The market embarked this week with strong gain, however, it failed to hold the momentum as selling pressure mounted amidst weak investors´ sentiment. The market rallied on the last two trading days, which propelled it into the green zone.[break]
The commercial banking sub-index (4.37%) was the highest gainer amongst all the sub indices as share prices of Nepal SBI Bank (+Rs. 57), Grand Bank Nepal (+Rs.19) and Siddhartha Bank (+Rs.24) appreciated. The ´Others´ sub index (+4.34%) after last week´s downfall ended in green zone this week as Nepal Telecom (+Rs.20) share value increased.
The Hydropower sub-index (+4.17%) continued to rise as share values of Arun Valley Hydropower Development (+Rs.18), Butwal Power (+Rs.24) and Chilime Hydropower (+Rs.33) gained in value. The development banking sub-index (+0.86%) gained marginally as Rara Bikash Bank (+ Rs.8) and Clean Energy Development Bank (+Rs.10) share prices increased. Similarly, the Insurance sub index (+0.18%) followed suit as Shikhar Insurance (+Rs.8) and Guras Life Insurance (+Rs.2) share prices rose.
Nonetheless, the other sectors ended in the losing territory. The finance sub-index (-0.47%) continued with its downward momentum as Om Finance (- Rs.32) and Kaski Finance (-Rs.17) share prices declined and, the Hotels sub index (-0.03%) for the second consecutive week fell as share prices of Oriental Hotels (-Rs.2) lost value.
Amongst news and highlights, NIC Bank and Bank of Asia Nepal have signed a Memorandum of Understanding (MoU) to undergo a merger on Thursday.
Infrastructure Development Bank and Swastik Merchant Finance have merged with each other to convert into a national level development bank; the merged entity is now operating under the name Infrastructure Development Bank Limited.
Meanwhile, Manjushree Financial Institution is holding its 4th AGM on 14th July where it is going to propose 12.50% bonus shares. Seti Bittiya Sanstha has changed its name as Seti Finance Limited. Kailash Bikash Bank (former Annapurna Finance Limited) is selling 22 units of undersubscribed promoter shares and 33,264 of public shares in auction, the deadline for application is 11th July.
Forecast
Technical analysis indicators signal market to continue with current trend, however, strong reversal can be expected as the average weekly turnover has declined by notable 25.64%.
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