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.
::: Latest Buzz on Nepalsharemarket
Friday, November 27, 2009
Weekly Update
Tuesday, November 17, 2009
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.
Eagle Eyes on Kasthamandap IPO
Kasthamandap Development Bank, established under Company Act 2063 and operating under the provisions of Bank and Financial Institution Ordinance 2063 is licensed as B class Bank from Nepal Rastra Bank. The Bank is offering its Ordinary shares to General Public as IPO valued of Rs.960,000,000 (Divided in 960,000 Shares of Rs.100 each) From 2066/8/02 ¿ 2066/8/5 (Sooner) or to 2066/8/16 ( Later). With this issue, the Paid up capital of the bank will reached to Rs.320 Million. Well, if you are planning to apply for the IPO of this Bank then some of the below financial facts will be of great help to you. ( in '000)
Particulars 2064/65 2065/66 (Unaudited) 2066/67 (Projected) 2067/68 (Projd)
Paid Up capital 224,000.00 224,000.00 640,000.00 1,280,000.00
Reserve & Surplus 269.00 6,787.00 27,050.00 110,294.00
Unamortized Expenses (1,283.00) - -
Book Net worth 222,986.00 230,787.00 667,050.00 1,390,294.00
No. of Shares (' 000) 2,240.00 2,240.00 6,400.00 12,800.00
Per Shares Networth 99.54 103.03 104.23 108.62
Net Profit 269.00 6,518.00 20,403.00 83,244.00
EPS 0.12 2.91 3.19 6.50
Returned On Networth (%) 0.12 2.82 3.06 5.99 Observing the Bank profit for past 2 years and its projection for the forth 2 years, Bank has and won't seem to be able enough to earn handsome profit. But thanks to the Management team for being able to keep the Reserve and Surplus in positive figure in the early years too. In F\Y 2066/67, Bank has projected the profit of Rs.20, 403, which is 213.03% higher than this years profit. EPS too is projected to be 104% high, but these surged figures can't be termed as satisfactory in comparison to 185.71% increase in paid up capital.What can we expect from this Bank?If you are a profit hunter and you are applying the shares just for future cash inflow and little more of bonus shares then it's not the Bank you are looking for. With its projection, this Bank won't be able to return any handsome cash or pleased the shareholders with bonus shares. But if you're interested in holding its scrip to get the number multiplied with right issues then definitely you won't get disappointed. With in almost 3 Years to come, you'll be holding 4 shares for each you'll get allotted in IPO.How high it could go?
(in ,000) Vibor Bank Api Finance Sunrise Bank Kasthamandap
Paidup Capital 403,350 42,000 700,000 224,000
Reserve & Surplus (51,604) 756 355 6,787
Net worth Per Share 86.38 101.8 102.23 103.03
Price Listed on 428 550 499
PB Ratio 4.95 5.40 4.88
So looking to the average PB Ratio of these latest 3 IPO 5.07, we can expect this Bank's scrip to be listed between Rs.480 to Rs.520. But with the sharp decline of above companies' shares after listing, Rs.440 to Rs.460 would be fair price for this bank.
Source:Jamb News Service
Sunday, November 15, 2009
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
Wednesday, October 28, 2009
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
Tuesday, October 27, 2009
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.
Central Bank impede VIBOR's Dividend
The central bank of Nepal has stopped the dividend distribution to its promoter shareholders by VIBOR Bikash Bank Ltd. The ‘B' grade bank had decided to provide dividend to its promoter shareholders previously. NRB stopped the process by sending formal letter to the bank saying, the bank which is now a public limited, will be irrational to provide dividend to its promoter shareholders only.26, Oct 2009 Source:
Jamb News Service
