Market set to rise today; Political stability, Dividends & Right issue to propel the market

NIC ASIA Bank ltd (NICA) has announced 39% stock dividend. Laxmi Bank Ltd (LBL) is in verge of announcing its 1:1 right shares as promised in its capital plan. There are rumors of bonus and right shares of Agricultural Development Bank Ltd (ADBL). One thing common on all these three commercial bank is that they hit circuit break yesterday in the secondary market of Nepal.

The news of 27% stock dividend and right shares worth Rs 2.6 arba at premium price from Nepal SBI Bank Ltd (SBI) had been propelling the market for a while.

The meeting of cabinet of ministers held yesterday decided to end the political deadlock with agitating Madhesi parties. The meeting decided to amend constitution to form election constituencies on the basis of population with at least one election constituent in one district. The meeting also decided to address the issues with boundaries and citizenship. The move was welcomed by the agitating Madhesi parties as well as the government of India.

News on political stability coupled with the dividends, right issue from the listed companies will set the market in forward direction.