The Commercial Banking sub-index (-1.12%) continued to perform dismally as key banks like Everest Bank (-Rs 85) and Standard Chartered Bank (-Rs 75) which registered the highest turnover (Rs 15, 508,464) shed value. Despite Samjhana Finance (+Rs 27) being the top gainer of the week, the Finance Sector (-2.50%) failed to impress with Prudential Bittiya Sanstha (-Rs 259) and NIDC Capital Market (-Rs 73) experienced heavy losses. However, the Development Banking sector (+0.31%) made gains with increase in the share value of Gurkha Development Bank (+Rs 44), which is issuing 2:1 right shares. [break]
Likewise, the Hydropower sector (+0.79%) was the biggest gainer amongst the sub indices with appreciation in share price of National Hydropower (+Rs 5). On the other hand, the Insurance sector (-1.04%) ended the week in the red zone with decline in share prices of Life Insurance Company Nepal (-Rs 26) and National Life Insurance Company (-Rs 10). Similarly, fall in the stock price of Nepal Telecom Company (-Rs 2) which announced lucrative 30% cash dividend denied an uptrend in ´Others´ sub-index (-0.39%).
The major highlight of the week was Bombay Stock Exchange´s interest in investing in Nepse. News also developed that promoters of a company will no longer be able to purchase ordinary shares of their own company. Furthermore, the central bank issued the largest-ever repo worth Rs 10 billion, of which only half was subscribed. NRB has also imposed 40% cash margin on gold imports. SEBON has announced plans to launch a new website dedicated to information on Nepse-listed stocks.
Among declarations, Capital Merchant Banking & Finance (-Rs 26) is closing its book on 11 February for 1:1.5 right shares. International Leasing and Finance Company (-Rs 5) has announced plan to become a commercial bank. Technical analysis indicators show that the market is experiencing an oversell position which can be interpreted favourably toward investors if they can pick up undervalued stocks.
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