Stock Market News Pick of the Week
And the stock market sees a steep decline not only in terms of value but also in terms of transaction. Why so? May be the institutional investors are on a wait and watch mode esp. since the mid-term Monetary Policy is due next week. Or something else? Read all the major updates from Nepal's share market.
NEPSE sees a steep decline with 88.69 points drop this week
This week, the Nepal Stock Exchange (NEPSE) was sent spiraling down as the index experienced a massive drop of 88.69 points (4.01%) to close at 2094.54 on Thursday.
The stock market tumbled with double-digit losses each day of the week, except for Wednesday's modest uptick of 4.97 points. As of late, the activity level of institutional investors in the market has been limited, with only individual investors appearing to be actively participating. This is evidenced by the weekly turnover, which has been recorded at only Rs.12.84 billion this week. This figure is significantly lower compared to the weekly turnover of more than Rs. 20 billion that was seen last month, when the Nepal Stock Exchange (NEPSE) was in an upward trend following the appointment of the new finance minister.
The forthcoming mid-term Monetary Policy Review by the Nepal Rastra Bank will have a significant impact on the market as the policies adopted in margin lending will likely determine the entry/exit of institutional investors and shape the future direction of the NEPSE.
Sector-wise Index Outlook of the week
Sectors | Opening Index | Closing Index | Percentage change |
Investment | 69.37 | 64.34 | -7.25 |
Finance | 1851.13 | 1722.5 | -6.95 |
Hydropower | 2727.52 | 2588.99 | -5.08 |
Microfinance | 4822.74 | 4583.72 | -4.96 |
Development Bank | 3849.9 | 3662.66 | -4.86 |
Non life insurance | 9488.4 | 9065.74 | -4.45 |
Others | 1562.85 | 1494.08 | -4.40 |
Hotel & tourism | 3375.36 | 3228.11 | -4.36 |
Trading | 2337.28 | 2235.57 | -4.35 |
Life insurance | 11025.11 | 10661.69 | -3.30 |
Mutual Fund | 14.86 | 14.44 | -2.83 |
Commercial Bank | 1401.14 | 1363.13 | -2.71 |
Manufacturing & Processing | 5239.76 | 5126.39 | -2.16 |
Loosen Your purse, it's time to join the IPO Frenzy!
Shuvam Power Limited is offering 4,81,882 shares to the general public with a face value of Rs.100.The public offering will be open until Magh 22. Read our analysis on the company here.
Subsequently, from Magh 23 to Magh 26, Supermai Hydropower Limited will issue 4,15,000 shares to the public at a face value of Rs.100.
Asian Hydropower Ltd. will follow suit by issuing 6,97,200 shares to the public on Magh 27th, also at a face value of Rs. 100.
Top Performers of the week
S.No. | Top Gainers | Opening price this week | Closing Price this week | Percentage gained |
1. | Adarsha Laghubitta Bittiya Sanstha Limited (ADLB) | 1197.9 | 1928.9 | 61.02% |
2. | Lumbini General Insurance Co. Ltd. (LGIL) | 420.2 | 538.9 | 28.25% |
3. | Barahi Hydropower Public Limited (BHPL) | 486.2 | 573 | 17.85% |
4. | Eastern Hydropower Limited (EHPL) | 410.5 | 477 | 16.20% |
5. | Sayapatri Hydropower Limited (SPHL) | 439.9 | 492.9 | 12.05% |
S.No. | Top losers | Opening price this week | Closing Price this week | Percentage lost |
1. | Ridi Power Company Limited (RIDI) | 568 | 360.09 | -36.46% |
2. | Nerude Laghubitta Bittiya Sanstha Limited (NLBBL) | 1030 | 760.1 | -26.20% |
3. | Shikhar Insurance Co. Ltd. (SICL) | 960 | 773 | -19.48% |
4. | Sagarmatha Insurance Co. Ltd. (SIC) | 910 | 759.6 | -16.53% |
5. | Arun Valley Hydropower Development Co. Ltd. (AHPC) | 351 | 293 | -16.52% |
More IPOs approved by SEBON
Securities Board of Nepal has approved the Initial Public Offerings (IPO) proposals of Dolti Power Company Ltd. & Bhugol Energy Development Company Ltd .
Dolti Power Company Ltd.(DPCL) will now issue 16,09,458 units of shares at par value of Rs.100 each. DPCL operates a 4.5-MW Padam Khola run-of-river Hydropower Project in the Dailekh district of Karnali province.The project began commercial operations on December 24, 2019.
Similarly, Bhugol Energy Development Company will now issue 16,32,160 equity shares at a par value of NPR 100 each. The company operates a 3.75-MW Dwari Khola Small Hydropower Project, in Dailekh District of Karnali Province. The project started commercial operations on May 6, 2017.
IPOs added to SEBON’s pipeline
Mid-Solu Hydropower Ltd & Manakamana Engineering Hydropower Ltd. have applied to SEBON for IPO and thus have been added by SEBON to its pipeline.
Mid- Solu Hydropower Ltd has applied for permission to float 14,96,800 shares to the general public at face value of Rs.100 each.
Similarly, Manakamana Engineering Hydropower Ltd. has also sought SEBON’s approval to issue 28,00,000 shares at a face value of Rs.100 each.
Dividends announcements this week
S.N. | Name of the Companies | Bonus Shares | Dividend Tax (withheld and paid by the Company on shareholder’s behalf) | Total Distribution |
1. | Civil Laghubitta Bittiya Sanstha Ltd. (CLBSL) | 11% | 0.58% | 11.58% |
2. | Upakar Laghubitta Bittiya Sanstha Ltd. (ULBSL) | 61.75% | 3.25% | 65% |
3. | Manakamana Smart Laghubitta Bittiya Sanstha Ltd. (MKLB) | 4.75% | 0.25% | 5% |
4. | NADEP Laghubitta Bittiya Sanstha Limited (NADEP) | 10% | 0.526% | 10.526% |
5. | Adarsha Laghubitta Bittiya Sanstha Limited (ADLB) | 20% | 1.05% | 21.05% |
And that's all for this week. If you liked our update, please share it in your network and help us grow.