Most stocks have managed to perform relevantly well even after book closures, as buying pressure in the market continued to pull the market up. [break]
The Others Sector (3.28 percent) posted the highest gain among the sub-indices as the share price of Nepal Telecom (+Rs 14) appreciated. The Commercial Bank sector (3.12 percent) followed suit as Bank of Kathmandu (+Rs 40), Nepal Investment Bank (+Rs 34) and Citizen Bank (+Rs 14) gained value this week.
The Hydropower (1.12 percent) sub-index also went up as the share prices of Arun Valley Hydro Development (+Rs 38) and Chilime Hydro Power Co (+Rs 14) rose.
However, the Finance sub-index (-2.03 percent) lost considerably, as share prices of Prabhu Finance (-Rs 73), Standard Finance (-Rs 26) and Butwal Finance (-Rs 50) shed value. The Insurance Sector (-0.69) also did not fare better as Surya Life Insurance Company (-Rs 67) ended as the top loser this week.
Meanwhile, Sewa Development Bank (-Rs.43), Manakamana Development Bank (-Rs.14) and Gurkha Development Bank (-Rs.28) pulled the Development Sector (-0.52 percent) down.
Amongst news and highlights, Securities Board of Nepal (SEBON) has implemented the Central Depository System regulations from October 6, following its approval by the Ministry of Finance.
Arun Valley Hydropower´s share trading was halted for two days after it distributed 25 percent cash dividend to its promoters without SEBON´s approval. It has also been accused of trading with insider information as it had withheld benefit declarations that could have affected the secondary market.
However, its share trading resumed after it publicly announced to give out 10 percent bonus shares and 37 percent cash dividend from the fiscal year end earnings.
On the declaration front, NCM Mutual Fund is distributing 15 percent cash dividend to its unit holders. DCBL Bank has decided to give 10 percent bonus shares.
Similarly, Global Bank and NIC Bank have announced to give 5 percent and 26.32 percent cash dividend respectively. Mahalaxmi Finance Ltd has decided to distribute 7.75 percent cash dividend from the earnings of fiscal year 2009/10.
Chimmek Bikash Bank is holding its 9th AGM on October 31. It is giving away 50 percent bonus shares for which it is closing its book from October 12 to 30. KIST Bank is holding its 9th AGM on October 30. It has announced to give 5 percent cash dividend for which it is closing books from October 12 to 30.
ICFC Finance is holding its 7th AGM on October 31. The company has proposed to give 15 percent cash dividend for which it is closing book from October 10 to 31.
United Finance Ltd is closing its books from October 11 to 27 for its 16th AGM scheduled on October 27. IT has proposed to give 13.16 percent cash dividend. Nirdhan Uthhan Bank is issuing 2:1 right shares from October 22 to November 25. Likewise, Reliable Finance is closing its book October 25 for 1:1 right issue.
Forecast
Technical analysis indicators signal short term uptrend for the coming week as the market has surpassed the oversell position and buying pressures have increased in key sectors.
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