The market also experienced significant decrease in turnover (-30.02 percent), which can be attributed to the news that the overall economy of Nepal will remain stagnant and the growth rate will further stumble to 3.5 percent. [break]
Standard Chartered Bank (+Rs 74) registered the highest turnover for the week and accounting for 10 percent of the total volume. Despite Nepal Credit and Commerce Bank (+Rs 12) regaining its losses from last week, the Commercial Banking sub-index (-3.87 percent) ended the week in the red zone with Global Bank (-Rs 32) and Citizens International Bank (-Rs 49) declining.
Nepal Aawas Bikas Beeta (-Rs 32) dragged down the Development Banking sector (-1.56 percent) despite Malika Bikas Bank (+Rs 18) topped the gainers chart. Likewise, the Finance sector (-0.82 percent) did not fare too well as Pokhara Finance´s (-Rs 74) price readjustment process hit the index.
Similarly, the ´Others´ sector (-10.51 percent) posted the biggest losses amongst the sub-indices as the stock price of Nepal Doorsanchar Company (-Rs 83) readjusted post-book closure.
Conversely, the Hydropower sector (+0.28 percent) managed to defy the market trend due to the appreciation in the share price of Chilime Hydropower (-Rs 35) which was one of the top gainers.
Likewise, the Insurance sector (+0.25 percent) made marginal gains with the climb in the share price of Life Insurance Company Nepal (+Rs 20) and Lumbini General Insurance (+Rs 5). Promoter Shares of Bank of Kathmandu (-Rs.260) and Annapurna Finance (-Rs 325) accounted for 11.75 percent of the market volume.
Amongst other highlights, NMB Bank (-Rs 2) is issuing ordinary shares worth 715,000 units as further public offering. Nepal Housing and Merchant Finance is giving out 20 percent cash dividend and 19 percent bonus shares. Mahalaxmi Finance has extended its 1:3.3 right shares issue date till March 14. Capital Merchant and Finance is giving out 8.42 percent cash dividend.
Prudential Finance is closing its book on March 16 for 10.52 percent cash dividend. Infrastructure Development Bank (-Rs.25) is closing its book on March 22 for 5 percent cash dividend and 10 percent bonus shares.
On the IPO front, Nilgiri Vikas Bank started issuing ordinary shares from March 12, while Prime Life Insurance and Surya Life Insurance closed its IPO issuance this week. Shares have also started trading from Narayanghat.
However, the weakened economy outlook has impacted investors´ confidence and technical analysis shows a lot of volatility indicating that the market will witness a lot of uncertain movements in the coming weeks.
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