Nepal Telecom (NT) decides 35% cash dividend

The second annual general meeting (AGM) of Nepal Doorsanchar Company Ltd ¿ popularly known as Nepal Telecom (NT) ¿ has decided to distribute 35 per cent cash dividends to its shareholders here today. The company has, last fiscal year, registered Rs 10.18 billion net profit ¿ an increase by 31 per cent over last year's turnover, said the company. "The per share income has also increased to Rs 67.85 that is also an increase of 28 per cent," said the NT, which has been listed under the Class-A companies at the Nepal Stock Exchange (Nepse). "NT's teledensity has increased to 17.84 telephone lines per 100 persons," Sushil Ghimire, NT chairman said, addressing the shareholders. "We have extended our PSTN (land line) services in all the 75 districts headquarters," he said, adding that GSM and CDMA service of NT is also available across the country. Registered on 2060-10-22 under Company Act, 2053, the then Nepal Telecommunications Corporation (NTC) was dissolved and all assets and liabilities were transferred to Nepal Telecom (NT) with effect from April 13, 2004. The company had floated its shares under the divestment programme of the government and called the bid for its shares quoting Rs 600 minimum after adding Rs 500 premium to the face value of Rs 100 for each unit. However, investors have quoted a maximum of Rs 2,550 to the lowest of Rs 600 for a unit of share. As part of the disinvestment and privatization plan, the government had sold NT's 10 per cent shares ¿ five per cent to the public and five per cent to the staff. The staffs were offered the shares at a subsidized rate of Rs 90 per unit. The NT, according to the Finance Ministry's divestment plan, floated 75,00,000-unit of shares ¿ that is five per cent of the total ¿ in the first phase to the public. However, due to various reasons, it was under-subscribed to only above 53,00,000-unit shares. Last year, in the first AGM, it had distributed 25 per cent cash dividends. But with increasing profits, NT has decided to disburse 35 per cent cash dividend this year.

Source: THT

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 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.

Market down over investors' worry

The Nepse index (-3.82%) witnessed yet another week of depression as IPOs lured investors toward the primary market. The increase in the inter-banking lending rate has also discouraged investors from borrowing. In addition, the Maoist party´s disclosure of its nation-wide protest plans further deflated investor confidence. Signs of stability, the market exhibited last week did not last with the announcements of bonus and cash dividend from some of the major companies. 

The Commercial Banking sub-index (-5.91%) descended as major banks like Everest Bank (-Rs 320) which is experiencing post-book closure price readjustment, NIC Bank (-Rs 101) which declared 15% bonus shares, Siddhartha Bank (-Rs 88) which declared 10% cash dividend, Siddhartha Development Bank (-Rs 5) which declared 5% cash dividend, all shed prices. Losses of API Finance (-Rs 55) which started trading last week, and the post-book closure readjustment in the share price of Nepal Express Finance (-Rs70) caused losses in the Finance sub-index (-1.63%) despite Merchant Finance (+Rs 103) and General Finance (+Rs 20) efforts to recoup the losses. Swawalamban Vikas Bank´s (+Rs 28) share prices appreciated but with losses in the majority of the development banks, the sector index (-1.55%) declined. Shikhar Insurance (-Rs 6) and Lumbini General Insurance (-Rs 8) posted declines to drag the Insurance sector down (-0.49%). The ´Others´ sub-index (-0.92%) plunged as Nepal Telecom (-Rs 10) shed value. The only sector to defy the market downtrend was the Hydropower sector sub-index (+0.98%) through the appreciation of Chilime Hydropower (+Rs 32).

Among other highlights, Bank of Kathmandu (-Rs 35) declared lucrative benefits of 40% bonus shares and 7.37% cash dividend. Kumari Bank (-Rs 59) and Kist Bank (-Rs 27) closed their books for 10% bonus shares, and 3.50% cash dividend respectively on October 30 which will impact the market next week. Shree Investment Finance also closed its book for 20% bonus shares and 5.26% cash dividend on October 23. Asian Life Insurance´s IPO offering was halted on 30 October because its offer price violates the Company Act. Civil Merchant Bittiya Sanstha (+Rs 6), United Insurance, Sagarmatha Merchant and Finance (-Rs 3) are selling 730 units, 25,575 units and 40,790 units respectively of their unsubscribed right shares. The market volume (Rs 276,356,647) has strengthened; however, the current downtrend is substantiated by signals from technical analysis tools.

 REPUBLICA 

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.

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.

Nepse budge below benchmark 600

Kathmandu,11-Oct-09
Jamb Daily News Service The home equity market continued to stretch out in reverse direction on fragile investors' sentiments. The lackluster feat of Nepal Stock Exchange on recent days was kicked up with book closing date of Standard Chartered Bank Nepal. The downbeat momentum of stock market has waned the sentiments of investors due to bleak news on economical and growing political discrepancies amid the dividend declaration period by companies.
The benchmark index which lost 30.07 points on previous week plummets below the psychological level of 600 on Sunday's trade showing investors confidence are yet on dust level. Nepse closed at 599.33 points erasing 5.04 points or 0.83 percent, retreating to low for 27 months just points ahead of 7th July, 2007 of 598.52 points.
It is natural that, the trend of stock market swayed on positive and negative terrain; however our market has divulged string of unnatural move toward negative terrain from past few months. It's not because investors sentiment has haunted by bearish paws, it's because there are scarcity of strong good news that can escort up stock market. Better than expected earnings results of financial institutions along with dividend declaration by many, failed to provide the glimmer of hope to boost the market sentiments. However, the question is lingering in everyone's mind is, how and when will be market budge up to sun shine?
Most of the investors are selling at the same time driving the prices in downward spiral especially commercial bank scrip. Commercial banks which commands the titanic volume of trade at sole secondary market plummet 6.20 points or (-1.05%) to close at 582.76. Blue chip scrip asStandard Chartered (Rs. 3560, -Rs. 60), Everest Bank (Rs. 2250, -Rs. 20), Bank of Kathmandu (Rs. 1544, -Rs. 31) lost their scrip price along with basket of banking scrip. Likewise, finance shed 3.19 points to 630.95 triggered by downhill price of Patan finance (Rs. 279, -5.10%) andStandard finance (Rs. 275, -4.84%). Hydro sector lost 1.35 points; insurance slid diminutive of 0.13 points and others lost 7.04 points on weak performance of share of Nepal Telecom (Rs. 544, -Rs. 6). However, development bank rose 0.85 points or 0.13 percent to 654.50.
Sensitive index, 78 scrip domestic blue chip ended losing 0.91 points or (-0.60%) to 151.52 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 0.43 points to 57.41.
Merely 67 companies registered their presence in the secondary market with 16 gainers and 39 losers. The A-D ratio was maintained at .41. All in all 67656 shares traded today via 620 transactions. Moreover, Rs. 46983265 turnover was realized along with Rs.420197.01 million market capitalizations.
The top five standouts of the day are AIC(3.23%), PFL( 2.98%), ACEDBL( 2.18%), PFCL( 1.94%), KFL(1.84%). Whereas, CZBIL(-6.18%), PFLBS(-5.1%), STFL( -4.84%), CMBF( -3.74%), BLDBL( -3.69%). 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.

Financial Stocks Fronted Nepse Downhill

Jamb Daily News Service
Nepal Stock Exchange sagged down for second day in a row on Wednesday primarily led by financial stocks. Standard Chartered Bank (Rs. 3564, -10%) closed its book from 6th Oct. to 4th Nov. 09 for the purpose of having its Annual General Meeting on 4th Nov. 09. SCB, one of the leading commercial banks with spurring profit has proposed 50 % cash and 50% stock dividend to its shareholders. After week long Dashain holiday, Nepse had surged for consecutive two days however the gains were capped by two regular slumps in preceding days after SCB's book close.
The benchmark Nepse index plummets 5.32 points or 0.87 percent to 607.86, following yesterday's nosedived of 23.69 points or 3.72 percent. Nepali stock market is moving through deviant slump for months hammered by several gloomy news. Moreover, series of off-putting news as, ambiguous understanding of paid up capital provision on Monetary policies, floating of promoters share in the market, listing of dividend and right shares augmenting shares outstanding amid growing turmoil within political parties dented the growth of Stock market. However, fair profits by companies along with dividend declaration has provided hope for stock uphill, but investors were less concerned on profits and were throwing selling orders.
Dragged down in scrip prices of most of the financial stocks smashed the Sensitive index to 153.66, losing 2.14 points or 1.37 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 up 1.50 points to 58.18.
Commercial banks which commands the titanic volume of trade at Nepal Stock Exchange plummets 11.38 points or 1.88 percent to 592.86, led by fall in price of SCB. Likewise, development bank slid 5.30 points or 0.80 percent to 661.24, finance dropped 0.51 points. However, rise in share price of Chilime Hydropower (Rs. 1046, +Rs. 21) escorted the hydro index to 821.57 adding 6.80 points , insurance index put on diminutive of 0.49 points while others added 1.18 points as price of Nepal Telecom increased by Rs. 2 to Rs. 550.
Merely 66 companies registered their presence in the secondary market with 25 gainers and 34 losers. The A-D ratio was maintained at 0.74. All in all 152892 shares traded today via 1059 transactions. Moreover, Rs. 69759919 turnover was realized along with Rs.426176.76 million market capitalizations. Nepal Bangladesh Bank accounted for huge turnover of Rs. 14,748,350 followed by Citizens Bank's Rs. 5,921,130 and SCB's Rs. 5,432,210. Yesterday, 163259 shares traded today via 695 transactions amounting to Rs. 60717850 turnover along with Rs.429904.86 million market capitalizations.
The top five standouts of the day are NMBF(4.49%), PFL( 3.8%), LGIL( 3.78%), KMBF( 2.48%), SIL(2.29%). Whereas, GFCLPO(-48.61%), SCB( -10%), NDEP( -5.67%), LFLC( -3.91%), HGI( -3.85%). comprised of the top five losers.

Nepse rebounds along with higher Turnover

Nepal stock exchange gained on the opening day of week, Sunday after plunging for four straight sessions to around low of eight months. The psychology of general investor was haunted by fear on floating promoters¿ shares, political chaos and anxiety on government policies to guide the share market amid the dividend declaration by companies after the spurring profit of fiscal year 2065/66. However, the sole secondary market rebounded from earlier loss to add 2.55 points or 0.42 percent to 617.34 on higher turnover, but yet low for more than seven months.
The turnover at Nepse surged to Rs. 149.399 million with a motivating gain, boosted the outlook of investors to demand for more scrip in coming sessions. The general investor¿s outlook had followed by the bear crawl on fear of government policies to implement the Pan number for trade more than 1 million and disclosure of sources of fund for more than 2 million trades. Likewise, People were selling ahead of Dashain and Tihar to finance their festival even at the lower price, however on the other side some people holding optimistic outlook were buying the scrip.
The sectoral indexes traded at secondary market today witnessed mixed performance. Commercial bank, hydropower and others lead the gaining rally where as rest of the indexes plunged down. Commercial bank having its dominance in trade volume heaved up 2.23 points or 0.37 percent to close at 606.88, led by 9.79 percent rise in price of Lumbini bank (C:314, O: 286), SCB (O: 5039, H: 5197, C: 5089, Rs. +50), SBI (1591, Rs. +31) along with others. Others index rose 8.22 points or (+1.27%) to 653.24 on increase in scrip price of Nepal Telecom(O: 549, H: 558, C: 556). Hydro gained 6.45 points or 0.78 percent, however development bank slid 4.58 points to 665.41, finance plummet 1.14 points to 637.18 and insurance down 0.52 points.
The puff-up in demand of some scrip from commercial sector, hydro sector led domestic blue chip, 78 scrip sensitive index to settle at 157.68 adding 0.26 points or 0.17 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 0.06 points to 58.59.
Merely 71 companies registered their presence in the secondary market with 27 gainers and 33 losers. The A-D ratio was maintained at .82. All in all 918185 shares traded today via 1152 transactions. Moreover, Rs. 149399738 turnover was realized along with Rs.429486.31 million market capitalizations. On Thursday, Rs. 108687911 turnover was realized from 180963 shares trade along with Rs.427711.92 million market capitalizations. The increase in volume of trade and turnover signifies that there are lots of buyers in the market having optimistic outlook at near term.
The top five standouts of the day are GFCLPO(260%), LUBL( 9.79%), PRFL( 5.81%), EFL( 5.35%), STFL(4.74%). Whereas, NCM(-7.56%), IMEFI(-6.83%), NCCB( -4.55%), IDBL( -4.51%), SDBL( -4.14%). comprised of the top five losers.

Commercial banks’ bad showing lowers Nepse

Himalayan News Service
KATHMANDU: The good performance of others sub-group, development banks and finance companies sub-groups could not push Nepse up due to bad performance of commercial banks sub-group.Nepse gained a marginal 2.17 points today due to a key market propeller’s commercial banks sub-group negligible loss of 0.37 point.
The float index — the barometer of real transactions also lost 0.04 point, despite Nepse’s gain.The 2,650-unit shares of Nepal Telecom (NT) that were traded today at nine rupees higher than the last closing pushed the others sub-group up by 10.58 points to 656.77 points. Develeopment bank sub-group gained 5.14 points and finance companies sub-group surged by 2.73 points to push Nepse up by 2.17 points to 662.57 points.“It proves the dominance of commercial banks in Nepse,” said Prof Dr Manohar Krishna Shrestha.
“However, this dominance of banks and financial institutions is a temporary phenomenon,” he said adding that in the long-run the real sector will dominate the secondary market for its existence.“For the time being the concentration on banks and financial institutions will continue but it will shift slowly to the real sector,” he added.Investors prefer banks and financial institutions due to the greed for bonus and rights shares, and lack of investment in any other sector.
“Investors are aware of the fact that from next year the banks and financial institutions will distribute less bonus and rights shares,” Shrestha said adding that then the investors will also shift their focus.
Though the domestic secondary market is not following the fundamentals, it has started the correction. “Investors know that from next year the rate of returns will decrease and they will also not get rights and bonus shares of banks and financial institutions the key reason that has pushed market to its unbelievable high. The market has began the correction,” confessed an investor, who preferred not to divulge his name.