The share market fluctuated throughout the week and gained a minimal 0.61 percent in the index value to close at 482.34 points. Despite volatile performance of Nepal Stock Exchange (Nepse) index, investor confidence rose as compared with previous week as investors traded freely without skepticism, which is reflected by the overall market turnover.
The market volume, excluding the bulk trade of Sanima Bikash Bank´s promoter shares, increased by 88.4 percent as compared with last week.
The Development Banking sector (+4.11 percent) posted the highest gain among the sub indices as share price of Ace Development Bank (+Rs 55), and Clean Energy Development Bank (+93) surged. The Insurance sector (+2.42 percent) followed the rise as share prices of Life Insurance Company Nepal (+ Rs 136) topped the gainers´ list.
The Commercial Banking sector (+1.02 percent) continued to boost the overall market with increases in share price of Kumari Bank (+Rs 29), and Nepal Industrial & Commercial Bank (+Rs 39). However, the ´Others´ sub-sector (-1.7 percent) slid because the share value of Nepal Doorsanchar Company´s (-Rs.8) tumbled for the second consecutive week.
The Finance sector (-0.81 percent) was another sector to decline, primarily due to Butwal Finance Company (-Rs.252) that resumed its transactions after a long interval with a substantial drop in its price.
The Hydropower sector (-0.69 percent) also shed points as share prices of Arun Valley Hydropower (-Rs 14), and National Hydropower Company (-Rs 1) declined.
Amongst other highlights, the International Monetary Fund (IMF) has approved a loan disbursement of US$ 42.05 million under its Rapid Credit Facility (RCF) to ease the current Balance of Payment (BOP) deficit which in turn has eased the current liquidity crisis prevailing in the banking sector.
Likewise, the inter-bank lending rate has decreased from an alarming 15 percent to around 7 percent. No review on need to disclose source of income for bank deposits over Rs 1 million will be possible before the next budget.
On the declaration front, Sahayogi Bikas Bank is closing its book on June 8 for 3:1 right shares while Sunrise Bank is closing its book on June 11 for 10:3 right shares. Purwanchal Grameen Bikas Bank has declared 20 percent cash dividend.
On the IPO side, application for Unique Financial Institution starts on June 6 and IPOs of Alpine Development Bank and Diyalo Bikas Bank IPO have been oversubscribed.
