The ´others´ sub index (-1.04%) was the biggest loser of the week as Nepal Telecom (-Rs.5) share value decreased. The Development banking sub-index (-0.48%) followed suit as Purnima Bikas Bank (-Rs.26) and Rara Bikas Bank (-Rs.5) share prices went down.[break]
Nonetheless, the ´other´ sectors defy the market pattern. The Insurance sub index (+1.34%) was the highest gainer of the week as share prices of Prime Life Insurance (+Rs.13) and Life Insurance Company Nepal (+Rs.25) rose. The Hydropower sub-index (+0.64%) continued with its upward momentum as share values of Butwal Power Company (+Rs.21) and Chilime Hydropower (+Rs.2) appreciated.
The Finance sub-index (+0.36%) bounced back from its previous week drop as Seti Finance (+Rs.12), Royal Merchant Banking & Finance (+Rs.13), and NIDC Capital Markets (+Rs.15) ended amongst the top gainers of the week. Similarly, the Commercial banking sub-index (+0.23%) managed to close on the green territory as share prices of Agriculture Development Bank (+Rs.5), Nepal Bangladesh Bank (+Rs.3) and Himalayan Bank (+Rs.14) surged.
Amongst news and highlights, Nepal Investors Forum has submitted a 17 point long-term reform plan to the government to revitalize the capital market on Thursday. Global Bank, IME Financial institution, and Lord Buddha Finance have received final approval for merger. The new entity will start operation from 9th July as ´Global IME Bank Limited´. Likewise, Macchapuchchhre Bank and Standard Finance Limited have also obtained final approval for merger and the merged entity will start operation from 9th July as ´Macchapuchchhre Bank Limited´.
Stock trading of NIC Bank and Bank of Asia Nepal has been suspended for merger process, similarly, stock trading of Corporate Development Bank and Social Development Bank, Kathmandu Finance and Civil Merchant Bittiya Sanstha has also been suspended for merger process.
As of company announcements, Everest Finance is selling 253,950 units of undersubscribed promoter shares and 66,815 units of public shares on auction; the deadline for application is 11th July. Similarly, NLG insurance Company Limited is selling 32,205 units of undersubscribed right shares on auction, the deadline for application is 9th July. On the IPO side, Paschimanchal Grameen Bikas Bank is issuing 340,000 units of ordinary shares to the general public from 13th July. Tourism Development Bank has allotted its primary issue.
Forecast
The daily average turnover has seen a surge of 9% as compared with the previous week. Technical analysis indicators signal a short term up-trend for the coming week if accompanied by volume.
Related story
Take measures to boost confidence of investors
