Commercial Banking sector (-2.18 percent) further underscored its losses this week with Citizen´s Bank (-Rs 38.) and Sunrise Bank (-Rs 24) leading the losses. Similarly, the Finance sector (-1.01 percent) also declined as Kaski Finance (-Rs 69) continued its fall, posting the top loss for the week. Paschimanchal Finance (-Rs 42) and Om Finance (-Rs 72) posted the other top losses. [break]
Despite Bhrikuti Bikas Bank (+Rs 39) being the biggest gainer this week, the Development Bank sub-index (-0.79 percent) dipped as price of Sahayogi Bikash Bank (-Rs 20) fell significantly. Hydropower sector (-2.80 percent) was the other big loser amongst the sectors with the stock prices of National Hydropower (-Rs 4) and Arun Valley Hydropower (-Rs 30) plummeting.
However, the ´Others´ sub-index (+12.06 percent) which had made a huge plunge last week rebounded as stock price of Nepal Telecom (+Rs 49) unprecedentedly shot up. Strong performance of Rastriya Beema Sanstha (+Rs 89) continued which augmented the rise of the Insurance sector (+0.79 percent). Bishal Bazaar´s (+Rs 142) stock made a sizable gain lifting up the Trading sector (+6.43 percent). Meanwhile Unilever Nepal (-Rs 86) posted a surprising decline.
In terms of market reform, NRB introduced some major changes to existing policies this week. A new policy now bars investors holding up to 15 percent ownership in one company from holding more than 1 percent ownership stake in another institution. Current investors are provided 5 years to lower their current holdings.
Similarly, NRB has also amended its Capital Adequacy Framework. It requires all banks to report their capital adequacy ratios to the central bank on a monthly basis instead of quarterly. Amongst declarations, General Finance (Rs 0) and Miteri Development Bank (-Rs 6) will be giving out 1:1 right shares.
Annapurna Finance announced that it will upgrade to a Development Bank. Promoter shares of Fewa Finance (Rs 21,038,100), World Merchant and Banking Finance (Rs 6,864,480), and Nepal Share Market (Rs 546,000) accounted for 24.73 percent of the market turnover.
Forecast: Liquidity crunch persists in the market. Technical analysis signals that the market might see some upward momentum for the week as a result of the oversell position.
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