Nepse this week plunged by 22.94 points to close at 578.19 points from Sunday morning's opening of 601.13 points.
Psycological pressure of book closures, fresh supply of stocks, financial institutions margin call -- due to continuous decrease in price of shares -- made investors more nervous forcing them to exit from the market.
In comparision to the new listing, the number of investors did not increase giving some smart investors a chance to sell off their shares at the current price and buy at a much lower price afterwards as according to them, the secondary market index is expected to drop further.
This week itself, primary shares of Sunrise Bank (12.5-million-units), Prime Comercial Bank (10-million-units), Vibor Bikas Bank (6.8-million-units) and rights shares of Civil Merchant Bittiya Sanstha (4,99,270-units), People's Finance (666962-units), Pokhara Finance (12,720-units), Narayani Development Bank (99884-units) and Nirdhan Utthan Bank (20,9936-units) were listed at Nepal Stock Exchange, making the total number of listed shares over 928.72-million-units, including promoters' shares, corporate debentures, bonds, preferred shares and mutual funds.
Of the total 26 commercial banks, Nepse has 23 commercial banks (with over 281.56-million-unit shares) under its banks sub-group that is the key player in the domestic market. Of the remaining three commercial banks, Nepal Bank Ltd has been delisted, Agricuture Development Bank is floating its shares worth Rs 960 million soon and Rastriya Banijya Bank is a complete government undertaking.
Thirty 30 development banks are listed at Nepse in the development banks sub-group with a total of over 66.34-million-unit shares. Sixty-two finance companies are listed at Nepse with 81,932,204-unit shares.
Though there are 18 companies in the manufacturing sub-group, the sub-group is the least traded and the weakest player in the domestic secondary market unlike the global secondary market practice.
Market pandits think that the institutional investor is the need of the hour as the existing investors are unable to hold the fresh supply of shares. Apart from the nervousness of current investors, the continuous bearish trend has repelled new investors from the secondary market as the major market player -- commercial banks sub-group -- this week also lost a whopping 34.69 points to close at 552.19 points from Sunday morning's opening of 586.88 points.
Bank of Kathmandu topped the chart in terms of transaction this week with Rs 31.19 million followed by Kist Bank with Rs 27.59 million, Nepal SBI Bank with Rs 26.20 million, Standard Chartered Bank Nepal with Rs 20.57 million and Nabil Bank with Rs 14.70 million.
In terms of number of share units traded this week, Kist Bank dominated the secondary market with its 76,000-unit of shares changing hands. Pashupati Development Bank topped the chart in terms of transaction number with 566 tradings in its kitty.
During the five-day session, 95 companies saw their shares being traded. The contribution of Group-A companies increased to 64.48 per cent against last week's 56.48 per cent while the 78-scrip sensitive index -- a barometer of Group-A companies -- also lost 7.20 points to drop to 144.57 from Sunday morning's opening of 151.77 points.
The float index -- calculated on the basis of real transactions -- also dropped by 1.22 points to slide to 56.26 points from its opening of 57.48 points.
Saturday, October 31, 2009
Friday, October 30, 2009
Asian Life's primary issue oversubscribes, closes
Asian Life Insurance's primary issue closed today after it was oversubscribed more than sixteen fold.
"By the end of today we expect the collection to exceed Rs 1.65 billion," said Ramesh Bhattarai, chief executive officer of Asian Life Insurance.
The Initial Public Offer (IPO) worth Rs 108 million of 10,80,000-units at a face value of Rs 100 per unit -- was floated on October 27.
"After this public issue worth Rs 108 million, the paid-up capital of the company will be Rs 360 million," he said adding there is Rs 252 million paid-up capital at present.
At a time when the secondary market has been performing poorly, the encouraging response has shown that there is still an attraction for primary issue. "People may have found the IPO more lucrative as there has been no IPO for some time," Bhattarai said.
Contrary to the banks and financial institutions, insurance companies declare bonus only once in three years.
Of the total issue, 43,200-units are meant for the staff of the company. Contrary to other public issues, the company has allowed people to apply for minimum 10-units also. The maximum limit for application was upto 20,000-units.
After complaints about fake applications, Securities Board of Nepal (Sebon) has made it mandatory to apply with photo and bank account number for the primary issue.
The regulatory authority of the capital market permitted the company on September 16 to go public and the Company Registrar's Office gave the go-ahead on October 8.
NIDC Capital Markets was the issue and sales manager of the insurance company that has -- according to unaudited accounts -- posted Rs 3.32 million profit in the fiscal year 2008-09. The company has projected Rs 15.29 million profit for this fiscal year. According to its prospectus, it is not going to give any dividend for another three years.
Asian will be the 18th listed insurance company in Nepse as there are already 17 listed insurance companies -- under Nepse's insurance companies sub-group -- with a total of 20,703,504-unit shares at Rs 100 face value making a total total paid up worth Rs 2,070,350,400.
Meanwhile, Prime Life Insurance also is in the pipeline for issuing primary shares to the public.
"By the end of today we expect the collection to exceed Rs 1.65 billion," said Ramesh Bhattarai, chief executive officer of Asian Life Insurance.
The Initial Public Offer (IPO) worth Rs 108 million of 10,80,000-units at a face value of Rs 100 per unit -- was floated on October 27.
"After this public issue worth Rs 108 million, the paid-up capital of the company will be Rs 360 million," he said adding there is Rs 252 million paid-up capital at present.
At a time when the secondary market has been performing poorly, the encouraging response has shown that there is still an attraction for primary issue. "People may have found the IPO more lucrative as there has been no IPO for some time," Bhattarai said.
Contrary to the banks and financial institutions, insurance companies declare bonus only once in three years.
Of the total issue, 43,200-units are meant for the staff of the company. Contrary to other public issues, the company has allowed people to apply for minimum 10-units also. The maximum limit for application was upto 20,000-units.
After complaints about fake applications, Securities Board of Nepal (Sebon) has made it mandatory to apply with photo and bank account number for the primary issue.
The regulatory authority of the capital market permitted the company on September 16 to go public and the Company Registrar's Office gave the go-ahead on October 8.
NIDC Capital Markets was the issue and sales manager of the insurance company that has -- according to unaudited accounts -- posted Rs 3.32 million profit in the fiscal year 2008-09. The company has projected Rs 15.29 million profit for this fiscal year. According to its prospectus, it is not going to give any dividend for another three years.
Asian will be the 18th listed insurance company in Nepse as there are already 17 listed insurance companies -- under Nepse's insurance companies sub-group -- with a total of 20,703,504-unit shares at Rs 100 face value making a total total paid up worth Rs 2,070,350,400.
Meanwhile, Prime Life Insurance also is in the pipeline for issuing primary shares to the public.
Thursday, October 29, 2009
Revenue collection exceeds target
The finance ministry exceeded its taget of Rs Rs 28.61 billion and collected Rs 34.32 billion revenue by the third month (September 15-October 15) of the current fiscal year.
"The collection is also 53 per cent higher than the collection in the same month last year," said revenue secretary Krishna Hari Baskota. During the same month last fiscal year, the the collection was Rs 22.3 billion.
Finance Minister Surendra Pandey in his budget -- for the fiscal year 2009-10 -- presented on July 13 has set a revenue target of Rs 176.5 billion -- over Rs 33 billion than his predesessor former finance minister Dr Baburam Bhattarai, who has set revenue target for the fiscal year 2008-09 at Rs 141.72 billion.
However, the ministry has exceeded the revenue collection as it had collected Rs 143.5 billion by the end of the fiscal year. "In the recent years, revenue collection has been increasing," he said adding that the appointment of a separate secretary to look after revenue has made a sense. Then finance minister Dr Ram Sharan Mahat created a separate revenue secretary to monitor the collection of revenue as the revenue collection has alsways been a headache then.
Though the contribution of Value Added Tax (VAT) in the total revenue is highest, this month also observed a fair growth of excise and customs. "But the VAT is still the highest among the tax heads," revenue secreatry added.
By the end of second month of the fiscal year, the government had collected Rs 22.55 billion revenue -- 54.5 per cent higher than the collection in the same period of last fiscal year that was Rs 14.58 billion.
For the first month of this fiscal year, the collection was Rs 11.74 billion against the target of Rs 9.78 billion.
In an average the ministry has set target of Rs 9 billion for each of first, second and third months but it collected Rs 11 billion in an average. The encouraging collection is contributed to leakage control, higher valuation in customs and tax complaince.
The finance minister has set revenue target of Rs 176.50 billion -- Rs 150.24 billion from tax revenue and Rs 26.25 billion from non-tax revenue -- for this fiscal year, when he had announced his accommodative budget of Rs 285.93 billion.
However, the encouraging collection of revenue has made little sense as Madhav Kumar Nepal-led government has not been able to spend on development activities.
Budget Blues
KATHMANDU: The government will run out of expenses in less than a month if it cannot pass the budget due to opposition United Communist Party of Nepal (Marxist) protests in parliament. "But it will not affect revenue collection," Baskota said adding that the ministry can, however, collect the revenue till the six month that is till January 15. "We can collect revenue till the six months even if the budget doesnot pass," he informed. The parliament must approve this fiscal year's budget by the middle of November or face a likely shutdown of the administration, with the government unable to pay employees. Due to delay in passing the budget, government has been facing problems in development expenditure and the trend has encouraged spending of development budget at the end of fiscal year on the party cadres.
The target and collection
For first month (July-August) -- Rs 9.78 billion (Target) -- Rs 11.74 billion (Collection)
By second month (August-September) -- Rs 19.03 billion (T) -- Rs 22.55 billion (C)
By third month (September-October) -- Rs 28.61 billion (T) -- Rs 34.32 billion (C)
"The collection is also 53 per cent higher than the collection in the same month last year," said revenue secretary Krishna Hari Baskota. During the same month last fiscal year, the the collection was Rs 22.3 billion.
Finance Minister Surendra Pandey in his budget -- for the fiscal year 2009-10 -- presented on July 13 has set a revenue target of Rs 176.5 billion -- over Rs 33 billion than his predesessor former finance minister Dr Baburam Bhattarai, who has set revenue target for the fiscal year 2008-09 at Rs 141.72 billion.
However, the ministry has exceeded the revenue collection as it had collected Rs 143.5 billion by the end of the fiscal year. "In the recent years, revenue collection has been increasing," he said adding that the appointment of a separate secretary to look after revenue has made a sense. Then finance minister Dr Ram Sharan Mahat created a separate revenue secretary to monitor the collection of revenue as the revenue collection has alsways been a headache then.
Though the contribution of Value Added Tax (VAT) in the total revenue is highest, this month also observed a fair growth of excise and customs. "But the VAT is still the highest among the tax heads," revenue secreatry added.
By the end of second month of the fiscal year, the government had collected Rs 22.55 billion revenue -- 54.5 per cent higher than the collection in the same period of last fiscal year that was Rs 14.58 billion.
For the first month of this fiscal year, the collection was Rs 11.74 billion against the target of Rs 9.78 billion.
In an average the ministry has set target of Rs 9 billion for each of first, second and third months but it collected Rs 11 billion in an average. The encouraging collection is contributed to leakage control, higher valuation in customs and tax complaince.
The finance minister has set revenue target of Rs 176.50 billion -- Rs 150.24 billion from tax revenue and Rs 26.25 billion from non-tax revenue -- for this fiscal year, when he had announced his accommodative budget of Rs 285.93 billion.
However, the encouraging collection of revenue has made little sense as Madhav Kumar Nepal-led government has not been able to spend on development activities.
Budget Blues
KATHMANDU: The government will run out of expenses in less than a month if it cannot pass the budget due to opposition United Communist Party of Nepal (Marxist) protests in parliament. "But it will not affect revenue collection," Baskota said adding that the ministry can, however, collect the revenue till the six month that is till January 15. "We can collect revenue till the six months even if the budget doesnot pass," he informed. The parliament must approve this fiscal year's budget by the middle of November or face a likely shutdown of the administration, with the government unable to pay employees. Due to delay in passing the budget, government has been facing problems in development expenditure and the trend has encouraged spending of development budget at the end of fiscal year on the party cadres.
The target and collection
For first month (July-August) -- Rs 9.78 billion (Target) -- Rs 11.74 billion (Collection)
By second month (August-September) -- Rs 19.03 billion (T) -- Rs 22.55 billion (C)
By third month (September-October) -- Rs 28.61 billion (T) -- Rs 34.32 billion (C)
SAARC Trade portal launched
Minister for Commerce and Supplies Rajendra Mahato today launched official SAARC Trade Information portal in the valley.
The portal will be a single point of access for all current SAARC-related business and trade information as it is will have data from all the eight SAARC countries.
It will also be continuously validated by 26 regional and national partners from both the private and public sectors of the region.Secretary General of SAARC Dr Sheel Kant Sharma and trade ministers from SAARC countries were present in the launching ceremony.
The initiators of the portal, SAARC Information Centre (SIC) and German Technical Cooperation (GTZ), pursue the approach that having access to reliable trade information generates additional business because more and better information facilitates faster, more efficient and more cost-effective ways to realise intra-regional trading and business opportunities. As a result, successful business will create more employment and thus contribute the socio-economic development in the SAARC region, said the SIC.
The data displayed in the portal will be reliable to make business decisions. Business — especially Small and Medium-Sized Enterprises (SMEs) — of SAARC region can get much benefit from the information in developing their business and markets, it is hoped.
The portal will be a single point of access for all current SAARC-related business and trade information as it is will have data from all the eight SAARC countries.
It will also be continuously validated by 26 regional and national partners from both the private and public sectors of the region.Secretary General of SAARC Dr Sheel Kant Sharma and trade ministers from SAARC countries were present in the launching ceremony.
The initiators of the portal, SAARC Information Centre (SIC) and German Technical Cooperation (GTZ), pursue the approach that having access to reliable trade information generates additional business because more and better information facilitates faster, more efficient and more cost-effective ways to realise intra-regional trading and business opportunities. As a result, successful business will create more employment and thus contribute the socio-economic development in the SAARC region, said the SIC.
The data displayed in the portal will be reliable to make business decisions. Business — especially Small and Medium-Sized Enterprises (SMEs) — of SAARC region can get much benefit from the information in developing their business and markets, it is hoped.
Wednesday, October 28, 2009
NAC wants to lease one aircraft for international flight
The national flag carrier is seeking to lease one aircraft from January for six weeks as one of its Boeing is going for a regular C check to Israel.
"Nepal Airlines Corporation (NAC) is sending its Boeing for a regular C check," executive chairman Sugat Ratna Kansakar said adding that an aircraft will be leased to maintain the scheduled flights and reliability of the carrier.
The aircraft is required to operate flights from its Kathmandu base for the Kathmandu-New Delhi-Kathmandu sector everyday and Kathmandu-Dubai-Doha-Kathmandu four times a week. "Since it will still be the tourist season, we do not want to disturb the schedule," he added.
However, NAC managing director Captain K B Limbu thinks that it is not economically viable to lease an aircraft for a short term. "It's not necessary to lease aircraft for a short term," he said adding that NAC can fly its passengers on another low-cost airlines for six weeks.
Kansakar explained that if it will not be economically viable, NAC may rethink the leasing idea.
NAC has asked for an aircraft that should not be older than 15 years from the date of manufacture on Aircraft, Crew, Maintenance and Insurance (wet lease) -- ACMI -- basis for six weeks begining January 3 with a total number of 375 guaranteed blocks hours during six weeks.
The interested parties should send their offers with detailed specification, manufacturing date, configuration, present registration number, valid insurance, present owner, present operator of the aircraft and ACMI rate per block hour within November 12, said NAC.
The aircraft should have 150 to 200 seat capacity and delivery and re-delivery of aircraft will be in Doha. "The national flag-carrier will decide whether to lease or not on the basis of ACMI rate per block hour," Kansakar said.
NAC is connected to 10 major cities around the globe and flies to 30 destinations domestically. It has two Boeing 757-200 aircraft -- Karnali and Gandaki -- since the 1980s. It has always been in controversy while leasing aircraft.
However, it has recently decided to buy two aircraft -- a wide body A330-200 with a seat capacity of 279 and a narrow body A320-200 with 150 seat capacity -- from the European manufacturer Airbus soon.
Currently, around two dozen international airlines are flying to Kathmandu and the ailing national carrier has been limited to its few destination due to lack of aircraft and over-politicisation of the management. It is facing troubles on the international and domestic fronts too as its domestic fleet has six Twin Otter Aircraft with 19-seat capacity but only four of these are operational.
"Nepal Airlines Corporation (NAC) is sending its Boeing for a regular C check," executive chairman Sugat Ratna Kansakar said adding that an aircraft will be leased to maintain the scheduled flights and reliability of the carrier.
The aircraft is required to operate flights from its Kathmandu base for the Kathmandu-New Delhi-Kathmandu sector everyday and Kathmandu-Dubai-Doha-Kathmandu four times a week. "Since it will still be the tourist season, we do not want to disturb the schedule," he added.
However, NAC managing director Captain K B Limbu thinks that it is not economically viable to lease an aircraft for a short term. "It's not necessary to lease aircraft for a short term," he said adding that NAC can fly its passengers on another low-cost airlines for six weeks.
Kansakar explained that if it will not be economically viable, NAC may rethink the leasing idea.
NAC has asked for an aircraft that should not be older than 15 years from the date of manufacture on Aircraft, Crew, Maintenance and Insurance (wet lease) -- ACMI -- basis for six weeks begining January 3 with a total number of 375 guaranteed blocks hours during six weeks.
The interested parties should send their offers with detailed specification, manufacturing date, configuration, present registration number, valid insurance, present owner, present operator of the aircraft and ACMI rate per block hour within November 12, said NAC.
The aircraft should have 150 to 200 seat capacity and delivery and re-delivery of aircraft will be in Doha. "The national flag-carrier will decide whether to lease or not on the basis of ACMI rate per block hour," Kansakar said.
NAC is connected to 10 major cities around the globe and flies to 30 destinations domestically. It has two Boeing 757-200 aircraft -- Karnali and Gandaki -- since the 1980s. It has always been in controversy while leasing aircraft.
However, it has recently decided to buy two aircraft -- a wide body A330-200 with a seat capacity of 279 and a narrow body A320-200 with 150 seat capacity -- from the European manufacturer Airbus soon.
Currently, around two dozen international airlines are flying to Kathmandu and the ailing national carrier has been limited to its few destination due to lack of aircraft and over-politicisation of the management. It is facing troubles on the international and domestic fronts too as its domestic fleet has six Twin Otter Aircraft with 19-seat capacity but only four of these are operational.
Complaint filed to halt Asian Life's IPO
A complaint has been registered against the primary issue of Asian Life Insurance here at the Securities Board of Nepal (Sebon).
Bishwambher Ghimire has filed a complaint to stop the issue as the company has asked to deposit Rs 100 -- 100 per cent of the face value of per unit share, which according to the Company Act should be 50 per cent as the Asian Life Insurance has not completed three years of operation.
Asian Life Insurance Company floated its 10,80,000-units -- worth Rs 108 million -- of primary shares at a face value of Rs 100 per unit yesterday. "The company was established only two years ago and according to the Company Act, it cannot ask for the cent per cent call money of the face value," Ghimire said adding that the company cheated investors by asking them to deposit Rs 100 per unit of shares instead of Rs 50 per unit.
"The company's issue is against the Company Act and Sebon Regulation too," he argued.
Sebon -- the regulatory authority of the capital market -- has committed a mistake and it should correct its mistake by immediately halting the issue, Ghimire said.
According to the Sebon Regulation also, the call money of such a company should be 50 per cent of the face value.
But Sebon director Niraj Giri said that the company has -- according to the condition of Insurance Board (IB) -- has asked for the 100 per cent call money. "The promoters have also paid the 100 per cent of their shares," he added.
After this public issue worth Rs 108 million the paid-up capital of the company will be Rs 360 million, according to Asian Life Insurance that has Rs 252 million paid-up capital at present.
Of the total issue, 43,200-units are meant for the staff of the company. Contrary to other public issues, the company has allowed people to apply for minimum 10-units also and one can apply for a maximum of upto 20,000-unit.
Bishwambher Ghimire has filed a complaint to stop the issue as the company has asked to deposit Rs 100 -- 100 per cent of the face value of per unit share, which according to the Company Act should be 50 per cent as the Asian Life Insurance has not completed three years of operation.
Asian Life Insurance Company floated its 10,80,000-units -- worth Rs 108 million -- of primary shares at a face value of Rs 100 per unit yesterday. "The company was established only two years ago and according to the Company Act, it cannot ask for the cent per cent call money of the face value," Ghimire said adding that the company cheated investors by asking them to deposit Rs 100 per unit of shares instead of Rs 50 per unit.
"The company's issue is against the Company Act and Sebon Regulation too," he argued.
Sebon -- the regulatory authority of the capital market -- has committed a mistake and it should correct its mistake by immediately halting the issue, Ghimire said.
According to the Sebon Regulation also, the call money of such a company should be 50 per cent of the face value.
But Sebon director Niraj Giri said that the company has -- according to the condition of Insurance Board (IB) -- has asked for the 100 per cent call money. "The promoters have also paid the 100 per cent of their shares," he added.
After this public issue worth Rs 108 million the paid-up capital of the company will be Rs 360 million, according to Asian Life Insurance that has Rs 252 million paid-up capital at present.
Of the total issue, 43,200-units are meant for the staff of the company. Contrary to other public issues, the company has allowed people to apply for minimum 10-units also and one can apply for a maximum of upto 20,000-unit.
Banks vie to distribute dividends to shareholders
It seems that the banks are competing to give dividends to their shareholders.
The Board of Directors (BoD) meeting of NIC Bank yesterday decided to recommend 15 per cent bonus shares and 0.79 per cent cash dividend from the profits of the fiscal year 2008-09. However, the decision is subject to approval of Nepal Rastra Bank and NIC's annual general meeting (AGM).
Similarly, the 128th BoD meeting of Siddhartha Bank Ltd (SBL) today also proposed 10 per cent cash dividend.
Bank of Kathmandu's (BoK) 359th board meeting today decided to propose 40 per cent bonus shares and 7.3684 per cent cash dividend to its shareholders from its profit of the last fiscal year. The bank made a net profit of Rs 461.73 million in the fiscal year 2008-09 -- a growth of 27.73 percent compared to the preceding year.
According to BoK, it has been able to increase its deposits by 14.21 per cent and loans and advances by 17.24 per cent respectively compared to a year ago. It has also reduced its Non Performing Loan (NPL) to 1.27 per cent from 1.86 per cent.
The 26th commercial bank -- Kist Bank -- has also proposed 3.5 per cent cash dividends to its share holders that is subject to the approval of the annual general meeting and the central bank's approval.
Nepal Investment Bank Ltd has distributed 20 per cent cash dividends whereas Nabil Bank is distributing 30 per cent cash dividend and 50 per cent bonus shares. Similarly, Standard Chartard Bank Nepal has announced 50 per cent cash dividend and 50 per cent bonus shares. These banks are considered blue chip shares in the domestic market as the secondary market trading is dominated by them.
The commercial banks sub-group today shed 7.6 points to 563.63 points to pull Nepse down -- the fourth consecutive day this week -- today by 5.4 points to close the market at 585.04 points. Standard Chartered Bank Nepal lost Rs 51 per unit share, Himalayan Bank lost Rs 50 per unit, Citizens' Bank International lost Rs 48 per unit, Everest Bank lost Rs 36 per unit and Nabil Bank lost Rs 31 per unit to drag Nepse down.
Out of the total 26 commercial banks in the country, 23 commercial banks are listed under the bank sub-group and play a key role in the secondary market. Out of Nepal bank Ltd has been delisted and Rastriya Banijya Bank is 100 per cent government holding, the third Agriculture Development Bank is planning to float 96,000,00-unit shares to public by the end of this Kartik.
The Board of Directors (BoD) meeting of NIC Bank yesterday decided to recommend 15 per cent bonus shares and 0.79 per cent cash dividend from the profits of the fiscal year 2008-09. However, the decision is subject to approval of Nepal Rastra Bank and NIC's annual general meeting (AGM).
Similarly, the 128th BoD meeting of Siddhartha Bank Ltd (SBL) today also proposed 10 per cent cash dividend.
Bank of Kathmandu's (BoK) 359th board meeting today decided to propose 40 per cent bonus shares and 7.3684 per cent cash dividend to its shareholders from its profit of the last fiscal year. The bank made a net profit of Rs 461.73 million in the fiscal year 2008-09 -- a growth of 27.73 percent compared to the preceding year.
According to BoK, it has been able to increase its deposits by 14.21 per cent and loans and advances by 17.24 per cent respectively compared to a year ago. It has also reduced its Non Performing Loan (NPL) to 1.27 per cent from 1.86 per cent.
The 26th commercial bank -- Kist Bank -- has also proposed 3.5 per cent cash dividends to its share holders that is subject to the approval of the annual general meeting and the central bank's approval.
Nepal Investment Bank Ltd has distributed 20 per cent cash dividends whereas Nabil Bank is distributing 30 per cent cash dividend and 50 per cent bonus shares. Similarly, Standard Chartard Bank Nepal has announced 50 per cent cash dividend and 50 per cent bonus shares. These banks are considered blue chip shares in the domestic market as the secondary market trading is dominated by them.
The commercial banks sub-group today shed 7.6 points to 563.63 points to pull Nepse down -- the fourth consecutive day this week -- today by 5.4 points to close the market at 585.04 points. Standard Chartered Bank Nepal lost Rs 51 per unit share, Himalayan Bank lost Rs 50 per unit, Citizens' Bank International lost Rs 48 per unit, Everest Bank lost Rs 36 per unit and Nabil Bank lost Rs 31 per unit to drag Nepse down.
Out of the total 26 commercial banks in the country, 23 commercial banks are listed under the bank sub-group and play a key role in the secondary market. Out of Nepal bank Ltd has been delisted and Rastriya Banijya Bank is 100 per cent government holding, the third Agriculture Development Bank is planning to float 96,000,00-unit shares to public by the end of this Kartik.
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