The market showed some signs of resistance during the week. However, it failed to gain any momentum as investors´ appetite for risk remains weak. [break]
Moreover, the weekly market turnover increased by 15.09 percent, the trading of Chilime Hydropower Company shares contributed to almost 37 percent of the total weekly turnover.
The Hydropower sub-index (-3.12%) for the third consecutive week was the biggest loser as share prices of Chilime Hydropower Company (-Rs.46) and National Hydropower Company (-Rs.4) tumbled. The Insurance sub-index (-1.34%) followed suit as share prices of Nepal Insurance Company (-Rs.42) and Rastriya Beema Sansthan (-Rs.128) descended. Similarly, the Development banking sub-index (-1.08%) slid as share prices of Shangrila Development Bank (-Rs.35) and H&B Development Bank (-Rs.15) went down.
Likewise, the Commercial banking sub-index (-0.52%) toppled as share prices of Everest Bank (-Rs.74), Nepal Industrial & Commercial Bank (-Rs.21), and NMB Bank (-Rs.7) declined. Also, the Finance sub-index (-0.39%) dipped slightly as share prices of Reliable Finance (-Rs.15) and Sagarmatha Merchant Banking & Finance (-Rs.10) slumped. The ´Others´ sub-index didn´t fluctuate as share price of Nepal Telecom remained stable.
Amongst news and highlights, Nepal Industrial Development Corporation has changed its name as NIDC Development Bank. Securities Board of Nepal (Sebon) is conducting investors´ education & awareness training program from December 11 for interested investors. Likewise, Sebon has granted license to three new additional stock brokers to operate stock broker business. With the addition, the number of stock brokers has reached 47, including 24 new stock brokers.
As of company announcements, Everest Finance has proposed to distribute 20 percent cash dividend and NDEP Development Bank has proposed to distribute 6.650 percent bonus shares. Similarly, Alpine Development Bank has proposed to distribute 9 percent cash dividend to its shareholders. (All the above-mentioned benefits are subject to approval from their respective regulatory bodies and their AGMs). NMB Bank is holding its 16th AGM on December 18 (book closure: December 4). It is likely to propose 9 percent cash dividend to its shareholders. Likewise, Nabil Bank is re-conducting its suspended 27th AGM on December 9. The bank has proposed 30 percent cash dividend to its shareholders.
Forecast
Technical analysis indicators signal continuation of the current trend. However, some retracements can be expected as the market is approaching an oversell situation.
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