Commercial banks' Q2 NPA almost doubles

The Non-Performing Assets (NPA) of commercial banks seem to have almost doubled in the second quarter of the current fiscal year. According to the unaudited financial figures of the second quarter of the current fiscal year, the average ratio of NPA to the performing loans in the second quarter of the current fiscal year is at 0.88 per cent which was 0.48 per cent in the corresponding quarter of the previous fiscal year.

The slowdown in realty and housing sector can be accounted for the surge in NPA of the commercial banks this season. The bankers have been suggesting the central bank Nepal Rastra Bank (NRB) to relax the ceiling on housing and real estate lending, citing the slowdown in realty to have affected the performance of banks as most of the commercial banks' loan portfolio is dominated by these sectors.

Among the unaudited financial statements released by the twelve commercial banks Bank of Asia Nepal (BoAN), Kumari Bank Ltd (KBL), Kist Bank Ltd (KIST), Siddhartha Bank Ltd (SBL), Global Bank Ltd (GBL), Laxmi Bank Ltd (LBL), Citizens International Bank Ltd (CZBL) and Prime Bank Ltd (PBL) are the commercial banks expected to report an increased NPA for the second quarter in comparison to that of corresponding quarter in the previous fiscal year. Standard Chartered Bank (SCBL), Nepal SBI Bank (SBI) and DCBL Bank Ltd (DCBL) are expected to report a drop in NPA in the review.

NPAs are one of the key indicators that gauge the financial strength of any bank or financial institution. NPAs for banks are nothing but loans gone sour. It is a loan that can not be recovered from the customer within stipulated time, especially those exceeding 90 days of the predetermined period. The NPA does not yield any income to the banks in the form of principal and interest payments. NPAs eat into the income of the financial institutions as the primary source of income of financial institutions are the interest payments by borrowers.

Source:
tht

Financial Stocks Leads Nepse up (+3.16 Points)

Key financial scrip rushed to positive finish on Tuesday set off optimistic close on Nepal stock exchange after plunging hefty on previous session. The home equity market edge up 3.16 points or 0.56 percent to 564.98 after previous session's plunge of 5.12 points. 

In recent days, the sole secondary market is experiencing series of ups and down. It forward one steps up but eventually traded two steps down on frail investment outlook. Investors are on dubious situation what to do next and are too confused on predicting the stock market health. There are rumors around the city that market will collapse further more hence asking regularities bodies to act decisively in favor of stock market.

However today the market has ticked to higher end discounting all the negative rumors. But market analyst viewed that, even stocks have surged today it has indeed failed to uplift the market sentiment in upper perimeter. Investors are viewing carefully the each and every happening on political environment of nation which will basically craft the path of stock market in near term.

Commercial bank which accounts the large volume of trade ended adding 3.95 points or 0.73 percent to 541.46. Standard Chartered (Rs. 3600, +Rs. 40), Nabil Bank (Rs. 2655, +Rs. 5), Nepal Investment (Rs. 850, +Rs. 28), NIC Bank (Rs. 755, +Rs. 21) along with other key commercial bank heave up today to support the surge in Nepse index. Likewise, surge in scrip price of Sanima Bikash Bank (Rs. 577, +9.9%) and Vibor Bikash Bank (Rs. 392, +5.66%) led the development bank index to close at 5.96 points or (+0.97%) higher.

The BOD meeting of Sanima Bikash Bank scheduled on 16th November 2009 (2066 Mangsir 1) has decided to propose 1:1.5 right shares and previously than bank has decided to give 5% bonus shares from the profit of fiscal year 2008/09.

Finance sub-index was up 0.57 points to 599.76, others sub-index gained 2.35 points or 0.39 points, however hydro sub-index plummets marginal of 0.27 points while insurance lost hefty of 9.32 points or 1.55 percent.

Sensitive index gained parallel to Nepse index with a surge of 1.09 points or 0.78 percent to 141.50. Similarly, float Index an indicator of performance of ordinary shares in the market was up 0.25 points to 53.81.

Merely 60 companies registered their presence in the secondary market with 23 gainers and 26 losers. The A-D ratio was maintained at .88. All in all 207912 shares traded today via 857 transactions. Moreover, Rs. 72723685 turnover was realized along with Rs.413420.31 million market capitalizations. Yesterday, 100476 units share traded via 1042 transaction amounting to Rs. 56879894 turnover along with Rs.411106.27 million market capitalizations.

The top five standouts of the day are GFL(9.92%), SBBL( 9.9%), NUBL( 6.79%), VBBL( 5.66%), DCBL(5%). Whereas, DCBLPO(-5.77%), RMBFI(-5.71%), NLIC( -3.9%), GBL( -3.11%), BDBL( -2.49%). comprised of the top five losers.

Standard Chartered Bank at New Road

Standard Chartered Bank Nepal on Monday announced the opening of its new branch at People's Plaza. Located at the commercial hub of New Road, the branch will provide holistic banking solutions to its customers. The bank now has 18 branches and 23 ATM counters across the country.


Source:
ekantipur.com

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

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.

Weak Sentiment Pulls Nepse Down

Stocks at home bourse were solidly lower with blue chips share soften on shabby investors confidence. The benchmark Nepse logged its seventh session straight drop on Thursday to close at 579.58, losing 5.46 points or 0.93 percent. Sell-off marked the investors' sentiment that led secondary market to settle worst for more than 28 months.

Scrip price of companies which has recently declared dividends, as Bank of Kathmandu (40% stock dividend), NIC Bank (15% stock dividend) experienced fall of Rs. 45 and Rs. 61 respectively. This tendency shows that, at temporary phase the market is not running on fundamentals or technical strength but with the investors' sentiment which is absolutely feeble.

Fresh share at market in form of right share and bonus shares has increased the supply side in one hand, on the next IPOs in the market has shifted the investment to risk free and high return rather than plain sailing secondary market. Likewise, political discrepancies along with protest declaration by opposition party U-CPNL (moist) has definitely created an additional leg down in the market.

Selling spree has dragged down the scrip prices of most of the financial stocks that smashed the financial stocks loaded Sensitive index to plunged 1.93 points or 1.31 percent to 145.13. Blue chip scrip at Nepse consists 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 0.80 points to 55.26.

Commercial bank shed hefty of 9.02 points or 1.60 percent to 554.61, development bank lost 1.12 points or 0.17 percent to 646.68 while finance slipped 2.80 points to 614.51. Likewise, hydro plummets 3.38 points; however insurance heaved up slightly 0.23 points along with 5.88 points rise in others sectors. Among commercial scrip, NIC Bank (Rs. 754, -7.48%) fronted with the heavy decline along with slump in key banks as Standard Chartered (Rs. 3583, -Rs. 16), Nabil Bank (Rs. 2700, -Rs. 70), Bank of Kathmandu (Rs. 1515, -Rs. 45), Everest Bank (Rs. 1700, -Rs. 89) and so on. Likewise, execution of trade after book closure of Nepal Share markets Limited's Promoter share (Rs. 194, -71.17%), Merchant Finance (Rs. 431, -9.31%) dragged down finance sub index.

Merely 60 companies registered their presence in the secondary market with 13 gainers and 41 losers. The A-D ratio was maintained at 0.32. All in all 152527 shares traded today via 869 transactions. Moreover, Rs. 75312033 turnover was realized along with Rs.407538.89 million market capitalizations. Yesterday, 54727 units' shares traded via 738 transactions amounting Rs. 30385763 turnover along with Rs.412370.06 million market capitalizations. Today's increase in turnover along with down stock index shows that investors stampede to sell shares is at utmost ceiling.

The top five standouts of the day are GFL(4.26%), SBBL( 2.8%), RIBSL( 2.51%), NABBC( 2%), TBBL(1.93%). Whereas, NSMPO(-71.17%), MFCL( -9.83%), BLDBL( -8.77%), NICB( -7.48%), NHPC( -5.95%). comprised of the top five losers.

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.

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, Tilganga join hands to eliminate blindness

Standard Chartered Bank Nepal (SCBN), in its effort to eliminate avoidable blindness, has joined hands with Tilganga Eye Center for conducting at least 15 eye screening camps for underserved population in the Kathmandu Valley and neighboring districts.
Sujit Mundul, chief executive officer of the bank, and Dr Sanduk Ruit, medical director at Tilganga, signed an agreement to this effect on the occasion of the World Sight Day on Monday.

Under the agreement, the bank will be sponsoring cataract surgeries at the Tilganga Hospital for 700 needy patients from the targeted 6,000 OPD cases to be screened in those camps, states a press release. These cataract surgeries and other eye care facilities are being extended from the funds the bank raised through Walkathon, an annual event of the bank, and other charity events.

SCBN has been organizing various awareness and fund raising events for its community initiatives such as ´seeing is believing´ and ´living with HIV/AIDS´. The bank has already sponsored more than 4,000 cataract surgeries in Nepal over the last few years.

Source: Myrepublica.com

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.

NEPSE Weekly Update

09-Oct-09
Jamb Daily News Service
This week, the benchmark index at home bourse moved one step forward and two steps back primarily led by financial stocks. Following the weeklong holiday on Dashian festival the sole secondary market kicked up with spurring gains on initial couple of days, however failed to sustain its gains on price adjustment of Standard Chartered Bank after book closing date. SCB closed its book from 6th Oct. to 4th Nov. 09 for the purpose of having its Annual General Meeting on 4th Nov. 09 which will approved 50% cash and 50% stock dividends from the profit of fiscal year 2008/09. Along with SCB other key companies at Nepal stock exchange dragged down on pessimistic outlook amid growing chaos on political and economical milieu.
The benchmark Nepse index added 3.89 and 2.43 points for consecutive opening days respectively to 636.87 on Monday however plummets to 613.18 on Tuesday as price of SCB fell 26.67 percent to Rs. 3960 after book closing date along with other downswing financial stocks. At the closing session of week, the battered outlook of investors withdrew their hands from most of the financial stocks that led Nepse index to settle at 604.37 down 30.07 points or 4.74 percent.
Commercial banks which command the most trading volume at sole secondary market dipped hefty of 50.53 points or (-7.90%) to 588.96 from the opening of 639.49 Sunday. The biggest losers of the week from commercial banking sectors were SCB that lost 32.90% to Rs. 3620, NMB Bank fell 4.91% to RS. 368, DCBL Bank slid 4.57% to Rs. 334, Nepal Bangladesh Bank tumbled 4.32% to Rs. 288 along with others banks. Likewise, development bank slid 15.68 points to 653.65 from opening of 669.51 fronted by loss on Annapurna Bikash Bank (Rs. 431, -7.31%) and Swabalamban Bikash Bank (Rs. 650, -6.61). Finance plummet diminutive of 0.35 points to 635.14 while others dragged down 5.88 points to 646.19. However, hydropower surged 3.59 points to 827.69 from opening of 824.10 along with 1.89 points augment in insurance sector.
Dragged down in scrip price of Standard Chartered along with other financial stocks dented the Sensitive index. At the closing session of week, 78 scrip domestic blue chip slump 11.11 points or (-6.78%) to 152.52. 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 2.80 points 57.84.
Merely 90 companies registered their presence in the secondary market over this week. Losers overshadowed the market as 22 companies advanced and 47 companies declined. All in all 542,852 shares traded via 4141 transaction over the week. Moreover, Rs. 280,732,672 turnovers were realized along with Rs. 2,171,138.41 million market capitalizations.
This week, Standard Chartered Bank topped the chart of turnover amounting to Rs. 52.60 million, in terms of share quantity Nepal Bangladesh Bank lead the rank with 165000 units' shares and Pashupati Development Bank fronted in number of transaction with 546 transactions.
During the week, Nepal Express Finance listed 240000 units right share and 1075654 units bonus shares of Kumari Bank along with 600000 units ordinary shares of Api Finance has been listed in Nepal Stock Exchange.

Market Retraction Persists: Nepse plunged 4.88

Kathmandu,08-Oct-09
Jamb Daily News Service
Stocks in home bourse stagger down for third consecutive day fronted by hefty fall in financial sectors. Out of five trading days after weeklong dashain holiday, the sole secondary market edge up higher for initial couple of days, however retreated for remaining days as price adjustment of Standard Chartered (Rs. 3620, +Rs. 56) after book closing date hammered the Nepse index to low for more than seven months. On Thursday's session, the benchmark index kicked up with subdued fall, thereafter continued to wobble down to 602.98 at the closing bell dropping 4.88 points or 0.88 percent.
In is natural that, stocks market ebbs and flow to negative and positive terrain on vary investors' outlook buoyed by several factors. However, at contemporary phase after series of downfall investors at secondary market are much more anxious regarding the health of market in near term.
Key indexes performed lackluster on today's session fronted by commercial bank index (588.68, -5.56, -0.94%) as prices of Nepal Investment Bank sagged down 5.26 percent to Rs. 900 along with others. Likewise, development bank slid 7 points to 654.24, finance plummets 2.65 points and hydropower slump single points. Others sector dragged down 7.70 points while insurance experienced slight tick in its index by 0.06 points to 609.07.
Slump down in scrip prices of most of the scrip at Nepal Stock Exchange triggered the negative end to sensitive index that lost 1.23 points or 0.82 percent to 152.43. 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 0.34 points to 57.84.
Merely 65 companies registered their presence in the secondary market with 17 gainers and 40 losers. The A-D ratio was maintained at 0.43. All in all 106154 shares traded today via 829 transactions. Moreover, Rs. 59666995 turnover was realized along with Rs.423732.95 million market capitalizations. Yesterday, 152892 shares traded today via 1059 transactions amounting to Rs. 69759919 turnover along with Rs.426176.76 million market capitalizations.
The top five standouts of the day are PFL(7.55%), SIL( 2.79%), TBBL( 2.25%), CHCL( 2.01%), IFIL(1.97%). Whereas, LBFIL(-9.79%), CMBF( -5.69%), NIB( -5.26%), ILFC( -4.55%), DCBL( -3.47%). comprised of the top five losers.

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.

Standard Chartered Bank's book closure drags Nepse down by 23.69 points

REPUBLICA
KATHMANDU, Oct 6: In an unprecedented case seen in Nepal´s capital market, shareholders of Standard Chartered Bank (SCB) lost Rs 1,440 per share in a single trading day on Tuesday, prompting Nepal Stock Exchange (Nepse) index to shed 23.69 points.
Price of SCB shares dropped to Rs 3,960 per share from previous close of Rs 5,400 on Tuesday´s trading, where 200 units of bank´s shares changed hands. Book close cutoff date, the day after which company will not handle any transfer of shares requests until benefits dividends or bonus issues are transferred, of the bank on Monday and new pricing from Tuesday pushed down the price sharply.
SCB, one of the largest profit making private banks, has announced 50 percent bonus share and Rs 50 per share as cash dividend to its shareholders.
The huge loss in the share price of SCB pushed down the benchmark Nepse by 3.72 percent or 23.69 points to close at 613.18 points. During previous two trading sessions, Nepse had recorded marginal gains after weeklong Dashain holidays.
Sensitive index, an indicator of trading of Class A category companies, shed 8.61 points or 5.24 percent at the end of Tuesday´s trading session. Banking, the dominant trading group in Nepal´s capital market, lost whopping 39.28 points to drop at 604.24 points in its sub-index with the loss in the share prices of major banks, including Standard Chartered Bank, NMB Bank, Bank of Kathmandu and KIST Bank.
Development Bank and Hydro Power groups also saw their sub-indices slip by 2.3 points and 7.8 points to 666.54 points and 814.77 points respectively. However, Finance and Insurance groups registered marginal gains of 0.89 points and 1.48 points to close at 638.03 and 608.52 points respectively at the end of Tuesday´s session.
Total turnover reached Rs 6.07 million with 163,259 units of shares and 58 scrips changing hands through 695 transactions on Tuesday. Total market capitalization -- total worth of listed shares -- has reached Rs 429.90 billion.

Longest nosedive yet for secondary market

Himalayan News Service
KATHMANDU: As expected, the books closing of financial institutions dragged Nepse down to the lowest yet in 2009.All key market propellors commercial banks, development banks, financial institutions and hydropower companies lost this week to pull Nepse by a whopping 55.61 points to 614.79 points from Sunday morning’s opening of 660.40 points.
The hotels sub-group that did not see its shares traded while manufacturing sub-group gained by 4.41 points to reach 438.35 points from Sunday morning’s opening of 433.94 points.
Unilever Nepal Ltd’s 10-unit shares that were traded at Rs 4,346 per unit making it dearer by Rs 85 per unit pushed up the manufacturing sub-group by 4.41 points.Unilever Nepal has recommended Rs 450 cash dividend Rs 400 normal dividend and Rs 50 as commemorative dividend on the occasion of the completion of its 15 years of commercial production in Nepal from the profit of the last fiscal year when it registered a RS 2625.8 million turnover. The company also posted Rs 444 million net profit (after tax). It registered Rs 482.29 Earning Per Share (EPS) and 64 per cent Return on Equity (RoE) in the fiscal year 2008-09.
Though the week started in the green, gaining 2.17 points to 662.57 points on Sunday, it plunged by a whopping 55.61 points during the week.
Currently, banks and financial instituions dominate the secondary market and two institutions Standard Chartered bank Nepal and Nabil Bank are dominant players in the movement of Nepse, putting the secondary market under ‘concentration’ risk. Nabil Bank’s books closing on Tuesday dragged Nepse down by 27.42 points but the bank topped the chart in terms of transaction amount with Rs 67.83 million. Standard Chartered Bank Nepal followed with Rs 58.42 million, and Bank of Kathmandu (with Rs 36.49 million), Standard Finance (with Rs 34.99 million) and Nepal SBI Bank (with Rs 18.36 million) managed to come in the top five slot, respectively. In terms of number of share units traded, Standard Finance topped the chart with 1,35,000-unit shares changing hands while in terms of number of transactions Citizens’ Bank International topped the chart with 407 transactions.
The transaction amount increased by 40.08 per cent to Rs 483.89 million against last week’s fall of 32.63 per cent. Group-A companies contributed 70.71 per cent as against last week’s 67.75 per cent whereas the 78-scrip sensitive index a barometer of Group-A companies lost a hefty 16.20 points to drop to 157.42 points.
The float index calculated on the basis of real transactions also slid down by 5.14 points to drop to 58.53 points from Sunday morning’s opening of 63.67 points.

Unilever dividend could not push Nepse up

Himalayan News Service
KATHMANDU: Cash dividends of Unilever Nepal Ltd could not spread cheer in the domestic market as the banking sub-group dragged Nepse down by 27.42 points today to 630.11 points.
The banking sub-group lost 47.2 points to drop to 626.31 points due to major banks, especially Nabil Bank, losing heavily. Due to books closure Nabil’s shares dropped by Rs 1,599 per unit or over 38 per cent, forcing Nepse to suspend its transaction.
Nabil’s 340-unit shares traded between Rs 2,652 and Rs 2,600. Yesterday, they closed at Rs 4,251 per unit.“This is a market price correction to reflect the dividend and bonus shares that Nabil has proposed following the delivery of an unprecedented profit of Rs 1.03 billion in the last fiscal year,” said Anil Shah, chief executive officer of Nabil Bank. Every investor, who owned shares of Nabil till that closing will receive 50 per cent bonus shares (one share for every two) and a cash dividend of 35 per cent (Rs 35 per share). “When the market opened this morning, it was known that those who purchased shares from today forward would not receive the bonus shares or cash dividend,” he said adding that therefore the market to a large extent adjusted the price of the shares.
He also promised to continue to deliver unprecedented shareholder value in the years ahead in order to protect blue chip investment in Nepse.Currently, banks and financial instituions dominate the secondary market and two institutions — Standard Chartered bank Nepal and Nabil Bank — with the highest share prices are playing a determining role in the movement of Nepse. “However, with the increase in the number of listed financial institutions and the depth of trading in the market this ‘concentration’ risk will diminish over time,” Shah hoped.
Meanwhile, Unilever Nepal Ltd’s 96th Board of Directors (BoD) meeting recommended Rs 450 cash dividend — Rs 400 normal dividend and Rs 50 as commemorative dividend on the occasion of completion of its 15 years of commercial production in Nepal — from the profit of the last fiscal year. The company had a turnover of Rs 2625.8 million in 2008-09. It has posted Rs 444 million net profit (after deducting tax).
Unilever’s BoD meeting at the company head office in Mumbai yesterday approved the audited annual accounts of the company for the fiscal year 2008-09. It also approved distibution of Rs 325 as Interim Dividend per share out of the cash dividend of Rs 450 per share post certification of the audited annual accounts for the fiscal year by statutory auditors.

Nabil, IMEFI book closure drags Nepse down

REPUBLICA
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.