Contrary to the popular belief that decrease in capital gain tax will push the Nepse high up, the Nepse this week posted a marginal growth of 1.97 points to 737.84 points from last week's closure of 735.87 points. Though the capital gain tax is one of the reasons that hit the growth of capital market, it is not the major one.
The transaction amount has also increased by a minimal 3.52 per cent to Rs 407.91 million against last week's Rs 394 million. Last week -- after the budget -- the Nepse gained 32.99 points against 35.45 points a week earlier.
However, the shareholders of commercial banks and finance companies sub-groups gained as these two sub-groups gained 18.19 points to 782.67 points and 7.17 points to 699.36 points respectively. The remaining -- development banks, insurance companies, trading, hydropower companies, others and hotels -- sub-groups lost except the manufacturing sub-group that did not witness any trading this week.
The hydropower companies and others sub-groups plunged by 37.36 points to 980.07 points from last week's closing of 1028.43 points and 37.58 points to 687.31 points from 724.89 points putting a break to Nepse's last two weeks impressive growth.
The sensitive index -- the barometer of Group-A companies -- gained 2.59 points to 197.77 points from last week's closing of 195.18 points. Last week, the 78-scrip sensitive index had flared by 7.09 points to close at 195.18 points.
Similarly, the float index -- calculated on the basis of real transactions -- also gained 1.07 points to 71.15 points from last week's closing of 70.08 points.
This week Nepal Bangladesh Bank (with Rs 44.04 million) topped the chart in terms trading amount followed by Bank of Kathmandu (with Rs 35.27 million), Nabil Bank (with Rs 28.71 million), Standard Chartered Bank Nepal (with Rs 28.01 million) and Nepal Investment Bank (with Rs 26.63 million).
In terms of number of share units traded National Hydropower Company topped the chart with 1,68,000-unit shares changing hands and in terms of number of transactions Citizens Bank International topped the chart with 561 transactions.
Monetary Policy offers nothing
KATHMANDU: Monetary Policy has neither good nor bad news for the investors. The closely watched policy document announced yesterday by Nepal Rastra Bank (NRB) could have a huge impact in the Nepse as the domestic capital market has over 85 per cent contribution of banks and financial institutions. But the Monetary Policy didnot increase the paid-up capital -- as expected by some investors -- of the banks and financial institutions. "The limit of minimum level of paid up capital has been kept unchanged," the Monetary Policy said adding that nowonwards, the base for increasing capital of licenced banks and financial institutions by the NRB will be their capital fund. The capital fund includes core capital and supplementary capital. The minimum level of paid up capital -- that is kept unchanged according to the policy -- is Rs 2 billion for commercial banks, Rs 640 million for development banks and Rs 200 million for finance companies. Only a couple ofbanks like Nepal Investment Bank and Kist Bank has already increased their minimum level of paid up capital but remaining commercial banks yet have to increase their paid up capital by the end of 2010.
Warren Buffett to star in cartoon
NEW YORK: The so-called Sage of Omaha, Warren Buffett, is a billionaire, a philanthropist, a stockpicker and an author. In a new turn, the wily 78-year-old investor will shortly add cartoon star to that list. An animated version of Buffett will teach children about finance in a series called The Secret Millionaires Club, to be created by internet empire AOL and media firm A Squared Media. Episodes lasting three to five minutes will appear on AOL before being distributed across the web via social networking sites. The world's second richest man is in august company. Others featuring in cartoons as part of the same project include the supermodel Gisele Bundchen, who plays a superhero protecting the environment, and Martha Stewart, who will educate viewers in cooking, craft, gardening and creating 'unforgettable' events. Nebraska-based Buffett has built a vast army of US followers who admire his flair for picking successful investments and acquisitions. Hisfortune is estimated at $37 billion, second only to Bill Gates's $40 billion, in Forbes magazine's annual ranking of the world's richest people. Buffett said the credit crunch was a reminder of the need to teach children about money, "What better time to help educate our kids about financial responsibility." It has been a tough year for Buffett. His Berkshire Hathaway investment company suffered a rare drop in its asset value during 2008, partly due to what Buffett admitted were 'dumb' choices. It recently lost its triple-A credit rating and its shares have slipped by 18 per cent over the last 12 months. -- The Guardian
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