Currency
Nepali rupee gained 95 paisa against a dollar this week, as the greenback weakened against Indian currency with which the Nepali rupee is pegged. On Friday, a dollar was exchanged at Rs 72.20.
Nepal Rastra Bank, the monetary authority of the country, had set the exchange rate of a US dollar at Rs 73.15 when the market opened on Sunday. As dollar witnessed drop in demand, rupee gained 45 paisa on Monday and strengthened by further 16 paisa on Tuesday. On Wednesday, rupee shed a paisa against a dollar, compared to Tuesday. But it again bounced back, gaining 21 paisa on Thursday and 14 paisa on Friday, when the market closed.
Similarly, rupee gained 19 paisa against a pound sterling, but shed 72 paisa against a euro over the week. On Friday, a pound sterling was exchanged at Rs 114.31, while a euro was valued Rs 98.11.
Bullion
The price of gold continued to jump to new record and recede this week as well, as ban on import and short supply of the yellow metal spurred sharp upheavals in the price. On Friday, consumers paid as much as Rs 31,655 per 10 grams for gold, which was over Rs 1,000 more than the international rate.
The central bank, although failed in its attempt to supply 100 kg of gold in the market through auction, had set the minimum price of gold at Rs 31,249.50 per 10 grams. However, the rate that Nepal Gems and Jewelry Association (NGJA) fixed for its member retailers remained much higher. Nepal Gold and Silver Dealers´ Association, on the other hand, did not fix retail rates for its members this week as well.
On Sunday, dealers and jewelers compelled consumers to pay at least Rs 31,715 per 10 grams of gold. They lowered the price on Monday by about Rs 35 and additional Rs 180 per 10 grams on Tuesday, on announcement of gold auction by NRB. But they again jacked up the price to Rs 31,920 per 10 grams on Wednesday after the central bank´s auction bid failed to supply enough gold in the market. On Thursday, gold became cheaper by about Rs 100 per 10 grams and its price further went down by Rs 170 on Friday.
The price of silver too went up to Rs 560 per 10 grams over this week.
Stock
NEPSE sheds 1.26 points
The Nepal Stock Exchange (Nepse) index failed to sustain last week´s gain as it decreased by 0.31 percent, losing 1.26 points this week, with the benchmark index closing at 403.15 points on Thursday. The total turnover decreased by 4 percent as compared to the last week. Nepal Bangladesh Bank alone contributed 39 percent of the total weekly market turnover, once again supporting the notion that large investors are actively participating in the market.
The Insurance Sector (-3.95 percent) for the second consecutive week posted the highest loss among the sub-indices, as share value of Prime Life Insurance (-Rs 9) and Life Insurance Company Nepal (-Rs 19) toppled. Similarly, the ´Others´ sector (-0.93 percent) followed suit, as Nepal Telecom (-Rs 9) could not sustain to its previous week´s advance.
The Finance Sector (-0.82 percent) continued its downward spiral as Butwal Finance (-Rs 110) and Nava Durga Finance Company (-Rs .40) ended amongst the top losers list.
Likewise, the Development Banking sector (-0.31 percent) failed to impress investors as share values of Mahakali Bikas Bank Limited (-Rs 18), and Sewa Bikas Bank (-Rs 12) declined. Furthermore, the Hydropower sector (-0.16 percent) after two weeks of consecutive gains booked a marginal loss as share value of Chilime Hydropower Company (-Rs 11) dropped.
Nevertheless, the Commercial Banking sector (+1.02 percent) resisted the downward trend, as share values of key banks like Sunrise Bank Limited (+Rs 14), KIST Bank (+Rs 11), and Prime Commercial Bank (+Rs 14) appreciated.
Amongst news and highlights, Securities Board of Nepal (SEBON) has brought the Mutual Fund Regulation effective from September 27. Shangri-La Development Bank and Bageshwori Development Bank have submitted application at the Nepal Rastra Bank for their merger.
On declaration front, Clean Energy Development Bank and Fewa Finance have declared 15 percent and 15.79 percent cash dividend respectively. Similarly, Prime Commercial Bank is going to issue 1:1 right shares. Laxmi Bank is holding its 10th AGM on October 31, for which it has closed its book on October 1. The bank will propose to give 13 percent cash dividend to its shareholders. Triveni Bikas Bank is holding its 7th AGM on October 19 and is closing its book on October 7. It will propose 18 percent bonus shares.
Likewise, Shree Investment and Finance is holding its 16th AGM on October 29, for which it is closing its book on October 12. It will propose 15 percent bonus shares and 8.16 percent cash dividend. Sagarmatha Merchant Banking & Finance is holding its 5th AGM on October 27 for which it is closing its book on October 7. It is propose 10 percent bonus shares, 10 percent cash dividend and 1:1 right shares. Kumari Bank Limited is closing its book on October 3 to issue 20:3 right shares.
Forecast: Technical analysis indicators signal market to be in an oversell position with new resistance level in the index.
(The Stock analysis from Beed Invest Pvt Ltd. No expressed or implied warrant is made for usefulness or completeness of this information and no liability will be accepted for consequences of actions taken on the basis of this analysis)
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