The surge was led by the Insurance and the ´Others´ Sector, as investors´ reacted on attractive benefit announcements´ made by the key listed companies. Moreover, the weekly market turnover increased by 11.36 percent as compared to the last week.[break]
The Insurance sub-index (+10.23 percent), for the second consecutive week, was the biggest gainer of the week, as share prices of Nepal Life Insurance (+Rs 237) Life Insurance Corporation Nepal (+Rs 181), National Life Insurance (+ Rs 64) and Shikhar Insurance (+Rs 43) went up. The Hotels sub-index (+4.79 percent) followed suit helped by rise in share prices of Soaltee Hotel (+Rs 19) and Oriental Hotels (+Rs 1). Similarly, the ´Others´ sub-index (+3.47) ended in the green territory, as share price of Nepal Telecom (+Rs 20) increased.
The Commercial banking sub-index (+1.04 percent) continued to impress investors as share prices of Nepal Bangladesh Bank (+Rs 20), NMB Bank (+Rs 11) and Standard Chartered Bank (+ Rs 49) appreciated. Likewise, the Finance sub-index (+1.69 percent) bounced back from its previous week losses as share price of Hama Merchant and Finance (+Rs 11) and Prabhu Finance (+Rs 15) surged. The Development banking sub-index increased marginally as share prices of H&B Development Bank (+Rs 7) and Swabalamwam Development Bank (+Rs 12) rose.
Nonetheless, the Hydropower sub-index (-0.22 percent) ended in red zone, as drop in share prices of Butwal Power Company (-Rs 5) and Arun Valley Hydropower Company (-Rs 1) pulled the sub-index down.
Amongst news and highlights, Central Depository System and Clearing Limited (CDSC) has awarded Depository Participant (DP) license to Nabil Investment Banking and Everest Finance Ltd. Likewise, Nepal Bank shares would be relisted in Nepal Stock Exchange (NEPSE) and would initially be traded In Over the Counter (OTC) market. The share transaction of Everest Insurance Limited has been suspended for inquiry purpose.
As for company announcements, Nabil Bank has proposed to distribute 20 percent bonus shares and 40 percent cash dividend; Standard Chartered Bank has proposed to distribute 15 percent bonus shares and 45 percent cash dividend and Grand Bank Nepal Limited has proposed to distribute 7 percent cash dividend. Likewise, Shree Investment Finance has proposed to distribute 15.79 percent cash dividend; First Microfinance Development Bank has proposed to distribute 15.79 percent cash dividend; Prabhu Finance Limited has proposed to distribute 10 percent bonus shares and Kabeli Bikash Bank has proposed to distribute 10 percent bonus shares. All the above benefits are subject to approval from Nepal Rastra Bank (NRB) and from its respective AGMs.
Bank of Kathmandu (BoK) is holding its 18th AGM on October 12 (book closure: September 24). It has proposed to distribute 5 percent bonus shares and 21.32 percent cash dividend. Unilever Nepal is holding its 19th AGM on October 10 (book closure: September 16). It has proposed to distribute 680 percent cash dividend. Similarly, Citizens Bank International is holding its 6th AGM on October 2; it has proposed to distribute 8.42 percent cash dividend. Similarly, National Hydropower Company is holding its 14th and 15th AGM on October 5.
On the IPO side, Reliance Finance Ltd is issuing 600,000 units of ordinary shares to the general public from September 23.
Forecast:
The market is in an overbuy situation. Technical analysis indicators signal continuation of the current trend only if accompanied by strong volume.
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