The Commercial Banking sub-index continued to tumble (-4.51%) as major banks like NICB Bank (-Rs 160) which is readjusting its share value post-book closure and Prime Commercial Bank (-Rs 90) shed values. Api Finance (-Rs 78) and United Finance (-Rs 60) which closed its book on December 4, for 12.5% bonus shares and 0.65% cash dividend pulled the Finance sub-index down (-1.58%). Subhechchha Bikas Bank´s share price appreciated (+Rs 14) but with losses in the majority of the development banks, the sector index declined (-3.24%). Life Insurance Company (-Rs 13) and Nepal Life Insurance (-Rs 14) posted declines to drag the Insurance sector down (-0.93%).The ´Others´ sub-index also slipped (-1.38%) as Nepal Telecom Company shed (-Rs 7) value. Despite appreciation in share price of Butwal Power Company (+Rs 9) which proposed 20% cash dividend, 10% bonus shares, and 3:2 right shares to its shareholders, the Hydro Power sector sub-index plunged (-1.61%) as the other three companies in the sector registered losses.
Standard Chartered Bank (-Rs 181) was awarded the "Bank of the Year 2009" award for Nepal. Anil Shah has moved from Nabil Bank (-Rs.12) to Megha Bank as the chief executive officer. On the IPO front, Resunga Bikash Bank opened its IPO of 91,800 units while the result for the allotment of Miteri Development Bank was published on December 1. Udhyam Bikas Bank will open its IPO of 150,000 units from December 13 onward. As the market remained closed on Sunday and Wednesday, there was a sharp decline in the total turnover (Rs 147, 775,285), along with a 11% decline in average daily turnover. With the book closure of the Bank of Kathmandu (-Rs 5) on December 11 for 40% bonus shares and 7.37% cash dividend shed prices, we expect the benchmark index to descend further as supported by the signals exhibited by technical analysis.
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