Stock Market News Pick of the Week
The NEPSE Index showed some positive signs this week. Investors still look cautious and are on a wait and watch mood as Nepal Rastra Bank is to issue the mid-term Monetary Policy. For now, here are the important updates from Nepal's share market!
NEPSE Soars This Week! Monetary Policy Review to Determine the Future of the Stock Market.
The Nepal Stock Exchange (NEPSE) index has rebounded this week, following a steep decline last week. On Thursday, the index closed at 2182.63 points, reflecting a gain of 88.10 points (4.21%) over the week.
This resurgence can primarily be attributed to a remarkable 76.64 points gain on Tuesday, while the market remained relatively calm on other trading days of the week.
A modest weekly turnover of Rs.12.33 billion indicates that investors are adopting a cautious "Wait & Watch" approach, as they await the upcoming Mid-Term Monetary Policy from Nepal Rastra Bank.
The possible amendment of policies such as 12 crore single obligor limit on marginal lending, 150% risk weight on loans against shares, and the restriction imposed on BFIs for selling shares for a year, amongst others in the forthcoming monetary policy review by NRB is likely to shape the future of NEPSE.
Sector Wise Index Outlook of the week.
Sectors | Opening Index | Closing index | Percentage change |
Investment | 64.34 | 69.44 | 7.93 |
Finance | 1722.5 | 1845.94 | 7.17 |
Development Bank | 3662.66 | 3893.1 | 6.29 |
Hydropower | 2588.99 | 2738.49 | 5.77 |
Manufacturing & Processing | 5126.39 | 5399.72 | 5.33 |
Others | 1494.08 | 1561.16 | 4.49 |
Non life insurance | 9065.74 | 9440.76 | 4.14 |
Trading | 2235.57 | 2316.46 | 3.62 |
Life insurance | 10661.69 | 11021.61 | 3.38 |
Commercial Bank | 1363.13 | 1405.96 | 3.14 |
Hotel & tourism | 3228.11 | 3328.22 | 3.10 |
Microfinance | 4583.72 | 4720.83 | 2.99 |
Mutual Fund | 14.44 | 14.62 | 1.25 |
IPO Proposals Approved.
The Securities Board of Nepal has approved the Initial Public Offerings (IPO) proposals of Menchhiyam Hydro Power Ltd.
Menchhiyam Hydro Power Ltd. will now issue 1,627,750 units of shares at par value of Rs.100 each.The company is developing a 4.72 MW run-of-river, Upper Piluwa Khola-II Small Hydropower Project in the Sankhuwasabha district of Nepal. The project is constructed under BOOT (Build, Own, Operate, and Transfer) model.
As of the current fiscal year 2079/80, the Securities Board of Nepal (SEBON) has approved 20 initial public offering (IPO) proposals. Out of these approved IPOs, 10 companies are yet to offer shares to the general public.
Top Performers of the week.
S.No. | Top Gainers | Opening price this week | Closing Price this week | Percentage gained |
1. | Joshi Hydropower Development Company Ltd (JOSHI) | 260 | 316.9 | 21.88 |
2. | Adarsha Laghubitta Bittiya Sanstha Limited (ADLB) | 1928.9 | 2350 | 21.83 |
3. | Radhi Bidyut Company Ltd (RADHI)
| 253 | 292 | 15.42 |
4. | Support Microfinance Bittiya Sanstha Ltd. (SMB) | 1154 | 1319 | 14.30 |
5. | Barun Hydropower Company Ltd. (BARUN) | 250 | 285 | 14 |
S.No. | Top losers | Opening price this week | Closing Price this week | Percentage lost |
1. | Mahalaxmi Bikas Bank Ltd. Promoter Share (MLBLPO) | 211 | 189.2 | 10.33 |
2. | 12% ICFC Finance Ltd. Debenture (ICFCD83) | 1075.69 | 1009.4 | 6.16 |
3. | Garima Bikas Bank Ltd. Promoter Share (GBBLPO) | 207 | 198 | 4.35 |
4. | Nabil Balanced Fund-3 (NBF3) | 7.88 | 7.54 | 4.31 |
5. | Civil Bank Debenture 2088 (CBLD88) | 864.5 | 833.1 | 3.63 |
Upcoming IPOs
Asian Hydropower Limited is issuing 6,97,200 units of shares to the general public from 27th Magh- 2nd Falgun at a face value of Rs.100.
Given the oversubscription trend in IPOs, it would be wise to apply for only 10 units( Investment of Rs.1,000 only).
We have been constantly reminding you to not miss any opportunities in Initial Public Offerings (IPOs). We strongly believe that these investments will prove to be a valuable asset and will never go to waste.
Dividends Announcements made this week.
S.N. | Name of the Companies | Bonus Shares | Cash Dividend | Total Distribution |
1. | Samata Gharelu Laghubitta Bittiya Sanstha Ltd. (SMATA) | 15% | 3% | 18% |
2. | Asha Laghubitta Bittiya Sanstha Ltd. (ALBSL) | 20% | 1.5026% | 21.5026% |
3. | Vijaya Laghubitta Bittiya Sanstha Ltd. (VLBS) | 20% | 1.5026% | 21.5026% |
Are you in search of a trustworthy fixed income option to incorporate into your investment portfolio?
Well then, Standard Chartered Bank Ltd.(SCB) is issuing “10.30% Standard Chartered Bank Ltd. Debentures” from Magh 26 to Falgun 1 (will be extended till Falgun 11 if not fully subscribed). The debenture has a short maturity period of 5 years & will be redeemed on 2084 B.S.
The bank will float 24 lakhs units of debentures at a face value of Rs.1000 each.
You can apply for a minimum of 25 units( worth Rs.25 thousands ) & maximum of 1,00,000 units( worth Rs.10 crores) .
ICRA Nepal has provided the issuer rating of [ICRANP-IR] AAA to the SCB for the third year in a row. SCB is the only AAA rated company in Nepal .The AAA rating signifies the highest degree of safety for adherence to financial obligations.
As the market projection suggests a decrease in the market interest rates from double digit figures, investing in SCB Debentures can provide you with a reliable source of fixed income. Additionally, you have the option to sell the debentures at the secondary market, offering the opportunity to redeem your investment any time.
Given these factors, this comes across as an advantageous opportunity to consider adding fixed income assets to your investment portfolio.