The average daily market turnover remained fairly consistent with the reduction in total volume (-24.05 percent) attributed primarily to the floor opening for only four days this week. [break]
The ´Others´ sub-sector (+5.76 percent) posted the highest gain among all the sub-indices as share value of Nepal Doorsanchar Company (+Rs 26) bounced back from previous week´s loss.
Similarly, the Hotels sector (+2.78 percent) surged as the share price of Soaltee Hotel (+Rs 9) went up. The Hydropower sector (+2.42 percent) followed suit with the share prices of National Hydropower Company (+Rs 4), and Butwal Power (+Rs 48) going up.
Furthermore, the Commercial Banking sector (+0.98 percent) was able to entice investors as the share prices of key banks like Siddhartha Bank (+Rs 41), Everest Bank (+Rs 120), and Laxmi Bank (+Rs 25) gained value.
However, the Development Banking sector (-0.97 percent) plunged as the share price of Subhechha Development Bank (-Rs 36), and Himchuli Bikas Bank (-Rs 21) depreciated. The Finance sector (-0.79 percent) failed to impress investors further as Birgunj Finance (-Rs 60), Prudential Finance (-Rs 25) and Patan Finance (-Rs 19) topped the losers´ list.
Despite the share price of United Insurance Company (+Rs 18) ending among the top gainers list, the Insurance sector (-0.55 percent) plunged as the share price of Asian Life Insurance (-Rs 12), and Life Insurance company Nepal (-Rs 4) tumbled.
Bank of Kathmandu (+Rs.11) posted the highest turnover of Rs 15,799,406 this week followed by Standard Chartered Bank (-Rs 10) with Rs. 12,938,966.
Amongst other highlights, Nepal Rastra Bank has added companies and institutions licensed to do securities related transactions namely, insurance companies, insurance agents, surveyors and brokers under the Anti-Money Laundering Act.
Furthermore, the old bonus share directive (2058) has been replaced by the new bonus shares directive (2067) from Tuesday.
The new directive consists of regulatory changes to give out bonus shares, which includes amongst others, period of profitability of the company, regulation changes for companies with debentures and government liabilities, changes in time period for informing Securities Board of Nepal (SEBON) and Nepal Stock Exchange, and regulations regarding source of capital and provisions to distribute bonus shares.
On the declaration front, Samjhana Finance is holding its special general meeting on 14th July and will propose 1:2 right shares. SEBON has granted permission to Narayani National Finance and Clean Energy Development Bank to issue 2:1 and 1:2.4 rights shares respectively.
Forecast
Technical analysis indicates a volatile trading week accompanied by short term gains. Trend reversals for a long term uptrend cannot be seen.
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