Commercial Banking (+7.52%) sector was the biggest gainer this week with substantial increases across most major banks with gains in the sector led by Nabil Bank (Rs.445). Sanima Bikas Bank (+Rs. 111) and Ace Development Bank (+Rs. 80), both among the top three gainers, strengthened the Development Bank sub-index by 6.33%. Despite strong performance by Fewa Finance (+Rs. 243), which is scheduled to close its books on July 13 for issuing 1:2 right shares, as the highest gainer for the second consecutive week, the Finance sector (+0.47%) increased only slightly due to the big declines in the prices of Everest Finance (- Rs 144) and NIDC Capital Market (- Rs 466) as their prices adjusted after the book closure for 1:1 right shares and 10:3 bonus shares respectively. Nepal Telecom´s (+Rs 15) advancement pushed up the ´Others´ sector (+2.73%) while Chilime Hydropower´s (+Rs.35) gain elevated the Hydropower sub-index (+1.61%). Insurance sector (-0.01%) was the only sector in the red this week.
The market turnover for the week amounted to Rs. 383,313,602 -- a 17.36% decrease from last week. However, last week´s turnover was inflated due to the bulk trading of shares of National Hydro Power, Nepal Bangladesh Bank and Nepal Credit and Commerce Bank by NB Group. Regardless, the final day of trading this week recorded a healthy turnover of Rs. 77,567,483 indicating increased demand pressure. We expect the market to maintain its upbeat tone in the upcoming week. Technical analysis signals indicate that the market is in an uptrend which will be sustained for a while.
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