All sub-sectors ended in the negative, as the selling pressure continued to drag the market further down with no new capital injection into the secondary market. In comparison to the previous week, the average daily turnover decreased by 11.35 percent. [break]
The Development Banking sector (-7.02 percent) posted the highest loss amongst all the sub-indices as key banks like Agriculture Development Bank (-Rs 72), Public Development Bank (-Rs 17), Clean Energy Development Bank (-Rs 22) saw their share prices depreciate.
Similarly, the Hydro Power sector (-3.69 percent) fell as Arun Hydro Power Co. (-Rs 25) and Chilime Hydryo Power (-Rs 5) lost value during the week. The Commercial Banking Sector (-2.95 percent) followed suit, as the share prices of DCBL Bank (-Rs 18), Nepal Investment Bank (-Rs 42) and Sunrise Bank Ltd. (-Rs 14) declined.
The ´Others´ Sub Sector (-2.196 percent) also continued its downtrend as share value of Nepal Telecom (-Rs 10) fell. Likewise, Prime Life Insurance (-Rs 18), Asian Life Insurance (-Rs 15) and Lumbini General Insurance (-Rs 4) dragged the Insurance Sector (-1.37 percent) down.
Finance sector (-1.22 percent) also ended the week in the red as share prices of NIDC Capital Market (-Rs 40) Kaski Finance Ltd. (-Rs 15) and Prabhu Finance (-Rs 22) plummeted.
Amongst news and highlights, the government plans to divest off its entire stakes in the banking and insurance sector within the next three years. Nepse received a total of 160 applications for the addition of new brokers.
In addition, Nepse´s GM Shankar Man Singh who had tendered his resignation is assuming office from Sunday, and India is to provide the CDS software within four months.
On the declaration front, Bank of Asia Nepal, ICFC Finance, United Finance and Business Development Bank have announced cash dividends of 10.53 percent, 15 percent, 13.16 percent and 8 percent respectively.
Citizen Bank International is holding its 4th AGM on September 24 for which it is closing its book on September 10. The bank will propose giving 12.63 percent cash dividend.
Similarly, Everest Bank is holding its 16th AGM on September 23 for which it is closing its book on September 5. The bank has declared to give out 30 percent each of bonus shares and cash dividend. In terms of IPO news, Kabeli Bikash Bank is issuing 60,000 units of ordinary shares from August 30 till September 12.
Forecast
Technical analysis indicators signal the benchmark index to decline further as it has broken out of its previous support level and reached an oversell position but with indication of reversals in the coming days.
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