Shares of all leading commercial banks saw erosion in their values, with Nabil Bank losing the most. Shares of Nabil, which opened at Rs 1,746 on Sunday, fell to 1,728 by Thursday. Likewise, Standard Chartered Bank Nepal closed at Rs 1,801 on Thursday, down from Sunday´s 1,810, while shares of Everest Bank dipped Rs 9 over the week to close at Rs 1,531 on Thursday. Shares of Nepal Investment Bank and Himalayan Bank shed Rs 4 and Rs 10, respectively, to close at Rs 720 and Rs 710.
Among others, shares of Nepal Telecom -- the most valuable listed firm -- also shed Rs 10 over the week to close at Rs 525, while Chilime Hydropower saw erosion of Rs 8 (to Rs 1,137) in its share value. [break]
“Selling pressure is gradually increasing on the stock market lately,” Stockbroker Anjan Poudel told Republica. “This is largely due to launch of initial public offering (IPO) by Mega Bank and the ongoing sales of rights shares by Nepal Bank Limited.”
Mega´s public floatation -- dubbed one of the most successful in Nepal´s IPO history -- had mopped up over Rs 15 billion from the primary market. “The market will become more liquid once this money is released,” Poudel said.
At the same time, many investors are also arranging funds to purchase rights shares floated by state-run Nepal Bank, for which many have started selling shares they own. “Besides, year-end pressure is also building on investors, as many, who took loans to purchase stocks, will have to clear the interest by mid-July,” Poudel said.
These reasons caused weekly trading amount to stand at Rs 294.49 million, up 4.16 percent than in last week but lower than that of previous weeks.
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