The secondary market, which has been down for months, fell further as the key sub-indices plunged. In addition, the initial public offering (IPO) of Nilgiri Vikas Bank and Gaurishankar Development Bank lured investors away from the secondary market. [break]
Despite Nepal Credit and Commerce Bank (+Rs 12) posting highest gains for the second consecutive week, the Commercial Banking sub-index (-3.2 percent) did not fare too well as Nepal Investment Bank (-Rs 20), which is auctioning 20,288 units of ordinary shares, and Standard Chartered Bank (-Rs 176), which registered the highest turnover for the week, shed values.
Similarly, Gurkha Development Bank (-Rs 68) and Malika Bikas Bank, which is issuing 1:1 right shares, dragged down the Development Banking sector (-4.06 percent) significantly. Similarly, the Hydropower index (-2.77 percent) failed to sustain its uptrend as Chilime Hydropower (-Rs 10) shed value.
Despite Paschimanchal Finance (+Rs.15), which declared 30 percent bonus shares, booking a large gain, the Finance sector (-1.37 percent) ended the week in the red zone mainly due to the big drops in the share prices of CMB Finance (-Rs.56), which is closing its books on March 25 for 1:1 right shares and Lalitpur Finance (-Rs.323) that is undergoing price readjustments.
Likewise, the Insurance sector (-0.60 percent) went down due to decline in the share prices of Siddhartha Insurance (-Rs 7). However, the ´Others´ sector (+1.10 percent) defied the downtrend as Nepal Doorsanchar Company´s stock price (+Rs.5) gained value.
Amongst book closures, Bageshwori Development Bank and Miteri Development Bank are closing their books on March 20 for 1:1 right shares and March 22 for 20 percent bonus shares respectively. Madhyamanchal Gramin Bikas Bank (-Rs 16) and Diprox Bikas Bank have proposed 1:5 right shares and 1:1.5 right shares respectively.
Business Development Bank (-Rs.10) is selling 5,161units of right shares on auction. NIDC Capital Market (Rs 0) will be closing its book on March 26 for 10 percent cash dividend and 20 percent bonus shares, while Nava Durga Finance will close its book on March 27 for 15 percent bonus shares.
Meanwhile, Imperial Finance (Rs 0) has declared 20 percent bonus shares. Amongst Insurance companies, Everest Insurance has declared 20 percent cash dividend and 10 percent bonus shares, Sagarmatha Insurance has declared 11 percent cash dividend, and Alliance Insurance (Rs 0) has declared 15 percent bonus shares.
The market turnover observed a further decline along with the decrease in the index level. The overall market sentiment shows no sign of improvement. Technical analysis has signaled a downtrend, indicating that the prices of stocks will take a further hit next week.
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