The dramatic decrease in turnover as compared to last week was primarily attributed to the bulk trading of Sanima Bikash Bank´s promoter shares that accounted for 30 percent of total turnover last week. [break]
The Hotels sector (+3.53 percent) posted the highest gain among all the trading groups as the share price of Soaltee Hotel (+Rs 18) surged.
The Hydropower sector (+1.43 percent) followed, bouncing back from its previous week´s dip, as the share prices of National Hydropower Company (+Rs 1), and Chilime Hydropower Company (+Rs 15) appreciated.
Similarly, Nepal Doorsanchar Company (+Rs 9) managed to lift the Others sub-sector (+1.94 percent) after experiencing two consecutive weeks of losses.
The Commercial Banking sector (+0.64 percent) continued to boost the market as Laxmi Bank (+Rs 39) and Nepal Bangladesh Bank (+Rs 10) gained share value. However, the Finance sector (-1.35 percent) continued its downward rally primarily attributed to Siddhartha Finance Company (-Rs.643) that resumed transactions after a long interval substantially dropping in price.
Furthermore, despite the share price of Chhimek Bikas Bank (+Rs.84) topping the gainers´ list, the Development Bank sector (-1.34 percent) plunged as share price of Diprox Development Bank (-Rs60) shed value.
But the Insurance sector (-0.15 percent) could not sustain last week´s gain as share price of National Life Insurance Company (-Rs.20) tumbled.
Amongst other highlights, Securities Exchange Board of Nepal (SEBON) celebrated its 18th anniversary on June 8. Shares of Kasthamandap Development Bank (Rs 278) started trading from June 10.
Nepal Share Market and Finance´s share trading has been halted until further notice as it is converting itself into a Class ´A´ commercial bank. Nepal Rastra Bank has declared Samjhana Finance as troubled institution and has directed it to comply with 10 new directives within six months to correct its financial position.
On the declaration front, Gorkha Finance and Om Finance are closing their books for 1:1 right shares on the June 17 and 18 respectively. While Chimmek Bikas Bank is issuing 2:1 right shares, Pathibhara Bikas Bank has announced 1:1 right shares.
Forecast
Despite the marginal increase in the market, technical analysis tools still indicate an overall long term uptrend with intermittent fluctuations as investors may be swayed towards short term gains.
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