Though the investors remained confident during the week, the market shed value on the last trading day. The daily average market turnover made a notable surge of 30.95 percent. [break]Trading of shares of Chilime Hydropower and KIST Bank contributed to almost 40 percent of the weekly market turnover.
The Hydropower sub-index (+8 percent) was the biggest gainer of the week and has been on the uptrend for the past few weeks as share prices of Chilime Hydropower (+Rs 98), Butwal Power (+Rs 29) and Arun Valley Hydropower (+Rs 10) surged. The ´Others´ sub-index (+0.95 percent) posted marginal gains as share value of Nepal Telecom increased. The Insurance sub-index (+0.08 percent) followed suit and ended in green zone helped by rise in share values of Siddhartha Insurance (+Rs 17) and Prime Life Insurance (+Rs 17).
Nonetheless, the other sub-indices failed to impress the investors and ended in the red territory. The Finance sub-index (-1.32 percent) continued with its downward spell, as share prices of International Leasing and Finance (-Rs 46), Nepal Aawas Finance (-Rs 19) and Hama Merchant & Finance (-Rs 24) tumbled.
The Commercial banking sub-index (-0.93 percent) continued to fall for the second consecutive week as Grand Bank Nepal (-Rs 30), Citizens Bank International (-Rs 9) and Sanima Bank (-Rs 9) saw their share values plummet. Likewise, drop in share prices of Oriental Hotels (-Rs 1) and Soaltee Hotel (Rs 2) pulled the Hotel sub-index (-0.80 percent) down. Also, the Development banking sub-index (-0.43 percent) dropped marginally as share prices of Kasthamandap Development Bank (-Rs 9) and Malika Development Bank (-Rs 11) depreciated.
Amongst news and highlights, the ordinary shares of Tourism Development Bank, Gulmi Bikas Bank and Kanchan Development Bank have been listed at Nepse. Prime Commercial Bank auctioning of 62,430 units promoter shares of Bank of Kathmandu to recover its bad debts. The deadline for application is August 12.
As of company announcements, Citizens Bank International has posted a net profit of Rs 222.97 million in the fiscal year ending 2011-12. Similarly, Grand Bank Nepal has posted net profit of Rs 183.66 million and Biratlaxmi Bikas Bank made net profit of NPR 32 million. Likewise, Fewa Finance and Bhargav Bikas Bank have posted net profit of Rs 55.57 million Rs 6.74 million respectively.
On the IPO side, Pacific Development Bank is distributing allotted shares certificates to its shareholders from August 8.
Forecast:
As per technical analysis, market may continue to drift sideways.
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