The growth was led by the Hydropower and the Commercial Banking sub-sectors, which showed strong gains on the last trading week of the fiscal year 2009/10 primarily attributed to investors seeking to close their books with improved returns at the end of the fiscal year. [break]
The total market turnover, however, went down by 4.32 percent, showing low investor confidence. Promoter shares accounted for 11.18 percent of the total trade volume.
The Hydropower sub-sector (+16.35 percent) continued its upward momentum, gaining a substantial 123.86 points as Chilime Hydropower Company (+Rs 173) and Butwal Power Company (+Rs 162) ended among the top gainers´ list.
The Commercial Banking sector (+4.94 percent) bounced back from previous week´s dip as share prices of key banks like Nepal Bangladesh Bank (+Rs 39), Standard Chartered Bank (+Rs 354) and, Nabil Bank (+Rs 224) surged.
Despite Miteri Development Bank (-Rs 44) topping the losers´ list, the Development Banking sub-sector (+1.54 percent) gained value as the share prices of Gurkha Development Bank (+Rs 44) and Infrastructure Development Bank (+Rs 27), which is closing its books on 30th July to issue 1:1.5 right shares, appreciated.
The ´Others´ sub-sector (+0.44 percent) also posted a marginal gain as share price of Nepal Telecom (+Rs 10) went up.
Nevertheless, the Hotels sector (-3.98 percent) continued to decline further, primarily due to the fall in share price of Soaltee Hotel (-Rs 20). Similarly, the Finance sector (-0.55 percent) tumbled as API Finance (-Rs 30) and Maha Laxmi Finance (-Rs 31) ended in the top losers´ list.
The Insurance Sector (-0.54 percent) also plunged as Life Insurance Corporation of Nepal (-Rs 21) and Lumbini General Insurance (-Rs 1) shed value.
Amongst other highlights, Securities Board of Nepal (SEBON) has directed NIDC Capital Markets to return the right shares application amount of the liquidated Nepal Development Bank to its public shareholders. Nilgiri Bikas Banks´ ordinary shares got listed in the secondary market.
On the declaration front, NarayanI National Finance is closing its books from July 30 till August 15 for the purpose of issuing 2:1 right shares. Kasthamandap Development Bank´s 2nd AGM has approved the issuance of 1:1 right shares. SEBON has granted permission to Gandaki Bikas Bank to issue 1:1 right shares.
On the IPO side, SEBON has granted permission to Jyoti Bikas Bank and Himalaya Finance to issue ordinary shares to the public.
Forecast
Technical analysis indicators signal a short term up-trend for the coming week. However, a trend reversal pattern for a sustainable bull run cannot be traced. With low investor sentiment accompanied by weeks of selling pressure, the little hike in the index can be considered as downward retracement.
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