Bond Certificate Distribution: Kumari Bank Ltd

Kumari Bank Ltd. has completed its bond allotment procedure. The bond certificate distribution will start from 19th June, 2008 (2065 Ashad 5).
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Nepal Investment Bank issuing Reedemable Bond

Nepal Investment Bank Ltd is going to issue 7-year Redeemable Bond worth Rs 250 million at the rate of 8.0% interest to its bondholders. The company is issuing the bond from 26th June, 2008 to 1st July, 2008 (2065 Ashad 12 to 2065 Ashad 17).
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Upcoming 41st AGM: Salt Trading Corporation

Salt Trading Corporation Ltd. announces its 41st AGM on 14th July, 2008 (2065 Ashad 30) at 11 AM in The Everest Hotel, New Baneshwor
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Upcoming 2nd AGM: Kuber Merchant Bittiya Sanstha Ltd

Kuber Merchant Bittiya Sanstha Ltd. has declared its forthcoming AGM to be held on 9th July, 2008 (2065 Ashad 25) in Russian Cultural Center, Kamalpokhari at 10:30 AM. Discussion agendas will also include to increase paid up capital and to provide right share in the ratio 1:2.
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Upcoming 6th AGM: Life Insurance Co. Ltd

Life Insurance Co. Ltd. has announced its forthcoming AGM to be held on 10th July, 2008 (2065 Ashad 26) at Nepal Administrative Office, Jawalakhel at 11 AM.
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Govt inaction puts mutual funds in limbo

Even though mutual funds are becoming one of most popular investment avenues for small and risk-shy investors globally, their presence is negligible in the Nepali market due to the absence of laws.

Market analysts say that many companies are interested in operating mutual funds, but they can't go into business because relevant regulations have not been made.

A mutual fund company collects money from many investors and puts it in stocks, bonds and other securities and passes on the gains or losses to the individual investors. Retail investors see mutual funds as a preferred equity investment route.

The Securities Board of Nepal (SEBON) has been working to create the Mutual Fund Regulations for the last five years, but it has not gone anywhere. Similarly, the Ministry of Finance has not been able to bring out the Trust Act.

“These regulations and the Act must come into effect before any company can operate mutual funds,” SEBON director Niraj Giri said. “As the regulations should be compatible with the Act, we are awaiting its introduction before introducing the regulations.”

Sujeev Shakya, president of Tara Management, said new laws relating to sponsors and asset management companies were needed to start mutual funds.

“The tax laws should be improved. The capital gains tax on individual and institutional investments should be the same, which is 10 and 26 percent respectively at the moment,” he said.

The total net assets of US mutual funds amount to US$ 11.742 trillion while the worldwide value of all mutual funds is more than US$ 26 trillion.

It is estimated that mutual funds have a potential market worth Rs 5 to 10 billion in Nepal. NCM Mutual Fund is the only mutual fund in the country. Analysts said it had been unable to expand because the government had not come out with the necessary laws. Some years back, the central bank had to rescue it by pumping in money.

“It was allowed to begin operation in 1991 on a contractual basis without any specific regulations,” said Giri.

SEBON officials said mutual funds were not properly regulated, and all that the board had done by way of regulation

was set certain norms and guidelines.

Former SEBON chairman Deepak Raj Kafle said mutual funds could play a strong role in stabilizing the stock market that often displays mercurial mood swings.

“Mutual funds are institutional investors who choose shares by doing fundamental analysis instead of acting on a whim,” he said. “Retail investors normally follow their lead and make wise investments.”

He said small investors missed good investment

opportunities like Nepal Telecom shares because of ignorance. If there had been mutual fund companies, they

would have been able to own a part of it.

The government had announced in the budget proposal a string of plans including establishment of a regulatory and supervisory body in order to encourage mutual funds.

But this has been limited to paper so far.

Experts have suggested that the government should allow mutual funds to invest some of their money in the global financial market in order to encourage them.

“It's perfectly OK for a mutual fund to invest in the international market to seek better returns. Ultimately, any gain it makes is brought into the country,” said Kafle.

Source: eKantipur
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NSM about to distribute right share

Nepal Share Market & Finance Ltd. is going to issue 1:3.63 right share in the near future. In order to upgrade itself as an 'A' grade commercial bank, NSM is about to issue the shares amounting to Rs. 1,532,000,000. Citizen Investment Trust is appointed as the issue manager by the company. At present NSM has Rs. 43 million paid up capital and to increase it to 2 billion, the company is issuing the right share.
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Open policy for the stock brokers

There is a good news for the potential stock exchange brokers. The people who are likely to give exam for being qualified as a broker can get the license after obtaining a pass mark in the exam.The exam for recruiting 50 more brokers, that had to be conducted before three months is still pending around. This exam is said to be conducted very soon in the near future.
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Subhechha offers an IPO

Subhechha Bikash Bank Ltd. is presenting an initial public offering for the general public. Total 120000 shares amounting to Rs. 12 million is being issued at the rate of Rs. 100 per share. The company is issuing the IPO from 25th June, 2008 to 30th June, 2008 (2065 Ashad 11 to 2065 Ashad 16). The issue will be managed by ACE development bank ltd. Subhechha commenced its operation from 26th september 2004 and is located in Narayangadh, Chitwan. The bank has authorized capital of Rs. 200 million and issue capital of Rs. 40 million.
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Sebon alerts issue, sales managers

Securities Board of Nepal (Sebon) has issued directives to issue and sales managers to make the capital market more transparent and vibrant. According to the new directives, the regulatory authority of capital market has asked sales and issue managers to submit report of collection centres — the amount and forms collected — everyday or the next day by 12 noon. Similarly, the board has asked to open a joint account in the name of banker to the issue (commercial bank) and ownself to deposit the collected amount for the IPOs. "Every next day the money thus deposited must be deposited in an account — opened for this purpose in the Nepal Rastra Bank (NRB) — at least for three days.

The applicants will also get the interest, though a nominal, till the date the shares are alloted, states the new directives. "The new directives are needed as over Rs 2 billion Initial Public Offerings (IPOs) and bonds are being issued soon," Dr Chiranjivi Nepal, chairman of the regulatory authority of the capital market said, adding that enforcement of rule is more important than bringing the rule itself.

The board is, this time, very cautious about the citizenship certificate also, as its monitoring unit had last time raided and confiscated the Employment Promotion and Development Bank's (EPDB) IPO application forms — from different collection centres — with suspicious citizenship certificates. The EPDB had received 5,00,000 applications amounting to over eight billion rupees that it claimed to be oversubscribed. The eight billion rupees claimed to be collected was not 'the cash'. The collection of cash did not exceed half-a-billion and the amount was only in the papers. According to the new rule, the cash must be deposited at a NRB account unlike earlier practise of showing it on paper only.

To check the 'fake oversubscription' of IPOs, NRB had also issued directives, earlier. "Public has, recently, lost appetite for IPOs and the new move is hoped to reinstall their confidence," he said.

Due to the 'fake citizenship issue' of EPDB, over 3,000,00 applications were dumped. Now, the Sebon thinks that Merchant banks will be more responsible and as the board has strictly asked investors not to use fake citizenship certificate or face the action.

Source: The Himalayan Times

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Kist's tax free scheme

Kist Merchant Banking and Finance Ltd (KMBFL) has brought ‘Kist Tax Free Saving Deposit Scheme'. Under the new scheme, which came into effect from Sunday, customers can open an account at a minimum of Rs 100 that will attract six per cent interest on daily deposits, states a press release. The tax on interest income of the deposits will be borne by Kist itself on behalf of the account holder. Free facilities of Kist SSB Debit card, cheque book, bank statement, bank balance certificate, ABBS and SMS banking services will be available in this scheme, too. To have enough liquidity and increase their base, lately financial institutions are coming with new schemes — to lure depositors of different age group.

Source: The Himalayan Times
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BoAN in Ilam

Bank of Asia Nepal (BoAN) opened a new branch in Ilam as a part of its latest expansion drive. Chief Executive Officer of the bank Parshu Ram Kunwar inaugurated the branch amid a function Wednesday, the bank has said issuing a press release. The branch is its fifth in the country, says the release, adding that it would be extending a complete range of modern banking services to individuals as well institutional clients. The bank also announced an operating profit of Rs 38 million.

Source: eKantipur
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National Life to issue bonus shares

National Life Insurance Company said in a statement that it would be issuing bonus shares in the ratio of 1:1 to its shareholders. The company said that its 20th annual general meeting, held Thursday, had taken the decision. The meeting also approved a proposal to issue right shares in the ratio of 1:1 after the issuance of the bonus shares to raise the paid up capital. Over the last fiscal year, the insurance earned a net profit of Rs 30.07 million.
Source: eKantipur

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HBL shifts to Sukuldhoka

Himalayan Bank Ltd. has shifted its Suryabinayak branch to Sukuldhoka, a commercial destination in Bhaktapur. The chairman of the bank, Manoj Bahadur Shrestha revealed that the bank has collected Rs.310.80 billion deposit and has given out Rs. 200.44 billion loan. Within the last 10 months of the fiscal year 2064/65, the bank earned Rs. 800.92 million operating profit.
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Right Share Issue: NBB

Nepal Bangladesh Bank Limited has got approval from Nepal Rastra Bank to issue 1:1.5 right share.
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PDBL to give dividend

Paschimanchal Development Bank Ltd. during its fifth annual general meeting decided to give 8 percent cash dividend to its shareholders. At present, the company has authorized capital Rs. 400 million, issue capital 200 million and paid-up capital Rs. 100 million.The bank is providing its service from five different branches including the corporate office in Butwal.
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Nepse looks up to 1000-point mark

Though the total transaction amount decreased by 13.05 per cent to Rs 573.65 million from last week’s Rs 659.76 million, the Nepse registered a growth of 45.45 points to 930.65 points from last week’s closing of 885.20 points.

Unlike last week when Nepse had recorded a whopping growth of 52.02 day, the Nepse surged by 25.62 points to 910.82 points from last week’s closing of 885.20 points. The market was closed 15 minutes earlier.

Similarly, on Monday, it posted a growth of 13.83 points to 924.65 points.

However, on Tuesday, the Nepse plunged by 9.62 points to 915.03 points. On Wednesday, it rebounced by 8.14 points to 923.17 points.

On Thursday, the last day of velopment Bank topped the chart in terms of number transaction with 258 transactions.

Altogether 76 companies, out of total listed companies, saw their shares being traded at the sole secondary market this week.

The most important group — considered the backbone of the capital market the worldover — manufacturing group did not see any transaction this week too.

However, c o m m e rc i a l banks, develo p m e n t banks, hydropower and insurance groups propelled the Nepse as usual. Last week, the finance company group was in red but this week it also p o s t e d growth.

The hotel group ended in the negative territory this points to 885.20 points, this week the sole secondary market index recorded 45.45 points leaving a cue that the Nepse is looking upwards to 1000-point mark, once again.

This week the companies listed under A-category contributed 76.06 per cent in the total transactions.

The sensitive index — an index of the A-category companies — surged by 10.50 points to 243.48 points from last week’s closing of 232.98 points.

Like last week, this week too, the secondary market ended in the green zone on four-day — except on Tuesday — among the five-day session in a week. On Sun trading in the domestic market, the Nepse flared by 7.48 points to close the weekly trading at 930.65 points.

In terms of monetary value, Bank of Kathmandu (with Rs 56.17 million), Nepal Bangladesh Bank (with Rs 47.09 million), Sanima Bikas Bank (with Rs 38.14 million), Development Credit Bank (with Rs 29.92 million) and Nepal Investment Bank (with Rs 25.40 million) are this week’s top five gainers.

In terms of numbers of share units traded, Nepal Bangladesh Bank topped the chart with 45,000-unit of its shares being traded this week, while Biratlaxmi De week, too. Hotel group lost 3.35 points to 394.07 points from last week’s closing of 397.42 points.

The finance company group flared by 47.87 points to 1083.29 points from last week’s closing of 1035.42 points. Similarly, commercial banks group registered 53.37 points growth to 951.33 points from last week’s closing of 897.96 points while, development bank group surged by 67.05 points to 1207.04 points from last week’s closing of 1139.99 points.

Trading, insurance and hydropower groups also posted growth to 213.40 points, 844.88 points and 1256.78 points, respectively.

Though the total transac- tion amount decreased by 13.05 per cent to Rs 573.65 million from last week’s Rs 659.76 million, the Nepse registered a growth of 45.45 points to 930.65 points from last week’s closing of 885.20 points. Unlike last week when Nepse had recorded a whopping growth of 52.02 day, the Nepse surged by 25.62 points to 910.82 points from last week’s clos- ing of 885.20 points. The market was closed 15 min- utes earlier. Similarly, on Monday, it posted a growth of 13.83 points to 924.65 points. However, on Tuesday, the Nepse plunged by 9.62 points to 915.03 points. On Wednesday, it rebounced by 8.14 points to 923.17 points. On Thursday, the last day of velopment Bank topped the chart in terms of number transaction with 258 trans- actions. Altogether 76 companies, out of total listed compa- nies, saw their shares being traded at the sole secondary market this week. The most important group — considered the backbone of the capital market the worldover — manufacturing group did not see any transaction this week too. However, c o m m e rc i a l banks, devel- o p m e n t banks, hy- dropower and insurance groups pro- pelled the Nepse as usu- al. Last week, the finance company group was in red but this week it also p o s t e d growth. The hotel group ended in the negative territory this points to 885.20 points, this week the sole secondary market index recorded 45.45 points leaving a cue that the Nepse is looking upwards to 1000-point mark, once again. This week the companies listed under A-category contributed 76.06 per cent in the total transactions. The sensitive index — an in- dex of the A-category com- panies — surged by 10.50 points to 243.48 points from last week’s closing of 232.98 points. Like last week, this week too, the secondary market ended in the green zone on four-day — except on Tues- day — among the five-day session in a week. On Sun- trading in the domestic market, the Nepse flared by 7.48 points to close the weekly trading at 930.65 points. In terms of monetary val- ue, Bank of Kathmandu (with Rs 56.17 million), Nepal Bangladesh Bank (with Rs 47.09 million), San- ima Bikas Bank (with Rs 38.14 million), Develop- ment Credit Bank (with Rs 29.92 million) and Nepal In- vestment Bank (with Rs 25.40 million) are this week’s top five gainers. In terms of numbers of share units traded, Nepal Bangladesh Bank topped the chart with 45,000-unit of its shares being traded this week, while Biratlaxmi De- week, too. Hotel group lost 3.35 points to 394.07 points from last week’s closing of 397.42 points. The finance company group flared by 47.87 points to 1083.29 points from last week’s closing of 1035.42 points. Similarly, commer- cial banks group registered 53.37 points growth to 951.33 points from last week’s closing of 897.96 points while, development bank group surged by 67.05 points to 1207.04 points from last week’s closing of 1139.99 points. Trading, insurance and hydropower groups also posted growth to 213.40 points, 844.88 points and 1256.78 points, respectively.
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Gold price continues to decrease

Gold price continued to dip this week too.

The precious yellow metal closed at Rs 19, 675 per 10 gram on Friday, the closing day of the week from Rs 20,200 on Sunday — a drop of Rs 525 per 10 gram in a week.

According to Nepal Gold and Silver Dealers’ Association (NEGOSIDA), the price of gold saw a continuous fall due to instability in the crude price in the global market. “The US dollar has also showed some improvement,” says NEGOSIDA.

The precious yellow metal in the local bullion market opened at Rs 20,200 per 10 gram on Sunday. On Monday, it remained constant but again dipped by Rs 140 on Tuesday to Rs 20,060 per 10 gram. On Wednesday it continued to plunge by Rs 360 to Rs 19,700. But it rebounced by Rs 40 on Thursday to Rs 19,740.

And it closed at Rs 19,675, Rs 65 less per 10 gram on Friday, the last day of this week’s trading.

In the international market also, gold touched $902 per ounce in the beginning of this week. But it closed at $772 per ounce.

However, unlike last week, silver price witnessed a steady fall this week. It opened at Rs 401 per 10 gram on Sunday and continuously fall to R 395 on Tuesday, Rs 388.50 on Wednesday and closed at Rs 386 on Friday.

Gold price continued to dip this week too. The precious yellow metal closed at Rs 19, 675 per 10 gram on Friday, the closing day of the week from Rs 20,200 on Sun- day — a drop of Rs 525 per 10 gram in a week. According to Nepal Gold and Silver Dealers’ Association (NEGOSIDA), the price of gold saw a continuous fall due to in- stability in the crude price in the global market. “The US dollar has also showed some improve- ment,” says NEGOSIDA. The precious yellow metal in the local bullion market opened at Rs 20,200 per 10 gram on Sun- day. On Monday, it remained constant but again dipped by Rs 140 on Tuesday to Rs 20,060 per 10 gram. On Wednesday it con- tinued to plunge by Rs 360 to Rs 19,700. But it rebounced by Rs 40 on Thursday to Rs 19,740. And it closed at Rs 19,675, Rs 65 less per 10 gram on Friday, the last day of this week’s trading. In the international market also, gold touched $902 per ounce in the beginning of this week. But it closed at $772 per ounce. However, unlike last week, sil- ver price witnessed a steady fall this week. It opened at Rs 401 per 10 gram on Sunday and continu- ously fall to R 395 on Tuesday, Rs 388.50 on Wednesday and closed at Rs 386 on Friday.
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