The ´Others´ sub-index (+7.52 percent) was the biggest gainer of the week, as share price of Nepal Telecom (+Rs 41) soared up. [break]
Similarly, the Insurance sub-index (+5.16 percent) impressed investors helped by rise in share prices of Shikhar Insurance Company (+Rs 71), Asian Life Insurance (+Rs 32), and Surya Life Insurance (+Rs 21). The Hotels Index (+2.95 percent) followed suit as share prices of Oriental Hotels Limited (+Rs 6), Soaltee Hotel (+Rs 8) and Taragaon Regency Hotel (+Rs 3) increased. Likewise, the Hydropower sub-index (+1.95 percent) continued with its upward momentum as Arun Valley Hydropower (+Rs 14) and Butwal Power Company (+Rs 13) in the green zone. The Commercial banking sub-index (+0.24 percent) too managed to end on a green territory as share values of Nepal Bangladesh Bank (+Rs 12), Grand Bank Nepal (+Rs 10) and Kumari Bank (+Rs 12) appreciated.
The Development banking sub-index (-0.29 percent) slid as share prices of Professional Bikas Bank (-Rs 8) and Subheccha Bikas Bank (-Rs 12) tumbled. Similarly, The Finance sub-index (-0.26 percent) shed value as share prices of Hama Merchant and Finance (-Rs 50) and Nepal Finance (-Rs 6) decreased.
Amongst news and highlights, the merger process between Vibor Bikas Bank and Bhajuratna Finance and Savings Company has been completed. The merged entity will operate under the name “Vibor Bikas Bank Limited”.
As for company announcements, Bank of Kathmandu has proposed to distribute 21.32 percent cash dividend and 5 percent bonus shares and Citizens Bank international has proposed to distribute 8.42 percent cash dividend to its shareholders. All the above benefits are subject to approval from NRB and their respective AGMs. Kankai Bikas Bank, Bageshwori Development Bank and Nava Durga Finance Company have allotted their 150 percent, 250 percent and 20 percent rights shares, respectively. Bageshwori Development Bank is selling 294 units of undersubscribed promoter right shares, and 46,149 units of undersubscribed public rights shares via auction; the deadline for application is September 9.
Forecast:
The average daily market turnover has increased by 20 percent as compared to the previous week. Technical analysis indicators signal continuation of the current trend if accompanied by a strong volume. However, the market is approaching an over buy situation.
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