NRB FLEXIBILITY TOPPLE NEPSE

ShareSansar, 10th Sept:
    
Latest flexibility given by the Nepal Rastra Bank (NRB) to Banking and Financial Institutions (BFIs), by prolonging the deadline of meeting the paid up capital, topple the market sentiment today.

Earlier, NRB had directed the Banking and Financial Institutions through monetary policy to raise their paid up capital to the standard set by the NRB within this fiscal year end. However, recently, the NRB has revised this policy and has asked the BFIs to meet the requirement by the end of the next fiscal year.

Such a sudden move has cornered the investors into a tight spot. Investors, who were affirmative of getting a hefty bonus share from the BFIs at one time, were found low on confidence of getting a healthy return as expected after the NRB’s change.

Citing such scenario, the investors making the maximum utilization of recent surge, flooded the market with the banking shares, which tumbled the market index by 4.74 points. The local bourse by the end of the day came to close at 547.6 levels.

Among the eight commercial banks, who were obligated to raise the paid up capital upto Rs 2 billion within this fiscal year as per prior policy,  except Lumbini Bank Ltd. (LUBL) were found galloping down today.

Everest Bank Ltd (EBL), Standard Chartered Bank Ltd. (SCB), Nepal Credit And Com. Bank (NCCB), Siddhartha Bank Limited (SBL), Laxmi Bank Limited (LBL), Bank of Kathmandu (BOK) and Kumari Bank Ltd (KBL) suffered loss of Rs 69, Rs 30, Rs 14, Rs 14, Rs 11, Rs 7 and  Rs 1 respectively.

Confronted by such heavy decline in the most of the banking scrips, Banking sectors stumbled by 7.62 points.  Likewise, Finance also declined by 0.22 points and Hydro dropped by a massive 18.2 points, whereas Development was able to sustain 2.18 point gain along with the 1.14 and 1.02 points growth of Hotels and Insurance respectively. As for Others sector, it remained intact at 663.81 levels.

All in all, 115 scrips were traded, out of which 55 scrips gained, 21 remained intact and 39 scrips lost.

The share with the highest gain in today’s session was, Nerude Laghubita Bikas Bank Limited (NLBBL), closed at Rs 743, with Rs 67 or 9.91 percent growth. Whereas, Sagarmatha Insurance Co. Ltd (SIC), closed at Rs 735, was the worst performer for the day with a loss of Rs 43 or 5.53 percent.

While, Chilime Hydropower Co. Ltd. (CHCL), closed at Rs 1586, continuing its form made the highest turnover today also. As the book closure date for the company’s 30 percent bonus share and 10 percent is on 13th September, the company’s scrip is highly demanded, active as well as lucrative in the market.

Altogether, 26,380 units of shares were traded through 179 transactions worth Rs 41,286,419. The broker with the highest standalone dealing of CHCL was Broker No 6 (Agrawal Securities Pvt. Limited) with 21.74%; amounting Rs 17,957,866 via 21 transactions totaling  11,514 units which include 4 matching transactions tallying  4,776 units worth Rs 7,446,008.

Overall, 558,353 units of shares were traded by 2,787 transactions with total turnover worth Rs 186,376,918; the market capitalization by the end of the day tallied to Rs 549,669.45 million.