Nepse continues bull run

The market climbed this week with the Nepse Index (+1.19%) closing at 545.66 points despite experiencing a series of fluctuations due primarily to the three-day nationwide strike. Moreover, Nepal Rastra Bank´s new set of rules on housing and real estate investments has given the secondary market hopes of captivating potential new investors. [break]



The Commercial Banking sector (+2.16%) was the biggest gainer of the week amongst the sectors in spite of Nepal SBI Bank´s (-Rs 767) price readjustment. Prime Commercial Bank (-Rs 51) which closed its book on December 24 also contributed to the gains in the sector as it registered the highest turnover of the week (Rs 100,502,190) and accounted for 37.79% of the weekly turnover.



The Development Banking sub-index (+1.10%) also made significant gains as Clean Energy Development Bank (+Rs 139) which is issuing 1:2.4 right shares and Sahayogi Bikas Bank (+Rs 74) which closed its book on December 23 for 25% bonus shares and 3:1 right shares booked the top spots in the gainers´ chart.



Similarly, the Finance sub-index (+0.41%) continued its upward trend with increases in the share prices of International Leasing and Finance (+Rs 6) and Lumbini Finance (+Rs 41) which are closing their books on December 26 for 26% cash dividend and on December 27 for 25% bonus shares, respectively.



Despite Arun Valley Hydropower´s (-Rs 205) price readjustment, the Hydropower sector (+0.95%) was able to end the week in the green zone with appreciation in share prices of Chilime Hydropower (+Rs 19) and National HydropPower (+Rs 4). The share prices of Sagarmatha Insurance (+Rs 12) increased, pulling up the Insurance sector (+0.35%). Likewise, the ´Others´ sub-index (+0.20%) also made moderate gains with share prices of Nepal Telecom (+Rs 1) going up.



Among other news, Narayani National Finance completed its merger process. BiratLaxmi Development Bank (+Rs 13) is closing its book on December 27 for 5% cash, 10% bonus shares and 1:1.5 right shares; Bhrikuti Bikas Bank (+Rs 16) is closing its book on December 28 for 10% bonus shares; Lalitpur Finance (Rs 0) is closing its book on December 27 for 50% bonus shares and 2.63% cash dividend; and Global Bank (+Rs 60) is closing its book on January 1 for 2:1 right shares. Meanwhile, 18,820 units of Kaski Finance (+Rs 79) are on sale through auction.



With investors now exploring alternative investments to real estate and investors showing signs of confidence, the market is expected to sustain its momentum. Technical analysis tools also signify an uptrend although a long term uptrend is yet to be confirmed.

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