Similarly, the Development Bank sector (-4.07 percent) suffered due to heavy losses of Madhyamanchal Grameen Bikash Bank (-Rs 9) and Public Development Bank (-Rs 28). The Finance sector (-3.56 percent) also performed weakly as the share prices of Capital Merchant Bank and Finance (-Rs 43) and Merchant Finance (-Rs 109) depreciated. [break]
Hydropower sector (-Rs.1.97 percent) which would usually perform reversely to the banking sub-index also posted loss with the drop in the price of Arun Valley Hydropower (-Rs 40). Nepal Telecom (-Rs 15) share price fell further dragging down the ´Others´ sub-index (-0.45 percent). Insurance sector (-0.01 percent) also changed marginally.
Several companies declared benefits this week. Srijana Finance has proposed 1:2 right shares; Alpic Everest Finance has proposed 20 percent bonus shares and will issue 1:1 right shares on the top of the bonus shares. Union Finance and Siddhartha Finance have proposed 10 percent cash dividend and 20 percent bonus shares respectively, and Lumbini General Insurance has (-Rs 8) declared 5 percent cash dividend.
Quite a few companies revealed plans to upgrade. While Nepal Share Market announced plans to upgrade into a Commercial Bank; Business Development Bank said it would upgrade to a national level development bank.
Bageshwori Development Bank has declared to upgrade itself into a commercial bank by fiscal year 2015/16 by merging with Purwanchal Development Bank and Shangrila Development Bank. Pashupati Development Bank (-Rs 5) will issue 1:2.5 right shares and convert from a regional to a national development bank.
Similarly, Annapurna Bikash Bank´s shares will not be traded in the market from April 23 until the approval process to upgrade into a full-fledged development bank.
Several new companies -- Asian Life Insurance (3,600,000 units) Resunga Development Bank (306,000 units) and Pathibhara Development Bank (500,000 units) -- got listed in Nepse this week.
DCBL Bank´s 58,951 units of undersubscribed right shares are on sale in auction.
Forecast:
The government has announced that the national budget will be out by the first week of June, 2010.
The Ministry of Finance has permitted Nepse to add more share broker companies. This might bring about a positive change in the market in the long term. However, considering the immediate situation, technical analysis shows a major downtrend.
Lot of supply pressure persists as investors are continuing to exit out of the market. The marginal spike in volume and a dip in the prices is also another indicator of a bearish sign.
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