NEPSE incline by 0.73 to 579.41; hefty transaction of NCC Bank

Making a see-saw movement, the market index came to avoid a loss by the end of today’s session to sustain in green. The secondary market managed to prolong its incline by a further 0.73 points, to close at 579.41 levels.

The stock index today faced pressure from both buyer and seller parties attributing to zigzag movement in today’s trade. Beginning its trade from yesterday’s closing, the market came to increase up to 580 levels then gradually decreased to 577 levels. Later again, it made the same cycle of up and down before concluding to today’s closing.

Despite the market unsteady transition, the participation today increment by 36.85 percent to stand at Rs 180,692,062. As more and more investors are entering the market following the low interest rate and lack of investment opportunity, the turnover of the market seems to be in increasing trend.

Altogether 654,476 units of shares were traded through 2,120 units. The market capitalization at the end of the day stood at Rs 587,677.24 millions.

Alongside the healthy propel of market turnover, the transactions of Nepal Credit And Com. Bank (NCCB), closed at Rs 280, also made a massive surge. The company’s turnover today amount to Rs 33,153,624 which is approx. 200 percent higher than that of the second highest turnover.

In total, 120,365 units of NCCB’s shares were traded through 177 transactions. As the company ‘s paid up capital is far below than that of set by Nepal Rastra Bank i.e. of Rs 2 billion, the investors are eyeing this scrip in expectation of hefty return in a future date.

Along with it, standing NB group’s bad loans in the NCCB are in a high chance of being recovered from the remaining amount from the NBB and IFIC, Bangladesh deal which has further lured the investors towards this company.

The broker with the highest standalone dealing of the NCCB was Broker No 56 (Sri Hari Securities Pvt. Ltd.) with 35.69%; totaling 85,910 units worth Rs 23,664,660 which was carried out by 142 transactions-- includes 1 matching transaction tallying 50 units amounting Rs 14,000.

As for the movement of sectors, Hotels suffered the hefty loss of 8.92 points followed by Hydro with 3.16 points. Similarly, Banking, Development and Manufacturing plunged by 0.75, 0.09 and 0.47 points respectively.

While, Insurance made gains of 25.99 points alongside 4.69 points incline of Others and 0.08 growth of Finance.

 All in all, 98 scrips were traded, out of which 38 scrips gained, 16 remained intact and 44 scrips lost.

The best performer among the traded scrips was of Purnima Bikas Bank Limited (PUDBL), closed at 106, with a gain of Rs 10 or 9.62 percent. Whereas, Hamro BIkas Bank Limited (HAMRO), closed at Rs 148, was the worst performer with Rs 12 or 7.5 percent loss.

FOUR COMPANIES PROPOSED DIVIDEND

Global IME Bank Ltd., Nepal Investment Bank Ltd., Tourism Development Bank Ltd. and Rural Microfinance Development Centre Ltd. today proposed to distribute dividends to its shareholders from the earning of FY 2069/70.

Global IME Bank Ltd. has wished to offer 15 percent bonus share to its shareholders, whereas, Nepal Investment Bank Ltd. has announced to give 25 percent cash and 10 percent bonus to its shareholders.

Similarly, Tourism Development Bank Ltd. has proposed to give 11 percent cash dividend to its shareholders and Rural Microfinance Development Centre Ltd.  has planned to provide 15 percent cash dividend to its shareholders.

However, the entire above proposals are subject to approval from the respective company’s upcoming AGM and from the Nepal Rastra Bank.