MONEY»
Nepse still in no-go zone
KATHMANDU, AUG 21 -
There is no hope for the capital market, with Nepal Stock Exchange (NEPSE) losing points four consecutive weeks. It saw double digit decline of 12.19 points last week to settle at 442.05 points.
Analysts say the uncertainty due to the fluid political situation hammered the secondary market. Besides, the low return compared to cost of investment also turned investors passive.
Even banks and financial institutions (BFIS) declaring bonus shares and cash dividends did not raise hope among investors. Despite Nepal Rastra Bank loosening provisions on loans and margin lending as per the demands of investors, it could not attract investment. The monetary policy for the current fiscal year has allowed BFIs to give loans to investors up to 60 percent against average value of shares for the last 180 days or the latest share price, whichever is lower.
“Investors are compelled to sell their shares at lower prices just to repay loans they took to purchase shares due to the sluggish market,” said Nanda Kishor Mundada, president of Nepal Stockbrokers’ Association. “That’s why, the capital market is seeing a huge flow of shares.”
He said that the possibility of share market getting bullish again was bleak in the current situation. “The investors are pessimistic as the rate of returns is slow.”
Last week, the group comprising commercial banks led the losers’ list, dropping 20.19 points. The significant drop in the share prices of heavyweights like Standard Chartered Bank and Everest Bank pulled down the index of the group. The group including hydropower companies, insurance companies, development banks and finance companies also went down by 8.35 points, 6.11 points, 5.32 points and 2.27 points, respectively.
Meanwhile, the group of manufacturing and processing companies registered a double digit growth of 13.08 points. It witnessed trading of a huge block of shares of Gorakhakali Rubber Udyog Limited on the last trading day of the week.
The index of hotels group also went up by 0.34 point during the week. However, the group of others and trading companies did not see a change in their index.
Last week, the share market witnessed an increase in turnover to Rs. 160.56 million from Rs. 151.58 million the previous week. The number of shares traded also registered an increase of 202.35 percent. A total of 967,181 shares changed hands over the week, in contrast to 319,887 the previous week. The number of transactions however, declined to just 4,553 from 5,019 transactions the previous week.
Last week, stocks of Gorakhakali Rubber Udyog Limited was in pole position in terms of turnover and the highest number of shares traded. The company witnessed a turnover of Rs. 25.88 million from its the of 681,000 shares on Thursday.
Prime Life Insurance Company bagged top slot as highest number of transactions, registering 822 transactions. Last week, a total of 46,262,906 shares of International Leasing and Finance Limited (13,688,000 rights), People’s Finance Limited (199,906 Bonus), Agricultural Development Bank (30,375,000 ordinary) and City Development Bank (2,000,000 units-ordinary) were listed at NEPSE.
NEPSE LAST WEEK
Number of companies 102
Number of transactions 4553
Total turnover Rs. 160.05m
Number of shares traded 967,181 units
SECTORS THAT WENT UP
Sector Points Gained
Manufacturing, Processing Companies 13.08
Hotels 0.34
SECTORS THAT went down
Sector Points Lost
Commercial Banks 20.19
Hydropower Companies 8.35
Insurance Companies 6.11
Development Banks 5.32
Finance Companies 2.27
TOP FIVE COMPANIES IN TERMS OF TURNOVER
Company Turnover (in Rs. millions)
Gorakhakali Rubber Udyog Limited 25.88
Standard Chartered Bank 23.64
Bank of Kathmandu 11.79
Everest Bank 11.70
Nabil Bank 11.10
Current and Upcoming IPOs & RightS Shares
Name of Institutions Issue Size (Qty) Types Ratio Starting Date Closing Date Issue Manager
Gorkha Finance 691,423.00 Rights 1:01 Jun 30 2010 Aug 29 2010 Growmore
Merchant Finance 900,000.00 Rights 1:03 July 15 2010 Sept 12 2010 Growmore
Siddhartha Bank 4,761,000.00 Rights 2:01 July 29 2010 Sept 02 2010 Ace Dev. Bank
Subhechha Bikas Bank 528,000.00 Rights 01:01.1 July 20 2010 Aug 23 2010 Ace Dev. Bank
Tinau Dev Bank 300,000.00 IPO Aug 19 2010 Aug 23 2010 CIT
Citizens Banks Intl 10,000,000.00 Rights 1:01 Aug 22 2010 Sept 26 2010 Elite Capital
Infrastructure Dev Bank 4,800,000.00 Rights 01:01.5 Aug 22 2010 Sept 26 2010 Growmore
Narayani National Finance 2,175,879.00 Rights 2:01 Aug 23 2010 Sept 26 2010 Ace Dev. Bank
Clean Energy Dev Bank 7,680,000.00 Rights 01:02.4 Aug 27 2010 Sept 30 2010 NMB Bank
Kabeli Bikas Bank 60,000.00 IPO Aug 29 2010 Sept 03 2010 Elite Capital
It’s bonus time
Along with their 4th quarterly report, banks and financial institutions' are also announcing cash dividend and bonus shares to the shareholders. Here is the list
Name of Institutions Cash Dividend Bonus Shares
Everest Bank 30pc 30pc
Citizens Bank International 12.64 % ----
IME Financial Institution ------ 5:1
Triveni Bikas Bank ------ 18 %
Bank of Kathmandu 15 % 15 %
Sagarmatha Merchant Banking 10 % 10 %
Business Development Bank 8% ------
Upcoming AGMs
Name of Institutions Proposal Date Venue
Growmore Merchant Banker Ltd. Discussion on Annual Report 28-Aug Hotel De La Annapurna
Oriental Hotels Limited Discussion on Annual Report 06-Sep Nepal Administrative Staff College
Special Annual General Meeting
Nepal Sahakari Sanstha Limited Reshuffle of the Executive Committee 11-Sep Bagbazar Party Palace, Aradhan Complex
Posted on: 2010-08-22 09:21
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