However, the total turnover went up by 6.93 percent, ending the consistent fall recorded during past weeks indicating a shift in investor sentiment. Furthermore, the turnover was also aided by NRB´s investor friendly Monetary Policy. [break]
The Insurance sub-sector (-9.30 percent) posted the highest loss amongst the sub-indices as Prime Life Insurance (-Rs 103) and Asian Life Insurance (-Rs 20) shed values. A considerable drop in share prices of Chilime Hydro Power (-Rs 61) and Arun Hydro Power (-Rs 15) led to a dismal performance by the Hydropower sector (-2.64 percent).
The Finance sector (-2.02 percent) also ended week in the red with share prices of United Finance (-Rs 58), Crystal Finance (-Rs 35) and Narayani National Finance (-Rs 24) falling.
Likewise, the Commercial Banking sector (-1.33 percent) plunged as share prices of key banks like Bank of Kathmandu (-Rs 56) and Himalayan Bank Ltd (-Rs 45) depreciated.
Similarly, significant rise in share price of NDEP Development bank (+Rs 16) failed to lift the Development banking sub-sector (-1.10 percent). Furthermore, the ´Others´ sectors also failed to sustain previous week´s gain as share price of Nepal Telecom (-Rs 8) continued to decline throughout the week.
Amongst news and highlights, NRB has published the monetary policy for the fiscal year 2067/68. The policy stipulates stringent measures for banks and financial institutions targeted at better governance of the sector.
Moreover, on the capital market front, the policy has raised the margin lending rates from 50 percent to 60 percent, encouraged banks and financial institutions (BFIs) and private sector to participate in mutual funds and highlighted the issue about promoter shares being used as collaterals to acquire loans.
In other news, the process for adding new brokers remains uncertain as Shankar Man Singh, general manager of Nepse and member of the stockbroker selection committee, resigned.
On the IPO side, Valley Finance Ltd and Kankai Bikas Bank´s IPO will begin on August 3 and 6 respectively. Gandaki Bikas Bank and Clean Energy Development Bank are closing their books on August 15 and 10 respectively for right shares issue.
Forecast
Technical analysis indicators signal intermittent highs and lows throughout the week; however, a major bear run is likely in the coming weeks as the index might break out of its current support level.
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