NLIC comes up with the spectacular new scheme ‘Naula Dhan Barsha’

Chairperson of Nepal Stock Exchange Limited (Nepse) as well as CDSC Krishna Prasad Devkota has urged general investors not to panic and start off-loading their stock, which will not only harm them but also the only secondary market of the country.

“Please don’t panic. We are constantly in touch with Nepal Rastra Bank as well as Sebon and the government officials,” said Devkota. “We won’t let the market fall under a certain level.”

Addressing a program organized by Nepal Investors’ Forum to clear the air regarding the central bank directive in Kathmandu today, Devkota, who is also the joint secretary of the Ministry of Finance, further said that all senior officials of the finance ministry were aware of what is going on in the stock market, and won’t hesitate to intervene to correct the market if need be.

“The central bank officials have also clarified that its aim is to control only short-term position of the institutional investors and not to restrict their investment in the stock market,” Devkota added. “If you don’t understand all this and start to offload your shares in panic, only big, fat investors will benefit.”

He further said that the central bank officials may be organizing a program soon to clarify about the misinterpretation of its directive, which is creating panic among the general investors.

Speaking earlier at the program, Chairman of the Investors’ Forum Raj Kumar Timilsina and President of the Brokers’ Association Narendra Sijapati urged the central bank as well as Nepse and Sebon officials to clarify that the latest NRB directive is not aimed at restricting the investment of institutional investors in the stock market.

Former governor of the central bank Dipendra Bahadur Chhetri  said that the central bank may have come up with the new directive, anticipating that growing investment of the commercial banks in the stock market in the wake of surplus liquidity in the banking system could eventually hurt the stock market as well as the banking sector.

“But it does not intend to ruin the stock market,” Chhetri added. “The market won’t crash. Hence I urge investors, especially the small general investors not to panic.”

source: sharesansar




After making a marginal gain of 0.37 points yesterday following whopping loss of 21.14 points or 2.04 percent  the day before, the benchmark index of Nepal Stock Exchange Limited (Nepse) again shed 17.91 points today to close at 995.71 levels.
This is the first time, the Nepse index has fallen below 1,000 level. The last time it was below that level was in July 7, when the index had closed at 995.19 level.
The market was brought down today basically by the banking group, with the highest market cap, though all the seven sub-indices suffered.
Apart from a handful of development banks and finance companies, two MFIs (First Microfinance and Nagbeli), a mutual fund (SIG-1), a hydropower company (BPCL), an insurance company (United Insurance) and the convertible preference of Everest Bank Limited, all the listed companies landed in the red zone.  NIC Asia and Mega Bank as well as one mutual fund (NBF-1) and a few development banks and finance companies, however, remained constant.
The selling pressure steadily increased ever since the only secondary share market of the country opened for trading at noon.
Despite the momentary slump, let us not forget that the turnover remains steady and encouraging. It stood at an impressive Rs 51.16 crore today, though slightly low than Rs 55.24 crore of yesterday—but much better than Rs 47.80 crore of Tuesday and Rs 39.59 crore of Monday.

How the commercial banks performed by the fourth quarter

Now that most of the companies listed with Nepal Stock Exchange Limited (Nepse) have already published their financials for the fourth quarter, it’s high time to recap how they fared, and most importantly, which companies fared the best.

We will start with the best performing companies in the banking group.

Among the commercial banks, most of the big ones such as Nabil, NIBL, Everest, SCB, HBL, and Nepal SBI continued to meet the expectations.  Among the state-run banks NBL outperformed while RBB posted a modest growth while ADBL came with upsetting figure largely due to a massive sum of Rs 3.3 arba it set aside as staff expenses.

Among the emerging ones, Global IME, NBB, NIC ASIA PCBL, Siddartha and Mega clearly outperformed  in the last fiscal year. 

Nabil emerged as the bank with the highest profit (Rs 2.33 arba) followed by NIBL as somewhat distant second with (Rs 19.57 arba), RBB (Rs 17.33 arba), Everest (Rs 1.54 arba and ADBL (Rs 1.50 arba).

Despite disappointing performance of a few of them, particularly ADBL and Grand, most of the commercial banks have done better in the last fiscal year – notwithstanding the fact that they had to struggle with surplus liquidity in the market and the central bank’s move to contain the spread rate within 5 percent.

This can also be substantiated from the fact that there were five banks with net profit of more than Rs 1.5 arba in the last fiscal year, as mentioned above, while there  only four banks to cross that mark in the previous fiscal year—ADBL (Rs 2.25 arba, Nabil (Rs 2.23 arba), NIBL (Rs 1.99 arba), RBB (Rs 1.51 arba).
Likewise, there were only seven banks with their net profit above Rs 1 arba in the previous fiscal year as compared to nine banks in the last fiscal year.

All in all, BFIs have posted robust growth in the last fiscal year despite all odds. Isn’t it something to cheer about!

source: sharesansar

Nepal Stock Exchange Limited has granted permission to one more stock brokers from today for trading.

Nepal Stock Exchange Limited has granted permission to one more stock brokers from today for trading.

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Regulators renew promises Nepse gains again

The stock market inched a little upwards following the renewed interest of regulators to promote the ailing securities market, as the Nepal Stock Exchange (Nepse) index gained 3.53 points on the first week of year 2012 -January 1 to 6.
Recently, High Level Financial Sector Coordination Committee has directed to start the operation of Central Depository System by mid-January. Likewise, the committee has decided to pursue full automation of Nepal Stock Exchange in order to stimulate the stock market.
Likewise, the committee is also going to impose measures to reduce the cost of trading in Nepse within next few months. Moreover, the government has also decided to increase the ceiling for source disclosure while trading in the share market from the current Rs 1 million to Rs 10 million.
These measures are expected to improve the performance of the market and attract investors in the coming days.
On Sunday morning the stock market opened at 312.94 points that went up to 318.74 points by the end of trading. Next two days saw the market go up to 324.15 points following the finance minister’s visit to stock exchange. However, the benchmark index could not sustain the ascent so that it slumped to 318.99 points on Wednesday. The index rested for the week at 319.55 points.
Nepse saw trading of 486,233 unit shares of 116 companies on 5788 transactions in five trading days, this week. This is 38.33 per cent decline in trading volume as compared to that of last week.
Among the total transactions, the trading of blue chip stocks of class ‘A’ companies consisted of 70.18 per cent amounting to Rs 87.8 million.
The sensitive index that measures the Class-A companies’ performance went up by 1.12 points reaching 79.32 points at the end of the week. The float index that measures the performance of actual shares traded also increased by 0.16 points to 25.43 points.
This week, hydropower, insurance, development banks and finance companies ended up in red.
Thanks to Nepal Telecom Others subgroup earned 15.27 points. Commercial banks went up by 3.78 points followed closely by manufacturing companies that earned 3.51 points.
Hydropower and insurance companies lost 5.74 and 5.04 points, respectively. Likewise, finance companies and development banks went down by 0.89 points and 1.2 points,
Everest Bank was forerunner both in terms of transaction amount and number of shares traded with the trading of 44,115 shares worth Rs 30 million. Gurans Life Insurance was fore runner in number of transaction with 589 transactions.
The top five performers of the week are Everest Bank (Rs 30.2 million), Bank of Kathmandu (Rs 16.26 million), Chilime Hydropower Company (Rs 9.30 million), Standard Chartered Bank (Rs 6.60 million) and Nabil Bank (Rs 4.50 million).


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New Brokers list: NEPSE

Nepal Stock Exchange Limited has published a list of new stock brokers.

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NRB to divest NEPSE stakes: Guv

NRB Governor Yubaraj Khatiwada has said that the central bank has decided to handover its stakes in Nepal Stock Exchange (NEPSE) to a strategic partner. At the function to handover CDS software, Khatiwada said the NRB plans to divest its shares in NEPSE to privatise the capital market. The central bank currently holds 35 percent shares in NEPSE. Securities Board of Nepal Chairman Surbir Poudel said the capital market would take new direction if NEPSE is privatised. “As all of us are well aware of the government’s conservative approach while running a business, it is necessary to bring in a private sector to run the capital market,” said Poudel.

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