The market shed 10.03 points with the key sub indices posting major losses with the benchmark index closing at 460.07 points. Increased selling pressure in key ´financial´ and ´others´ sub sectors dragged the market down with the fiscal year end just around the bend. [break]
The ´others´ sub-sector (-4.61percent) posted the highest loss among all the sub indices as Nepal Telecom (-Rs 27) could not sustain its previous week´s gain. The Finance sector (-2.56 percent) followed the suit, as Birgunj Finance (-Rs 52) and Prabhu Finance (-Rs 42) topped the losers´ list.
Likewise, the Commercial Banking sector (-2.13 percent) plunged as the share prices of key banks like Everest Bank (-Rs 100), DCBL Bank (-Rs 16), and Bank of Asia (-Rs 16) fell.
Similarly, the Development Banking sector (-0.75 percent) also failed to impress investors as the prices of Himchuli Bikas Bank (-Rs 37) declined and Subhechha Development Bank´s price (-Rs 180) dropped post book closure. Furthermore, the Hotels sector (-0.20 percent) also shed value with the decline of Soaltee Hotel´s price (-Rs 1).
Nevertheless, the Hydropower sector (+4.39 percent) managed to defy the market pattern and continued its uptrend backed by a surge in the share prices of Butwal Power Company (+Rs 65) and Arun Valley Hydropower (+Rs 5).
The Insurance Sector (+0.41 percent) booked minimal return as the share prices of United Insurance Company (+Rs 18) ended in the top gainers´ list.
Amongst other market highlights, Nepse halted the process of new stockbroker addition after SEBON initiated investigation into alleged irregularities in the appointment process; Prime Life Insurance´s ordinary shares were listed at Nepse and Bank of Asia Nepal is selling its undersubscribed right shares on auction.
On the declaration front, Infrastructure Development Bank is closing its book on July 30 to issue 1:1.5 right shares. Premier Insurance Company is holding its 15th & 16th AGM on July 26. On the IPO side, application for Bishwa Bikash Bank starts on July 16.
Likewise, SEBON has granted permission to Valley Finance, First Microfinance Development Bank, Garima Bikas Bank and Kabeli Bikas Bank to issue IPOs.
Forecast
Standard Chartered Bank (-Rs 75) and Bank of Kathmandu (-Rs 6) posted the highest turnovers accounting to almost 30 percent of the weekly turnover. Technical analysis signals a continuation of the bearish trend for the coming week backed by the oversell position. However, some retracements can be expected.
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