The market shed 10.19 points with the benchmark index closing at 474.63 points on Thursday. The total turnover for the week decreased by 49.13 percent, indicating a major decline in investors´ confidence. Investors seem to be moderating their return expectations as low market participation is lowering prices. [break]
The Commercial Banking sector (-2.75 percent) posted the biggest loss among the sub- indices as prices of Sunrise Bank (-Rs 75) that closed its book on June 11 for 10:3 right shares, Everest Bank (-Rs 80), and Lumbini Bank (-Rs 15) shed value.
The Hydropower sector (-2.01 percent) followed, as the share prices of Chilime Hydropower Company (-Rs 30), and Arun Valley Hydropower (-Rs 14) tumbled. The Finance sector (-1.94 percent) continued its downtrend as Royal Merchant Banking & Finance (-Rs 48) ended among the top losers´ list.
Similarly, Nepal Doorsanchar Company (-Rs.7) could not sustain its previous week´s gain, which dragged down the ´Others´ sub-index (-1.48 percent).
Likewise, the Insurance sector (-1.31 percent) also failed to impress investors as the share price of Nepal Life Insurance Company (-Rs.71) plummeted.
Despite the share price of Chhimek Bikas Bank (+Rs 65) topping the gainers´ list for the second consecutive week, the Development Banking sector (-1.24 percent) plunged as the share price of Kasthamandap Development Bank (-Rs 42) that started trading from last week depreciated.
IME Financial Institution (-Rs 12) posted the highest turnover (Rs 19,738,200) this week, followed by Asian Life Insurance Company (-Rs.14) with Rs 10,381,590.
Amongst other highlights, stock trading of Sanima Bikas Bank has been halted until further notice as it is converting into an “A” class commercial bank. Nirdhan Utthan Bank is holding a special general meeting on July 3 and its book will remain closed from June 25 till July 3.
Kasthamandap Development Bank is holding its 2nd annual general meeting and it is closing its book from June 25 to July 14. Similarly, Malika Bikas Bank is holding its 10th annual general meeting on July 12 and its book will remain closed from June 28 till July 12.
On declaration front, Bageshowri Development is issuing 1,485,000 units of right shares. Nepal Life Insurance is selling its undersubscribed right shares on auction.
On the IPO side, application for Arniko Development Bank and Seti Bittiya Sanstha Limited starts on June 25 and June 28 respectively.
Forecast
Technical analysis indicators show a trend reversal confirming new resistance levels in the benchmark index. The market in an oversell position accompanied by low volume indicates further downtrend for the coming week.
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