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.

Standard Chartered Bank book closure hits Nepse

REPUBLICA
The market resumed trade this week after a week-long Dashain holiday. The first two days witnessed an uptrend in the market. However, the book closure of Standard Chartered Bank (-Rs 1,734) on October 6 for 50 percent cash dividend and 50 percent bonus shares made a massive impact on Nepse index (-4.15 percent) as the trading volume dropped by 36 percent.
The Commercial Banking sector saw a big fall (-6.69%). Nevertheless, Laxmi Bank (+Rs 69) which is distributing 7 percent bonus shares succeeded in posting one of the highest gains. BiratLaxmi Development Bank (+Rs 71) posted the highest gain of the week while Infrastructure Development Bank (-Rs.59) posted a big decline.
The Hydropower sector´s index (-1.36%) also slipped down as National Hydropower (-Rs 2) and Chilime Hydropower´s (-Rs 8) prices decreased.
Despite the huge fall in the market, the Finance sector (+0.23%) managed to climb up as prices of the shares of NIDC Capital Market (+Rs 100) and Pokhara Finance (+Rs 49) appreciated. Gorkha Finance´s Promoter Shares (-Rs 195) traded at a significant loss.
The insurance sector´s (+0.40%) index went up due to the increments in the share values of Nepal Insurance Company (+Rs21) and Lumbini General Insurance (+Rs 11). The index of ´Others´ went down due to a fallin the value of Nepal Telecom´s (-Rs 10).
Meanwhile, Nepal Rastra Bank is opening bids for 91-day Treasury Bills worth Rs 189 crore, 182-day Treasury Bills worth Rs 30 crore, 364-day Treasury Bills worth Rs 40 crore, 28-day Treasury Bills worth Rs 50 crore, and 91-day Treasury Bills worth Rs 80 crore.
Fewa Finance is auctioning its under-subscribed 13,195 units right shares. Lord Buddha Finance closed its right shares (2:1) on October 8.The market can be expected to witness downward trend with more book closures in offing next week.

NEPSE continues to slide

KATHMANDU, Aug 19 - The Nepal Stock Exchange (NEPSE) Tuesday fell by 0.66 point. All the sub-indices suffered a loss except for the development bank sector. The hydropower sector lost the most dropping 12.88 points followed by finance, banking and insurance.
The share market witnessed a total turnover of Rs. 91.39 million with 118,822 units of shares being traded. Shares of 67 companies changed hands on NEPSE.
Among the 22 commercial banks whose shares were traded on NEPSE on Tuesday, Everest Bank posted the biggest growth with its stock rising by 44 points while Standard Chartered Bank lost the most on the trading floor by shedding 73 points.
Similarly, among the 15 development banks, Swabhalambhan Bikas Bank witnessed the highest increase of 40 points.
Among the 25 finance companies, Kaski Finance was the highest loser shedding a whopping 570 points. The top five winners on NEPSE were Swabhalambhan Bikas Bank with a 6.06 percent rise in its stock price followed by World Merchant Bank, Machhapuchchhre Bank, Citizens Bank International and National Hydropower Company. - Kantipur Report