In the primary market, Vibor Development bank is set to open its IPO to the general public on June 10.
Meanwhile, Citizens International Bank and Bank of Asia were listed on the stock exchange this week and will begin trading next week.
Among the sectors, the Development Banking sector was the only sector to advance this week (+1.68%). The upswing in the index was driven by the top two gainers of the week - Clean Energy Development Bank, and Malika Bikash Bank which announced the issuance of 20% bonus shares and 1:3 rights shares. The remaining sectors edged down with the ´Others´ sector (-5.74%), declining the most due to a decrease of Rs. 35 in Nepal Telecom´s share price after rising inexplicably last week. This largely contributed to the fall in the NEPSE this week. After rising briefly last week, the Hydropower sector declined by 3.07% as all three hydropower companies registered losses. The Commercial Banking sector shed 2.64% as well.
The Insurance and Finance sectors fell by 0.99% and 0.14% respectively. Decline in the Finance sector was driven by a 29.43% fall in the price of Prabhu Finance, whose share price readjusted after a book closure for 2:1 rights shares. Lumbini Finance also contributed to the sector´s decline. Losses in the sector were, however, kept to a minimum due to increases in the share prices of Fewa Finance (+9.88%), Annapurna Finance (+8.84%) and Kuber Merchant Bittya Sanstha (+8.50%). All three have announced issuance of rights shares in the future.
The total market turnover decreased this week by 5.67% mainly due to a nationwide shutdown on Monday. The secondary market might continue to witness a temporary decline in activity next week as investors shift focus to IPO issuance by Vibor Bikas Bank and Chilime Hydropower. Nepal Development Bank´s liquidation could make investors more cautious over their investments.
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