighter of Rs. 40159252 compared with Rs. 48828426 at the same time Monday. "Even though stock market endow with spurring gain after continuous tumble, it's not only complex but hoodwink to believe that market has got the opening start of the long rally on thinner trade like this" viewed market analyst.
Blue chips scrip from commercial banks as Standard Chartered (Rs. 3571, +Rs. 61), Nabil Bank (Rs. 2830, +Rs. 65), Bank of Kathmandu (Rs. 1605, +RS. 65), Everest Bank (Rs. 2206, +Rs. 6) along with other key banking stocks experienced higher share price to escort banking index to 584.29 putting on 4.54 points or 0.78 percent. Except BOK, named above banks has already declared dividends from the profit of fiscal year 2008/09. SCB declared 50% cash and 50% stock dividend, Nabil proposed 50% stock and 35% cash and EBL to give 30% stock and 30% cash dividend as a reward to shareholders from the profits.
Development bank index zoomed meager of 1.73 points or 0.27 percent to 653.51 on positive pricing of Pashupati Dev. Bank (Rs. 520, +5.05%), Sanima Dev. Bank (Rs. 570, +1.79%) along with others. However, hydro sector plummets hefty of 20.97 points or 2.51 percent to 813.59 triggered by downfall in price of Chilime Hydropower (Rs. 1023, -Rs. 57) and National Hydropower (Rs. 84, -Rs. 2). Finance declined 2 points to 626.43 along with 6.52 dropped down in insurance sector.
The puff up in demand of key commercial bank led domestic blue chip or sensitive index to close at 151.26 with surge of 0.71 points or 0.47 percent. 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 rose 0.23 points to 57.40.
Total of 67 companies performed trade in secondary market for 68145 units via 852 transactions maintaining A-D ratio at 0.81. The market capitalization for the day stood at Rs.422563.1 millions up from previous session's Rs. 422068.29 millions.

Jamb Daily News Service

Nepse surge diminutive: yet feeble to boost stocks

Jamb Daily News Service
Nepal stock exchange ascends minuscule on Tuesday though volume was light after retreating for fifth session in a row. Investors stampede to demand for banking scrip escorted the sole secondary market to settle at positive note, yet underneath the psychological point 600. The benchmark index added 0.43 points or 0.07 percent to 598.80 at the closing bell after plunging to intra-day low of 597 and hitting high of 600.20.
"Even though the market surge after long downhill rally, the key stuff to boost the market is yet beyond the clouds. The rise occurred today was the natural phenomenon of stock market fluctuation but not through rational investor confidence".
Key banking scrip as Standard Chartered (Rs. 3150, +Rs. 9), Everest Bank (RS. 2200, +Rs. 30) along with basket of scrip rose to guide the commercial bank index to 579.75, adding 1.14 points or 0.20 percent. However, downswing in price of Nabil Bank (Rs. 2765, -Rs. 34), Bank of Kathmandu (Rs. 1540, -RS. 40) capped the banking gains. Likewise, hydro sector which consist of three companies heaved up 7.23 points or 0.87 percent on price augment of Butwal Power (Rs. 960, +RS. 8) and National hydropower (Rs. 86, +Rs. 1). However, development bank lost 2.55 points or (-0.39%) to 651.78 and finance slid 2.58 points to 628.41. The biggest losers from development bank was Business Development Bank (Rs. 265, -5.36%) and from finance sector Royal Mer. Banking and Fin topped the chart with 3.88 percent decline to Rs. 452. Insurance and others indexes remained unchanged compared to previous session.
The slight uptick in demand of key commercial bank led domestic blue chip or sensitive index to close at 150.55 adding 0.02 points or 0.01 percent. 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 rose 0.03 points to 57.17.
Declining stocks narrowly outpaced advancing ones on the Nepal stock exchange where volume came to lighter of Rs. 48828426 compared with Rs. 172023758 at the same time Monday. Merely 63 companies registered their presence in the secondary market with 25 gainers and 26 losers. The A-D ratio was maintained at 0.96. All in all 78754 shares traded today via 821 transactions for Rs. 422068.29 million market capitalizations.
The top five standouts of the day are MFCL(6.79%), LUBL( 4.9%), LBL( 3.52%), KMBSL( 2.67%), MBL(1.89%). Whereas, NABILP(-26.73%),BDBL( -5.36%), RMBFI( -3.83%), PRFL( -3.7%), AEFL( -3.63%). comprised of the top five losers.