The Finance sub-index (-0.94 percent) was the biggest loser of the week as Himalayan Finance (-Rs 13) and Reliable Finance (-Rs 17) ended among the top losers of the week. The Hydropower sub-index (-0.67 percent) failed to sustain its previous week´s gain as share prices of National Hydropower Company (-Rs 1), Chilime Hydropower Company (-Rs 6), and Arun Valley Hydropower Company (-Rs 3) declined. The Development banking sub-index (-0.54 percent) followed suit as share prices of Rara Bikas Bank (-Rs 37), Diyalo Bikas Bank (-Rs 8), and Tinau Development Bank (-Rs 6) toppled. [break]
Similarly, the Insurance sub-index (-0.30 percent) shed value as share prices of Lumbini General Insurance Company (-Rs 10), and Prime Life Insurance Company (-Rs 4) went down. Likewise, the Commercial Banking sub-index (-0.23 percent) continued with its downward spiral as share prices of Nepal Bangladesh Bank (-Rs 13), KIST Bank (-Rs 10), Kumari Bank (-Rs 12) and DCBL Bank (-Rs 5) depreciated. Nonetheless, the ´Others´ sub-index (+0.45 percent) ended in green zone as share price of Nepal Telecom (+Rs 2) rose.
Among news and highlights, the share trading of Asian Life Insurance Company (ALICL) has been suspended by Nepse and the Insurance Board (IB) has instructed ALICL to immediately return the money it has already distributed as cash dividends (28.15 percent). Nepal Bank Limited is preparing to issue 1:9.5 right shares to its existing shareholders as it has got approval from the regulator.
As of company announcements, the 11th AGM of Kumari Bank has approved 8 percent bonus shares to its shareholders. Life Insurance Corporation Nepal is holding its 10th AGM on Feb 27 (book closure: Feb 11). General Finance is holding its 14th and 15th AGM on Feb 24 (book closure: Feb 9), it will propose 163,001 units of bonus shares from the earnings of fiscal year 2009/10, and 189,607 units of bonus shares from the earnings of fiscal year 2010/11, and it will also propose 4:1 right shares. Similarly, Public Development Bank is holding its 5th AGM on Feb 22 (book closure: Feb 9), and Annapurna Bikas Bank is holding its 7th AGM on Feb 22 (book closure: Sept 8, 2011).
Forecast
Recent weekly volumes are lower than the average, indicating lower confidence of investors. Technical analysis indicators signal continuation of the current trend.
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