Laxmi Bank (-Rs 49) and NMB Bank (-Rs 35), whose Further Public Issuance (FPO) was undersubscribed, were the key companies to bring the Commercial Banking sub-index (-0.99 percent) down. Similarly, the Finance sector (-1.39 percent) also declined with the decrease in the share prices of Kaski Finance and Gorkha Finance. [break]
Hydropower sector (-0.03 percent) followed suit as the stock price of Chilime Hydropower (-Rs 23), which posted the top turnover for the week, dropped. Likewise, the ´Others´ sub-index (-4 percent) plunged as Nepal Telecom Company (-Rs 21) shed value.
However, the Development Banking sector (+1.80 percent) climbed up this week helped by the rise in the prices of Gurkha Development Bank (+Rs 76) and Malika Bikash Bank (+Rs 15).
Strong performance of Rastriya Beema Sansthan (+Rs 89) positively impacted the Insurance sector (+0.79 percent).
Nepal Rastra Bank has announced that it will take relevant steps to facilitate the entrance of Non-Resident Nepali (NRN) investors in the capital market. The central bank approved the Letter of Intent (LOI) of Civil Bank and also announced that it will tighten the procedure for establishing new banks and financial institutions.
Amongst declarations, Siddhartha Finance will be giving out 20 percent bonus shares. On the IPO front, Agricultural Development Bank´s IPO was oversubscribed by 2.5 times. Zenith Finance closed its IPO on 7 April.
Forecast: The market turnover increased by 8 percent this week. Increase in volume with decrease in prices signal a further downtrend. Technical analysis tools have not generated any reversal signals per se, hence the downtrend persists.
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