KATHMANDU, Aug 17: The Nepal Stock Exchange (Nepse) index (-1.04 percent) ended the week in red territory for the first time in the current fiscal year 2012-13. The benchmark index shed 4.20 points to close at 398.26 points on Thursday.
The index lost value throughout the week. It, however, however, bounced back on the last trading day led by the Commercial Banking Sector amidst better than expected financial results of Banks and Financial Institutions (BFIs).[break]
The Hydropower sub-index (-2.59 percent) caused the biggest disappointment of the week, as share price of Chilime Hydropower (-Rs 57) tumbled. The Commercial banking sub-index (-2.04 percent) shed value for the third straight week due to fall in share prices of Sanima Bank (-Rs 25), NMB Bank (-Rs 16), Prime Commercial Bank (-Rs 14) and Nepal Bangladesh Bank (-Rs 7) slumped. Similarly, the Finance sub-index (-1.37 percent) continued with its downward momentum as International Leasing and Finance (-Rs 25) and Prabhu Finance (-Rs 16) ended amongst the top losers of the week. The Development banking sub-index (-1.33 percent) followed suit as share prices of Karnali Development Bank (-Rs 8) and City Development Bank (-Rs 16) declined.
Nevertheless, the ´Others´ sub-index (+0.75 percent) posted marginal gains as share price of Nepal Telecom (+Rs 4) went up. Similarly, the Insurance sub-index (+1.46 percent) defied the market trend helped by rise in share prices of Siddhartha Insurance (+Rs 36) and Life Insurance Company Nepal (+Rs 61). Likewise, the Manufacturing and Processing sub-index (+4.18 percent) impressed investors as share price of Unilever Nepal Limited (+Rs 559) soared up.
Amongst news and highlights, NIBL Capital -- a subsidiary of Nepal Investment Bank -- has formally started operation as a merchant banker. Nepal Rastra Bank (NRB) has given final approval for the merger between Vibor Bikash Bank and Bhajuratna Finance and Savings Company.
As for company announcements, listed companies have started publishing fourth quarter results of the fiscal year 2011/12. Among banks, Nabil Bank has posted a net profit of Rs 1,722.1 million, Everest Bank Rs 1,090.5 million, Standard Chartered Bank Nepal Rs 1,168.9 million, Bank of Kathmandu Rs 607.6 million, Nepal SBI Bank Rs 475.6 million, Nepal Investment Bank Rs 1,318.2 million and NIC Bank Rs 394.1 million. Similarly, Chilime Hydropower has posted net profit of Rs 932.6 million, Butwal Hydropower Rs 561.1 million and Nepal Telecom Rs 13,708.4 million.
Sewa Bikas Bank has proposed to give 20 percent bonus shares to its shareholders. Similarly, Triveni Bikas Bank has proposed to distribute 13 percent dividend and 10 percent bonus share and Mahakali Bikas Bank has proposed to distribute 12 percent dividend to its shareholders. All the above benefits are subject to approval from NRB and its AGM. Similarly, Unilever Nepal Limited has proposed to distribute 680 percent cash dividend to its shareholders.
Forecast:
The average daily market turnover has increased by 7.94 percent compared to previous week. As per technical analysis, market may witness a volatile trading week ahead with imminent highs and lows.