NTC, key commercial banks lift Nepse

The Nepse index (+5.95 percent), which had been brought to a standstill last week by the agitating investors, recommenced trading this week with the market ending a long run of dismal performances with the benchmark index closing at 514.04 points. With the central bank allowing banks to raise the margin call limit to 60 percent along with renewal of loans if 25 percent of the principal have been paid, the investors´ confidence was revitalized.



Moreover, Securities Board of Nepal (SEBON), which will not allow the conversion of the 19 percent promoters´ share to ordinary shares, further added to the cause. This week also saw the market experiencing significant increase in turnover by 78.31 percent with Standard Chartered Bank (+Rs190) registering the highest turnover for the week. [break]



The Commercial Banking sub-index (+4.94 percent) ended the week in the green zone with key banks like Nabil Bank (+Rs 215) and Bank of Kathmandu (+Rs 66) gaining share values. Despite, Triveni Bikas Bank´s (-Rs 49) murky performance, the Development Banking sector (+2.03 percent) continued to post gains with the increase in share price of Infrastructure Development Bank (+Rs 32), which announced 10 percent bonus shares and 5 percent cash dividend.



In spite of Nepal Sri Lanka Merchant Banking and Finance (-Rs 13), which resumed trading after a long hiatus, losing share values, the Finance sector (+0.81 percent) managed to make marginal gains with Capital Merchant Banking and Finance (+Rs 22) being one of the top gainers for the week. Likewise, the Others sector (+10.52 percent) posted the biggest gains amongst the sub indices with Nepal Doorsanchar Company (+Rs 77) topping the gainers´ chart.



However, the Hydropower sector (-1.14 percent) declined despite National Hydro Power´s (+Rs 6) resurgence with Chilime Hydropower (-Rs 45) shedding value. Similarly, the Insurance sector (-0.23 percent) failed to shine with depreciation in share price of Himalayan General Insurance (-Rs 4).



Among other highlights, stock trading from Pokhara has been initiated. Nepal Rasta Bank published the names of ten commercial banks that mismanaged liquidity (cash), which resulted in the liquidity crisis in the nation´s banking system. Narayani Development Bank is issuing 1:1 right shares and 25 percent bonus shares while Everest Insurance will propose 20 percent cash dividend in its annual general meeting.



Royal Merchant Banking and Finance is issuing 1:1 right shares. International Leasing and Finance allotted 2:1 right shares, while Kuber Merchant Banking and Finance (+Rs 5) is selling 6,940 units of right shares on auction. On the IPO front, Nilgiri Bikas Bank is issuing ordinary shares from March 12.

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