Despite Siddhartha Bank (+Rs 27), NMB Bank (+Rs.17) and Lumbini Bank (+Rs.34) topping the gainers chart, the Commercial Banking sub-index (-2.29%) made a major descent as leading banks like Nabil Bank (-Rs 75) and Standard Chartered Bank (-Rs128), which registered the highest turnover, ended the week in the red. [break]
Likewise, the Development Banking sector (-3.27%) posted the biggest loss amongst the sub-indices for the second consecutive week with Paschimanchal Bikas Bank (-Rs 366) and Annapurna Bikash Bank (-Rs 211) experiencing price readjustment post book closure. Similarly, the Finance sector (-2.05%) continued its downward trend as Peoples Finance Promoter Shares (-Rs.230), which traded after a long hiatus, plummeted.
Depreciation in share values of Arun Valley Hydro Power (-Rs.67) and National Hydro Power (-Rs.5) hit the Hydropower sector (-1.31%) while the Others group (-0.21%) failed to impress as Nepal Doorsanchar Company (-Rs.25) shed value. The Insurance sector (-0.07%) also did not fare well due to decrease in share values of Siddhartha Insurance (-Rs.10) and Shikar Insurance (-Rs.25).
Amongst other highlights, NRB has rejected investors´ demand to lift margin lending. At a discussion organized by the Ministry of Finance, NRB sided with banking institutions which are in favor of converting 19 percent promoter shares to public shares while share investors backed by Nepse opposed the proposal.
Meanwhile, news that the liquidity crunch is not likely to abate for another few months made the rounds. Kathmandu Finance (-Rs.63) is going to propose 3:1 right shares and 20 percent bonus shares, Bhajuratna Finance and Savings is going to propose 5:2 right shares in their respective AGMs.
Triveni Bikas Bank (-Rs.41) is closing its book on February 8 for 1:1 right shares while Yeti Finance is closing its book on February 15 for 1:1 right shares. Om Finance (-Rs.7) is selling 430 units of right shares on auction from February 11.
Capital Merchant Banking and Finance has been suspended by the Nepse due to false reporting of its book closure date.
On the IPO front, Manakamana Bikash Bank got approval from SEBON to issue ordinary shares. With low traded volumes indicating low investor confidence, a reversal is not likely yet.
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