NEPSE BOUNCE BACK ON BANKING EFFECTS

Sharesansar, 23rd July:

Key stock market index of Nepal, Nepse, posted 3.86 points gain as buyers went for lower capital base banking and financial institutions’ shares.

“Most of the banking and financial institutions’ shares had witnessed correction yesterday after series of profit-taking from traders, which motivated many investors to accumulate at corrected price,” says one of the brokers.

Given the NRB strong stand on Rs 2 arba paid capital for commercial banks, the buyers are upbeat about possible bonus or right shares from banks’ with less than mentioned capital base. Fuelled by such sentiment, hefty demand were observed in  Lumbini Bank Ltd. (LUBL), Kumari Bank Ltd (KBL) and Nepal Credit And Com. Bank (NCCB).

Similarly, the news of bringing foreign strategic partner in Nepal Bank Limited continued to propel the company’s share price as it rose by Rs 12 with turnover of Rs 57.69 million.

Alongside it, sound fourth quarter report of Citizens Bank International Limited (CZBIL) uplifted its price by Rs 14 with Rs 36.61 million worth transaction and Grand Bank Limited, which had little movement in prior days, rallied by Rs 32 with turnover of Rs 44.38 million.

Of the Rs 794.09 million total market turnover, 61 percent was alone covered by the transactions of banking scrips. Similarly, out of the ten top turnovers eight were only banking scrips in which LUBL, KBL and NCCB were also included.

The overall buying euphoria in banking shares in today’s session mainly propelled the benchmark index beyond green to close at 1081.51 level.

Among sub-indices, Banking added 6.06 points, Development increased by 6.7 points, Finance inclined by 8.07 point, Manufacturing made meager gain of 0.7 point, Hotels surged by 26.74 points and Others advanced by 7.04 points.

While, Hydro dropped by 13.89 points following Rs 30 correction in Chilime Hydro power Co. And Insurance decreased by 60.98 points.

All in all, the scrips of 153 companies were traded, out of which 89 scrips gained, nine remained intact and 55 scrips lost.

The best performer for the day was, Kanchan Development Bank Ltd.  (KADBL), closed at Rs 308, with Rs 28 or 10 percent gain. Whereas, Araniko Development Bank Limited (ARDBL), closed at Rs 199, was the worst performer today with Rs 20 or 9.13 percent loss.

As for the highest turnover, Lumbini Bank Ltd. (LUBL), which closed at 507, topped the category. Altogether, 155,838 share units were traded through 491 transactions worth Rs 80,439,698

The broker with the highest standalone dealing of the LUBL was Broker No 1 (Kumari Securities Pvt. Limited) with 6.51 percent totaling 20,545 shares trade amounting Rs 10,484,119 via 61 transactions.