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Saturday, July 4, 2009

Weak investor sentiment squeezes NEPSE

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The market continued to remain bearish as investor sentiment deteriorated throughout the week. The NEPSE index registered losses on four consecutive days till Wednesday mainly due to increases in the price of Nepal Telecom (+Rs. 10) and Bank of Kathmandu (+Rs. 146) shares. The highlight of the week was the reconciliation among directors from the feuding factions at the Bank of Kathmandu.

A Special General Meeting has been called on July 22 to elect a new board to which Nepal Rastra Bank will subsequently hand over the management. Meanwhile, the Public Development Bank issued its IPO this week and it has reportedly been oversubscribed by almost 20 times. The rush of investors towards the primary market in the last few weeks has been a major factor in NEPSE´s downturn in recent weeks. The index declined by 0.47% this week to 667.43.

Financial institutions were the key players this week as they topped the gainers´ as well as losers´ charts. Though Fewa Finance (+Rs. 90) which is issuing 1:2 rights shares topped the gainers´ chart along with Lalitpur Finance (+Rs. 85), the Finance sub-index slipped slightly (-0.66%) after a high gain last week. Among the sectors, Hydropower (+0.77%) was the biggest gainer. Butwal Power Company (+Rs. 20) and National Hydro Power (+Rs. 6) contributed to the sector´s gain. Commercial Banking (-0.75%) was the biggest loser as most major banks-- Nabil Bank (-Rs. 70), Himalayan Bank (-Rs. 50) and Standard Chartered (-Rs. 35) -- registered a decline. Insurance (-0.46%) declined as well. Development Banking (+0.06%) registered a slight increase.

The market turnover for the week was Rs. 462,619,746 -- a 103.88% increase over last week. However, mutual transactions of National Hydro Power Company (Rs. 71,735,580), Nepal Bangladesh Bank (Rs. 60,212,225) and Nepal Credit and Commerce Bank (Rs. 58,297,580) accounted for 45.97% of the week´s total turnover. NB Group which is also a major investor in both aforementioned banks, sold 800,000 shares of National Hydro Power to Rajdhani Investment Fund on July 1. If these transactions are not taken into account, and the market turnover for only ordinary shares is tallied, market turnover in fact decreased by 8.11% from last week to Rs. 206,676,380-- a low figure in terms of market activity. Technical analysis indicators signal a continuation of the bearish trend for next week.
Source: Republica
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SEBON gets tough on rights shares

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The Security Board of Nepal (SEBON) will allow companies to issue rights shares only after the basic shareholders (bigger shareholders) have purchased the required number of rights shares. The basic shareholders are those who own more than 1 percent of the stock in companies whose paid-up capital is more than Rs. 250 million and those who own more than 5 percent of the stock in companies whose paid-up capital is less than Rs. 250 million, according to the Company Act.

SEBON chairman Surbir Poudel said that the stock regulator in a directive issued last week took such a move to tackle the promoters' tendency of not purchasing rights shares especially if the company was incurring loss.

The promoters of Nepal Development Bank, which is likely to be liquidated, didn't purchase rights shares although they urged ordinary shareholders to purchase as much as they liked. Amongst the promoters, only Uttam Pun and Sananda Shrestha from their respective groups had purchased a few rights shares of NDB. "NDB's case is an eye-opener for us," said Poudel.

The crisis-ridden bank had managed to generate only Rs. 80 million although it sought to collect Rs. 320 million through rights shares issuance. The ordinary shareholders are now agitating asking for their money back.

President of Nepal Bankers Association Sashin Joshi, however, was of the view that basic shareholders should also be given freedom to decide whether to purchase rights shares or not. "The case of NDB should not be generalized to end an individual's right to choose," he said. He was, however, of the view that there should be a full disclosure.

As per the new directive, SEBON has made a new provision that if all the rights shares are not purchased, the remaining shares should be sold through auction. "The promoters of some companies were found to have shared the remaining shares among themselves secretly depriving prospective investors the opportunity to buy rights shares," Poudel said. "The new provision allows all to compete for additional rights shares, which also contributes largely to increasing capital in the company."

With financial institutions required to increase capital as per the new Nepal Rastra Bank's rule, many are issuing rights shares for the purpose. SEBON has also barred share applicants from paying through bank draft during initial public offering (IPOs) in places where collection centres exist. "But people can send the forms through draft where there are no collection centers," said a SEBON official.
Source: Ekantipur
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SBL in Rupandehi

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Siddharth Bank Ltd (SBL) has expanded its service to Butwal and Bhairahawa of Rupandehi district. The bank opened its Butwal branch on Wednesday and Bhairahawa branch on Thursday. "We earned a profit of Rs 350.28 million in the last 11 months of the current fiscal year on an investment of Rs 13.30 billion," said the bank that has total deposit of Rs 15.22 billion.
Source: THT
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Ace Opens Three New Branches

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Ace Development Bank has opened three new branches at Jawalakhel in Lalitpur, Parsa Bazaar in Chitwan and Urlabari in Morang district. The chairman of the bank, Yogendra Shakya, inaugurated the Jawalakhel branch amid a function on Thursday, says a press release.

The operation of the new branches has raised the number of branches of Ace to six. On the occasion, the bank also unveiled a new deposit scheme named Ace Rhino Super, which yields a minimum of 9 percent interest per annum. The offer will be valid for a week, states the release.

Moreover, the bank has announced that its paid-up capital has reached Rs 750.4 million after the successful rights issue that closed last week. This has made the bank the highest capitalized national-level development bank of Nepal.

Source:
myrepublica.com
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Bank accounts frozen

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In the process of implementing a verdict handed down by Kathmandu District Court, Nepal Rastra Bank has directed all the banks and financial institutions to freeze the bank accounts belonging to Everest Hotel, Kathmandu Medical College and Pushkar Nath Pant, a businessman.

According to concerned officials, the directive was issued Thursday after Everest Hotel was found refusing to pay Rs 1.8 million to a supplier, Likewise, bank accounts of Nepal Medical College and businessman Pant were frozen after they were found guilty of financial irregularities.
Source: Republica
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NRB report on macro-economic situation: Double-digit inflation continues

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Inflation has been raging in double digits in Nepal while prices are on a downward trend in neighbouring India. Despite the country's heavy dependence on Indian goods, reduced prices there had no effect on prices here.
According to the latest statistics of Nepal Rastra Bank (NRB), inflation rose by 12.9 percent in mid-May this year. The price rise was 13.1 percent in the first month of the current fiscal year which continued to remain in the double digits till mid-May. Nepal's balance of trade with India is negative by Rs. 94.4 billion.
The higher inflation was caused mainly by price rises in food and beverages which grew by 16.5 percent during the first 10 months of the current fiscal year. Sugar prices were up 66.9 percent while vegetables and fruits rose 33.5 percent.
Now the good news. The inflow of remittances to Nepal continued to rise despite the worldwide recession which has resulted in huge job losses.
According to the latest NRB report on the country's macro-economic situation, remittances grew by 55.5 percent to Rs. 169 billion in the first 10 months of the fiscal year against Rs. 108 billion during the same period last year.
The country's exports also saw a significant growth of 19.8 percent during the review period although they had declined by 2.4 percent last year. Imports too surged by 25.4 percent.
Exports to India rose 10.5 percent to Rs. 35 billion this year against a 7.4 percent decline last year. Exports to third countries posted a spectacular surge of 38.8 percent compared to a growth of 9.8 percent last year.
A rise in the export of readymade garments, textiles, GI pipes, catechu and tooth paste was mainly responsible for the increase in exports to India.
Third-country exports swelled as a result of an increase in the export of pulses, pashmina, woollen carpets, readymade garments and handicraft.
Meanwhile, imports from India went up by 11.5 percent in the review period compared to a growth of 25.7 percent in the corresponding period last year. Imports from third countries also soared by 50.4 percent to Rs. 98 billion. The growth rate last year was 3.7 percent with imports amounting to Rs. 65 billion.
Credit issued to the private sector by commercial banks expanded by 24.2 percent this year against a growth of 24.9 percent last year. Credit growth in production, construction, metal production, machinery and electrical tools, transportation, communication, public services, trading and the service sector remained low during the review period. Credit issued to transportation equipment production and the fitting and consumable sectors saw a good increase during the period.The government performed poorly in spending the development budget during the review period. Capital expenditure increased by just 11.4 percent to Rs. 26 billion in contrast to an increase of 55.6 percent in the same period last year. As a result of the government's failure to spend the development budget, it has a cash surplus of Rs. 21.6 billion with NRB.
The incredibly higher revenue growth and low expenditure caused the budget surplus of Rs. 6 billion in the review period this year against a deficit of equal amount in the corresponding period last year.
Source: Ekantipur
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NDB liquidation: NRB moves to court NDB promoters fined

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Nepal Rastra Bank (NRB) registered an application at the Patan Appellate Court on Friday seeking liquidation of crisis-ridden Nepal Development Bank (NDB).
It is the first ever instance of any financial institution being taken to court for liquidation.
"We filed the application at 2.45 p.m. asking the court to appoint a liquidator," said Dharma Raj Subedi, director of NRB who oversees the legal department.
"We also requested the court to order the liquidator to pay off the money belonging to ordinary depositors as soon as possible."
In the application running to more than 20 pages, the central bank has responded to the allegations made by the promoters of NDB in their clarification submitted to the central bank before it decided on liquidation, said Subedi.
The depositors have been asking the central bank to facilitate an early withdrawal of their deposits worth around Rs. 190 million.
The Appellate Court has fixed the hearing on July 5, said Subedi. The court may ask the defendant to submit its clarification before deciding whether to appoint a liquidator or not as per the Insolvency Act.
In addition to the ordinary depositors' money, the Employees Provident Fund and the Nepal Army also have deposits of Rs. 331 million and Rs. 180 million respectively in NDB. They have been urging the central bank that they should be treated equally if the bank is liquidated.
The Bank and Financial Institution Act (BAFIA) has given first priority to ordinary depositors after the liquidator's expenses followed by fixed depositors and then only other types of depositors.
"Institutional depositors have been classified as other types of depositors," Subedi said.
Meanwhile, the central bank has fined the chairman and directors of NDB for falsifying their report about their involvement in other financial institutions.
According to NRB, it has slapped a penalty of Rs. 200,000 on NDB chairman Amar Gurung and Rs. 100,000 each on the directors for sitting on the board of both NDB and Nepal Cooperative. The law prohibits directors of one financial institution for sitting on the board of other financial institutions.
After NRB initiated the liquidation process in the first week of June, the central bank found that NDB chairman Amar Gurung was also chairman of Nepal Cooperative where NDB had deposits of Rs. 90 million. Likewise, NDB's directors Kiran Joshi and Lab Raj Joshi are also directors of both institutions.
NRB had sought clarification from three NDB promoters in the first week of June why they should not be penalised for being involved in the board of both institutions.
Source: Ekantipur
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Gold fluctuates, transactions don’t

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The gold domestic market this week opened at Rs 23,790 per 10 gram. With a fall of Rs 85 gold on Monday got traded for Rs 23,705. On Tuesday, gold rose by Rs 45 to Rs 23,750 per 10 gram. On Wednesday, gold price again fell to Rs 23,575 — a decline of Rs 175, It, however gained Rs 45 on Thursday with gold per 10 gram trading for Rs 23,620. The market closed at Rs 23,665 on Friday, a Rs 45 increase compared to Thursday, said Nepal Gold and Silver Dealers’ Association (NEGOSIDA).
According to NEGOSIDA president Tej Ratna Shakya, though the gold price is fluctuating people’s buying capacity is the same. Due to the Nepali tradition and people’s interest in gold, gold price hikes rarely affect the number of transactions, except in the off season. “In the domestic market, we have recorded normal transaction of 10 kg per,” Shakya said.
The international market price of gold last Friday was $939 per ounce, which after a number of fluctuations went down to $933 per ounce this Friday, said NEGOSIDA.
Meanwhile, silver per 10 gram was traded for Rs 375.50 on Sunday. It saw a slight fall in price to Rs 373 per 10 gram on Monday.
On Tuesday, silver was priced at Rs 371 and on Wednesday dropped to
Rs 367.
With yet another fall of Rs 5, the trading price was Rs 362 on Thursday. Silver closed at Rs 357 per 10 gram on Friday.
Source: THT
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21st Branch of BoAN

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The Bank of Asia Nepal Limited has opened its 21st branch at Kaushaltar of Bhaktapur. Mr. Trilok Chandra Agrawal, chairman of the bank, inaugurated the new branch amidst a function on Wednesday.

Through this branch, customers will be have access to modern banking services and facilities . The bank has already launched ‘BoA Nari Shakti Saving’ and ‘BoA Fifty Plus Saving Accounts’ with a view to encouraging women to participate in saving schemes.

The bank has been providing 7 per cent interest under this scheme, the bank said.

Source: Artha ko Artha
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3rd Quarter Company Anaysis (2065/66): GMFIL

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Guheshwori Merchant Banking & Fin. Ltd. has published its third quarter company analysis of fiscal year 2065/66.
Source: Jamb News Service
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3rd Quarter Company Anaysis (2065/66): NDFL

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Nava Durga Finance Co. Ltd. has published its third quarter company analysis of fiscal year 2065/66.
Source: Jamb News Service
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3rd Quarter Financial Report (2065/66): NTC

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Nepal Telecom has posted Rs. 7.653 billion net profit (unaudited figure) for the 3rd quarter of fiscal year 2065/66.
Source: Jamb News Service
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Redeemable Bond Issue: NRB

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Nepal Rastra Bank is issuing 7 years redeemable bond named "Development Bond 2073 Ka" at 9% interest rate from 12th July 2009 (2066 Ashad 28). The bid quotations are to be submitted by 9th June 2009 (2066 Ashad 25).
Source: Jamb News Service
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Thursday, July 2, 2009

Today's Share Price (As of 2009-07-02)

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S.No.Traded CompaniesNo.of TransactionMax. PriceMin. PriceClosing PriceTotal ShareAmountPrevious ClosingDifference Rs.
1Annapurna Bikash Bank Limited342041542021589,7254200
2Ace Development Bank Limited104764654651,369641,035475-10
3Bank of Asia Nepal Limited1404604504607,3903,366,7004555
4Bank of Kathmandu481,6261,4801,6263,5715,346,9751,480146
5Clean Energy Development Bank Limited468007508003,4802,719,57076040
6Chilime Hydro power Co.11,1151,1151,115350390,2501,09520
7Citizens Bank International Limited445365155362,7301,421,04051719
8DCBL Bank Ltd.63653453651,068369,01835015
9Everest Bank Ltd42,2502,2402,245264592,9302,2441
10Everest Bank Limited Convertible Preference19429429421514,130961-19
11Fewa Finance Co. Ltd.45735415734022,27053142
12Global Bank Limited135104925101,200603,37050010
13Himalayan Bank Ltd.11,5301,5301,530500765,0001,540-10
14ICFC Bittya Sanstha Ltd.234454304452,112923,032450-5
15Infrastructure Development Bank Limited55104735108038,93046446
16International Leasing And Fin. Co.55705555601,276720,4705537
17IME Financial Institution129339009101,1401,031,7259100
18Kaski Finance Limited3800795795170135,8507914
19Kumari Bank Ltd4610595610439263,99458525
20KIST Bank Limited334034034027593,500341-1
21Laxmi Bank Limited1093593593510093,500953-18
22Lalitpur Finance Ltd.18008008005241,6008000
23Lumbini Bank Ltd.133953583953,0601,137,67136035
24Machhachapuchhre Bank Ltd174043893902,6681,048,588410-20
25Merchant Finance Company Limited22702702704010,8002700
26Nabil Bank Ltd.74,2054,1954,2057853,296,9924,1996
27Nepal Bangladesh Bank Ltd.12240235240251,94560,212,2252391
28Nepal Credit And Com. Bank19295285290204,46058,297,5802900
29Nepal Credit And Commercial Bank Ltd. Promoter Share5196184184200,00037,351,382200-16
30National Hydro Power Co.48100929757,0105,440,460916
31Nepal Investment Bank Ltd.61,1471,1391,140531605,9661,150-10
32Nepal Industrial And Co.Bank3945940945166156,670950-5
33NMB Bank Ltd.9410401410910367,2204019
34Nepal Share Markets Ltd.82502452501,325329,7102500
35Nepal Doorsanchar Company Limited6550540550570309,25054010
36Peoples Finance Limited.9295275275856242,543301-26
37Pokhara Finance Ltd.140540540518072,9004050
38Premier Insurance co. Ltd.1190190190346,460192-2
39Pashupati Development Bank Limited954564474472,160972,8504407
40Reliable Finance Limited16256256252012,5006250
41Sanima Vikash Bank Ltd.259459459416095,0405904
42Nepal SBI Bank Limited111,7321,7151,7321,9043,286,0561,72210
43Siddhartha Bank Limited4885870885327286,12286916
44Shikhar Bittiya Sanstha Limited542492432461,220302,2302451
45Standard Chartered Bank Ltd.75,6255,5805,6257033,943,5785,6205
46Siddhartha Development Bank Limited1244244244540131,7602404
47Shrijana Finance(Bittiya Sa1113113113505,6501112
48Sagarmatha Merchant Banking And Finance Limited76476356477044,5706470
49Standard Finance Ltd.63923603609134,361400-40
50Subhechha Bikas Bank Limited1619619619106,190631-12
51Swabalamwan Bikash Bank11571560560352198,784573-13
52Triveni Bikas Bank Limited26206156204024,700625-5
53United Finance Ltd6790771771695544,7657710

Total Traded Amount Rs.:198,460,187
Total Traded Shares:760,718
Total Transactions:762

Source: nepalstock.com
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