The Commercial Banking sub-index (+0.34%) managed to defy the market trend due to the recovery in the share prices of key banks like Everest Bank (+Rs 38) and Nabil Bank (+Rs 40). Likewise, the Hydropower sector (+0.78%) fared well with increase in share values of Butwal Hydropower (+Rs 32) and Arun Hydropower (+Rs 9). Similarly, the Insurance sector (+0.07%) made marginal gains with share price of Life Insurance Company Nepal (+Rs 6) appreciating. However, the Development Banking sector (-2.46%) posted the biggest loss amongst the sub indices as Vibor Vikas Bank (-Rs 9), which registered the highest turnover for the week, shed value.
Despite Union Finance (+Rs 45), Api Finance (+Rs 21), and Merchant Finance (+Rs 19) topping the gainers chart, the Finance sector (-2.33%) continued its downward trend; share prices of Capital Merchant Banking and Finance (-Rs 370) and World Merchant Banking and Finance (-Rs 75) depreciated. Similarly, the ´Others´ sector (-2.04%) ended the week in red due to decrease in share value of Nepal Telecom Company (-Rs 10).
Amongst other highlights, NRB filed fraud charges against chief executives of Public Development Bank and Infrastructure Development Bank (-Rs 32). Standard Finance (-Rs 5) is issuing 1:1 right shares while Kathmandu Finance (-Rs 5) has proposed 3:1 right shares and 20% bonus shares. Likewise, Gurkha Finance (Rs 0) has proposed 1:1 right shares and 15% bonus shares. Universal Finance (-Rs 45) listed 12,175 units bonus shares and 589,928 units of right shares. On the IPO front, City Development Bank is issuing its public shares on February 2. With the limited mobilization of cash by banks, the market can be expected to continue its bearish mode. This is further corroborated by signals from technical analysis which indicates that the market with low traded volumes does not show any signs of uptrend.
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