On the primary market front, NMB Bank, the issue manager for Sunrise Bank´s IPO subscription, having misplaced 47 of the IPO applications, is undergoing investigations by SEBON. Meanwhile, Prime Commercial Bank is set to issue IPO next week.
Among the sectors, the trading sector (+10.59%) led the way from last week as Bishal Bazaar Company´s share price continued to advance. The “Others” sector (+5.29%) also edged up with the resumption of the distribution of 25% cash dividend of Nepal Telecom Company. The commercial banks sector (+2.67%) rallied up this week; Standard Chartered followed through its consistent performance from last week. Standard Finance Company´s superior performance due to its 1:5 right shares issuance pulled the financial institutions sub-index (+1.99%) further up this week. Insurance companies (+2.69%), which performed dismally the previous week, logged in solid gains this week primarily due to the rise in the share price of National Life Insurance Company as the company is issuing 1:1 right shares.
The Development Banking sector (-6.07%) was unable to continue its recovery from last week as Ace Development Bank readjusted its share price post right shares book closure. The hydropower sector (-3.47%), the growing alternative to commercial banking sector, was also unable to maintain its upbeat tone from last week as all the three listed hydropower companies registered a decline in their share prices.
The substantial increase in the turnover in the market solidifies the positive forecast about the market. Among other major developments this week is the takeover of Bank of Kathmandu´s management by Nepal Rastra Bank after several unsuccessful attempts to resolve the dispute within the bank´s management committee. However, the performance of the bank is still consistent with only a marginal bearing on the share prices.
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