KATHMANDU, July 27: Nepal Stock Exchange (Nepse) index posted gains for the second consecutive week in fiscal year 2012/12, gaining 6.08 points to close at 401.54 points on Thursday.
The rise in the benchmark index was led by the ´Others´ and the Hydropower Sector. Likewise, the weekly market turnover has increased by 24.54 percent compared to last week.
The ´Others´ sub-index (+2.97 percent) was the biggest gainer of the week, as share prices of Nepal Telecom (+Rs 15) surged. The Hydropower sub-index (+2.93 percent) continued its gaining streak helped by rise in share prices of Chilime Hydropower (+Rs 86), National Hydropower (+Rs 1) and Arun Valley Hydropower (+Rs 3).
The Commercial banking sub-index (+1.47 percent) followed suit, as share prices of Nabil Bank´s promoter shares (+Rs 77), Himalayan Bank (+Rs 40) and Nepal Investment Bank (+Rs 30) posted impressive gains. The Development banking sub-index (+0.82 percent) also ended in the green zone, as share prices of Karnali Development bank (+Rs 17), Pathibhara Bikash Bank (+Rs 15) and Nilgiri Bikash Bank (+Rs 19) increased. Likewise, the Insurance sub-index (+0.08 percent) posted marginal gains as share values of Prime Life Insurance (+Rs 11) and Life Insurance Co Nepal (+Rs 30) surged.
Nonetheless, the Finance sector (-0.59 percent) stumbled this week as well, as drop in share prices of Hama Merchant & Finance (-Rs 27) and International Leasing and Finance (-Rs 22) among others pulled its sub-index down.
Amongst news and highlights, Nepal Rastra Bank (NRB) has unveiled Monetary Policy 2012/13. The major targets of the policy are to achieve GDP growth rate at 5.5 percent and control inflation at 7.5 percent.
The central bank has emphasized more on mergers and acquisitions, corporate governance and deprived sector lending. Royal Merchant Banking & Finance, Rara Development Bank and Api Finance have signed a Memorandum of Understanding (MoU) for their merger. Likewise, Nepse is making an amendment to the Listing Bylaws which would make the listed companies compatible to the newly operational Central Depository System and Clearing Ltd (CDSCL).
The Nepse board has already approved the amendments; it would come into force after Securities Board of Nepal (Sebon) endorses it. Similarly, Finance Minister Barsha Man Pun inspected this week inspected the CDSCL and expressed satisfaction over the services provided by it. Rastriya Banijya Bank (RBB) will soon be raising an additional Rs. 3.36 billion through conversion of special drawing rights (SDR) and irredeemable preference shares to further replenish its capital.
As for company announcements, Gurans Life Insurance is holding its 4th AGM on August 15 (book closure: July 29).
Forecast:
Technical analysis indicators signal market to continue with the current trend if accompanied by volume arising from positive developments.
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