31 Jan: NEPSE Couldn't hold its yesterday's rise due to Profit booking today

On Monday, the NEPSE index fell by 14.48 points (fell by 0.50%) to 2871.05. Out of 225 companies traded, 32 companies have risen, 156 companies have declined and 2 companies have remained stable.

 

Out of the 13 sub-groups traded, share prices of 3 sub-groups have risen while share prices of 10 sub-groups have declined.

The market capitalization has reached Rs. 4 trillion 58 billion.

 Main transactions

 Technical analysis

 

Technical analysis indicators

1. Bollinger Bands

The analysis shows that the difference between the upper and lower bands of the Bollinger Bands has decreased (today's difference: 346.22) which indicates that the volatility in the market has decreased today. The market today closed above the middle band (2828.17) and seems to be holding between the upper and middle band.

2. Moving Average Convergence Divergence

Moving Average Convergence Divergence analysis shows that the MACD line and the signal line are above the zero line. The histogram is at -10.21. The MACD line has come down from (60.81) points to (59.42) points. The signal line has decreased. The decline in the MACD line indicates a decrease in buyer pressure in the market.

3. Directional movement

The Directional Movement Indicator has seen a decrease in -14 DMI line as well as ADX line. The +14 DMI line has seen an increase which indicates an increase in buying momentum in the market.

4. Candlestick

Today, Nepse has made a short body candlestick which indicates consolidation.

5. Cumulative AD line

The cumulative AD line has come down from yesterday -1638 to -1762. The total volume of Nepse stood at 8,417,058 which is 81 percent of the 21 day moving average volume (10421469.90).

Nepse has closed above the middle band today. The market seems to support the middle band area. The MACD line is above the zero line and the signal line is also above the zero line while the histogram is at 10.21. The MACD line can be seen crushing the signal line and going down which can predict a correction in the market in a few days. If the MACD line crushes the signal line upwards it shows a positive signal.

+14 DMI line has increased while ADX line seems to decrease slightly. ‍ -14 DMI has decreased. If the +14 DMI line and the ADX line go upwards, it can be seen that the moment of Nepse is positive.

The RSI today fell from 60.76 to 59.20, indicating a slight decline in RSI momentum. Nepse's next day's support seems to be in the area of ​​2828 (middle band) while the barrier seems to be in the area of ​​3000 (upper band).

Source: laltin.com

Increase interest rate on deposits to solve liquidity shortage: Economists

 

Drying of liquidity is synchronized with the increasing balance of payment (BoP) deficit in the current fiscal year (FY).

A recent report of the Nepal Rastra Bank (NRB) showed a steep fall of the excess liquidity from Rs. 122.9 billion in mid-July last FY to Rs. 17 billion on January 25 in the current FY.

Likewise, the surplus BoP of Rs. 1.23 billion of FY2020/21 turned down to a huge deficit of Rs. 195.01 billion during the first five months of the current FY.

The external sector witnessed the deficit in BoP coinciding with the continuous climb of the imports. The import is getting financed from the bank and financial institutions (BFIs). The NRB report revealed that the amount of the outstanding credit of BFIs leaped by a huge amount in the current FY in comparison to the previous FY. In the current FY, the outstanding credit for import finance rose to Rs. 12.2 billion is far too large in comparison to just over Rs. 405 million recorded in the same period of the previous FY.

In effect, the import has been draining the liquidity out of the banking channel.

The outcome of the import finance has been nudging the BoP in a deficit position in the context of weakening support of remittance, foreign aid, and a low foreign direct investment base. Besides, the foreign exchange reserve has been depleted by 12.5 per cent in the first five months of the current FY.

Sharing his view, the former governor of NRB, Deependra Bahadur Kshetry, said that a rise in imports is one of the causes of the current shortage of liquidity. He said that deposits are not being mobilized at par with the rise in the credit flow. In response to sluggish deposit mobilization, Kshetry thinks that a sharp rise in inflation has discouraged the depositors because of a very low-interest rate in the savings. The saving rate is far lower to compensate for the 11 per cent rate of inflation.

Former governor Chiranjivi Nepal said that the budget vacuum at the beginning of the current FY is one of the reasons for the current stress in liquidity. He said, in addition to the situation of a replacement budget, aggressive lending in recent months emanates the problems as the deposit has not been mobilized to match the lending. In response to the slow deposit mobilization, he said that fixing of fluctuation rate of interest on deposits could be a major fault in the NRB policy, which has demoralized depositors to invest in banks and financial institutions.

Former Minister of Finance Dr. Ram Sharan Mahat said that the way the incumbent government has taken internal debt has disrupted the liquidity mobilization in the private sector. He also noted that the preceding government had also taken a high amount of internal debt. In his view, the government’s internal debt should not exceed 2 per cent of gross domestic product (GDP), instead, he said it has been exceeding 5 to 6 per cent. He also added that the COVID-19 pandemic also played a key role in exacerbating of the current situation of the economy by disrupting economic activities.    

source: trn online

30 January: Excited buyers push NEPSE up by 105 points

 

The Nepal Stock Exchange (NEPSE) index has increased by 105.55 points to close at 2,885.53 points on the first trading day of the week. Similarly, the sensitive index has also increased by 19.81 points to stand at 538.53 points.

A consensus among main political parties to hold the Local Level Elections is credited for the rise in the NEPSE index. Over 12 million shares of the total 231 companies were traded at over Rs 6.32 billion. All 13 subgroups of the NEPSE have risen.

Banking gained 64.99 points, trading 146.33, hotel and tourism 141.48, development bank 318.22, hydropower 182.9, finance 152, non-life insurance 431.61, production 197.75 and others 83.22 points. Similarly, microfinance increased by 173.46 points, life insurance 548.06, mutual fund 0.28, and investment 5.69.

Today's market capitalisation of the NEPSE was over Rs 4077 billion.

Liquidity Shortage Lasts Longer Due To Domestic, External Sector Pressure

 

The liquidity management issue has lasted longer in the bank and financial institutions (BFIs) alongside the daunting macroeconomic indicators.

The Nepal Rastra Bank (NRB) data shows that the trend of the excess liquidity indicator fluctuated around Rs. 122.9 billion to Rs 120 billion at the beginning of the current FY. However, it began depleting from there hitting the rock bottom to Rs. 17 billion on January 25.

The current situation in managing liquidity in the BFIs could be pointed out to the rising external sector pressure together with the upsurge in the domestic economy.

The foreign trade statistics (FTS) of the Customs Department recorded a high rise of imports in the first half of the current fiscal year (FY). The imports sprung up by 51.13 per cent in the first six months in comparison to the same period of the previous FY. Import is one of the main causes for leakage of local currency from the economy.

Besides swelling imports, the diminishing remittance has led the BFIs liquidity position to a vulnerable situation. The Current Macroeconomic and Financial situation data of the NRB revealed that the Nepali migrant workers' remittance contracted by 6.9 per cent in the first five months in comparison to the same period of the previous FY.

Alongside external pressure, the domestic economy is also flexing out after being badly hit during the second wave of the COVID 19 pandemic. Subsequently, the demand for loanable funds took off in recent months. The Current Macroeconomic and Financial situation data reveals that the private sector credit boosted by 11.1 per cent in the first five months in comparison to the same period of the previous FY.

Further, the government’s capital expenditure also could not be stimulated as per the target. The government has set the target to spend at a rate of 10 per cent per month over this FY. But in contrast, 13.71 per cent of the target is spent in the first half of the current FY.

These all factors contributed to the disruption of the flow of liquidity in the bank and financial system.

The Research Department’s executive director of NRB, Prakash Kumar Shrestha, agreed that swelling imports besides leap in the credit flow in the private sector has exerted pressure on liquidity management.  He stated that excess liquidity is pulled down to Rs. 17 billion as of January 25.

Source: trn online

Nepal Bank brings deposit accounts for NRNs

Nepal Bank has launched NRN deposit accounts with attractive facilities targeting non-resident Nepalis.

Non-resident Nepalis living abroad will now be able to open online foreign currency savings and term accounts with Nepal Bank Limited. The highest interest will be paid when opening a savings and term account with Nepal Bank in US Dollars, Pounds Sterling and Australian Dollars. When opening a savings and help account in US dollars, the annual interest rate will be 4.5 percent and 5 percent respectively, while attractive interest rates will be offered on other foreign currency deposits.

The minimum balance in both the savings and term accounts should be USD 5,000 or other foreign currency equivalent. NRN account can be opened by non-resident Nepalis individually and jointly and also in the name of organization abroad promoted by non-resident Nepalis. In order to open this account, a copy of the updated identity card of Non-Resident Nepali issued by the concerned body of the Government of Nepal should be included and only deposit and refund can be made through the banking system.

Janaki Finance profit reached 3.55 crore in quarter 2

Janaki Finance Limited (JFL) has earned Rs 3.55 crore till the second quarter for the fiscal year 2078/79 whereas last corresponding year the company reported loss.

Janaki finance has paid-up capital of Rs 60.04 crore. Its reserve and surplus have increased to Rs 34.05 crore in quarter 2. 

JFL has a deposit collection of Rs 3.08 arba whereas it has floated loans and advances of Rs 2.99 arba. It has an NPL of 5.31%. The net interest income was reported at Rs. 9.51 Crore which was Rs. 5.75 Crore in the corresponding quarter of the previous year.

The finance company annualized earning per share (EPS) stands at Rs 11.85, net worth per share is at Rs 156.71 and the P/E ratio is at 59.98 times.

National Life Insurance (NLICL) Proposes 20% Dividend

     

National Life Insurance Company Limited (NLICL) has proposed a 20% dividend for the fiscal year 2076/77.

The 461st meeting of the board of directors held on Magh 12 decided to distribute the dividend on the paid-up capital of Rs. 3,39,08,89,203.

19% bonus shares and 1% cash dividend have been proposed. Thus, the bonus shares are worth Rs. 64,42,68,949 and the cash dividend is worth Rs. 3,39,08,892. The cash dividend has been proposed for the tax amount on bonus shares.

The dividend will be distributed only after approval by Beema Samiti and endorsement by the company's upcoming AGM. NLICL closed at Rs. 1,120 yesterday.

Dhaulagiri Laghubitta Appoints Issue Manager for IPO of 3 Lakh Shares, How is the Company Doing? Let's find out!

Dhaulagiri Laghubitta Bittiya Sanstha Limited has appointed Sunrise Capital as issue manager to issue an IPO for 3,00,000 shares.

The microfinance company's CEO Min Bdr. Bohara signed an agreement with Sunrise Capital's CEO Bijaya Lal Shrestha on Magh 12 at the issue manager's office in Kamalpokhari, Kathmandu.

Dhaulagiri Laghubitta is a microfinance institution licensed as a national level "D "class financial institution from Nepal Rastra Bank, the central bank of Nepal. Established on 3rd July 2018 as a Public Limited Company under Company Act 2063 of Nepal and licensed from the Central Bank of Nepal on 19th Feb 2019, its head office is at Balgung Municipality 2 Shreenagar Tole Baglung.

The paid-up capital of the company is Rs. 7 crores. After the IPO issuance, this will scale up to Rs. 10 crores.

Dhaulagiri Laghubitta has Rs. 10.38 crores worth of reserves. As of Ashad's end, FY 2077/78, the company reported a distributable profit of Rs. 2.60 crores. By Poush, this figure had gone up to Rs. 4.9 crores. At the end of the fiscal year 2077/78, the EPS of the company was slightly over Rs. 50.12. By Poush, this figure has also gone up to Rs. 61.45.

As of Poush 2078, the company serves 34,438 members through 191 employees employed at 46 branches in 20 districts. As of the same date, the company reported Rs. 1.44 Arba worth of loan investment, Rs. 62.14 crores worth of deposit collection, and Rs. 61.80 crores worth of interbank borrowing.

The company aims to provide banking services to the rural population and contribute to the overall poverty reduction program through the increment of production and productivity of rural Nepal.

Lending Comes to An Almost Halt in Magh, Deposit Down Rs. 17 Billion

The elaborate report on the trend of deposit and lending in the nation's commercial banks has been unveiled. This is the data reported as of Magh 07, 2078, i.e. the last working day of the first working week of Magh. The average CD ratio as of this date is 90.43%.

The total deposit went down by Rs. 13 billion in the second week of Magh, and the figure is at Rs. 4,311 billion. In the last week of Poush, this figure had gone up by Rs. 17 billion from the week before that. Rs. 4,210 billion worth of deposit is in local currency while the rest Rs. 101 billion is in foreign currency.

Meanwhile, the total lending has gone up by Rs. 1 billion, and the total figure is at Rs. 4,144 billion. Rs. 4,055 billion worth of lending has been forwarded in local currency while Rs. 99 billion is in foreign currency.

IPO Proposals of Six Companies Finally Approved by SEBON

The Securities Board of Nepal (SEBON) has approved the IPO proposal of six companies.

The approval process had been halted ever since ex-chairman Bhisma Raj Dhungana was declared guilty (and sacked) of illicit obtaining of shares and acting under influence of power centers.

The public issues will raise a total of Rs. 1,266,229,000 combined. 

Note that the IPO opening date hasn't been declared for any of the companies. The date will be unveiled by the respective companies (and their issue manager) via the offer letter.

Balephi Hydropower Ltd.

(For Local & Public)

Sector: Hydropower

Public Issue (Units): 3,655,940

Public Percentage: 20%

Issue manager: Global IME Capital Limited

Green Ventures Ltd.

(For Local & Public)

Sector: Hydropower

Public Issue (Units): 6,250,000

Public Percentage: 20%

Issue manager: Laxmi Capital Market Limited

NESDO Sambridha Laghubitta Bittiya Sanstha Limited

Sector: Microfinance

Public Issue (Units): 828,750

Public Percentage: 32.50% 

Issue manager: Global IME Capital Limited

Jalpa Samudayik Laghubitta Bittiya Sanstha Ltd.

Sector: Microfinance

Public Issue (Units): 522,000

Public Percentage: 32.625%

Issue manager: Prabhu Capital Ltd.

Rastra Utthan Laghubitta Bittiya Sanstha Ltd.

Sector: Microfinance

Public Issue (Units): 850,000

Public Percentage: 32.69%

Issue manager: NIBL Ace Capital Ltd.

Emerging Nepal Limited Investment

Sector: Investment

Public Issue (Units): 555,600

Public Percentage: 10%

Issue manager: NIC Asia Capital Ltd.

Mutual Funds of Siddhartha Capital Come Back Profitable in Poush

 

Siddhartha Equity Fund (SEF), a closed-end 10 years mutual fund, managed by Siddhartha Capital Limited has reported a rise in its net asset value (NAV) for the month of Mangsir.

According to the financial report published today, the mutual fund scheme’s NAV stands at Rs. 14.50 as of Poush end, 2078 which was Rs. 12.34 on the previous month.

The scheme which began with a total fund of Rs.1.50 Arba has invested Rs. 1.79 Arba in the listed shares and Rs. 15.14 crores in public issues, right shares, and bonus shares. The scheme has invested Rs. 6.29 crore in bond and debenture and Rs. 3 crores in FDs.

This scheme has Rs. 12.02 crores in the bank balance. SEF has posted a net profit of Rs. 2.3 crores till the month of Poush. Last month, the loss was Rs. 21.11 crores.

Announcement

Siddhartha Investment Growth Scheme 2 (SIGS2), a closed-end 10 years mutual fund, managed by Siddhartha Capital Limited has also reported a rise in its net asset value (NAV) for the month of Poush.

According to the financial report published today, the mutual fund scheme’s NAV stood at Rs. 14.89 as of Poush end, 2078. It was at Rs. 12.60 in the previous month.

The scheme which began with a total fund of Rs. 1.20 Arba has invested Rs. 1.48 Arba in the listed shares and Rs. 12.16 crores in public issues, right shares, and bonus shares. The scheme has invested Rs. 1.89 crores in bond and debenture and Rs. 8 crores in FDs. This scheme has Rs. 6.92 crores in the bank balance.

Net Profit of Commercial Banks Jump By 10%; Global at Top

All 27 commercial banks listed in Nepal Stock Exchange (NEPSE ) have published their second-quarter financial report.

 

As per the reports, the banks have increased their net profit by 10.10 percent. In the review period, the banks earned Rs 34. 21 billion in net profit compared to Rs 31.07 billion of the corresponding period of the last FY.

 Banks at Top and Bottom

During the period, Global IME Bank earned the highest net profit of Rs 2.66 billion. The bank raised the net profit by 15.04 percent compared to the review period of the last FY.

In the meantime, Civil Bank earned the lowest net profit of Rs 504 million during the period.

Net Profit of 3 Banks Exceeds 2Bn

In the review period, three banks have logged net profit above Rs two billion. Global IME, NIC Asia and Nabil Bank registered net profit of Rs 2.66 billion, 2.40 billion and Rs 2.18 billion respectively.

Billionaire Banks

A total of 16 banks have made their place in the billionaire club. In the club, Global IME is the top place holder and Machhapuchchhre Bank is at the bottom place.

Civil Bank Records Maximum Growth

In terms of growth rate, Civil Bank logged the biggest jump of 148.42 percent during the period. After Civil, Siddhartha Bank increased its net profit by 71.68 percent.

And Those Who’s Net Profit Declined

Few commercial banks like Prime Commercial Bank, Everest Bank, Nepal Bangladesh Bank, Prabhu Bank, Sunrise Bank and Kumari Bank registered declination in their net profit.

Dividend of These 3 Companies Distributed in Bank/ Demat Accounts

Jyoti Bikash Bank Limited has distributed a 4.5% cash dividend directly to the bank accounts of its shareholders.

The 14th AGM of the company held on 23rd Poush, 2078, endorsed a 15.5% dividend for the fiscal year 2077/78. The 406th meeting of the board of directors held on Mangsir 09 decided to distribute the dividend on the paid-up capital of Rs. 3,84,48,22,781. 11% bonus shares worth Rs. 42.29 crores and 4.5% cash dividend (for tax purposes) worth slightly over Rs. 17.3 crores were proposed.

The same cash dividend is now distributed to bank accounts of eligible shareholders. Poush 09 was the book closure date. Thus, shareholders maintained before that day are entitled to the dividend payout.

Similarly, Manjushree Finance Limited has also distributed a 6% cash dividend directly to the bank accounts of its shareholders.

The 14th AGM of the company held on 29th Poush, 2078 endorsed a 46% dividend for the fiscal year 2077/78. The 213th meeting of the board of directors held on Mangsir 24 decided to distribute the dividend on the paid-up capital of Rs. 93,53,94,892. From the paid-up capital, 40% bonus shares worth slightly over Rs 38.61 crores and 6% cash dividend (including tax) worth Rs 5.79 crore were proposed.

The same cash dividend is now distributed to bank accounts of eligible shareholders. Poush 15 was the book closure date. Thus, shareholders maintained before that day are entitled to the dividend payout.

Likewise, Gurans Laghubitta Bittiya Sanstha Limited has distributed a 16.90% bonus share directly to Demat accounts of its shareholders.

The 6th AGM of the company held under the leadership of its chairman Mr. Udaya Narayan Baral on Kartik 22, 2078 endorsed the board’s proposal to provide 16.90% bonus shares and 0.88% cash dividend to its shareholders for the fiscal year 2077/78. The same bonus shares are now deposited to Demat accounts.

Kartik 08 was the book closure date. Thus, shareholders maintained before that day are entitled to the dividend payout.

For those who have not authenticated their bank account in their Demat accounts and for those who have not dematerialized their shares, the respective dividend will be distributed only after they complete the necessary procedure. Furthermore, investors who have taken margin loans against the shares of the companies are required to present a No Objection Letter or a Release Letter, depending on when they took the loan.

Himalayan Bank Limited Reports Satisfactory Growth In Profitability Indicators In Quarter 2

 

Himalayan Bank Limited (HBL) has published its second-quarter report for the FY 2078/79 today with a rise in net profit by 13.8%. The bank’s profit has increased from Rs. 65.32 crores in the second quarter of the fiscal year 2077/78 to Rs 74.34 crores in the second quarter of the fiscal year 2078/79.

In the same quarter, the bank has Rs 24.51 crore as distributable profit after PL Appropriation and Regulatory Adjustments.

The bank’s deposit from customers has increased by 17.37% (compared to the immediate previous year ending) to Rs 1.65 kharba and loans and advances to customers increased by 19.54% (compared to the immediate previous year ending) to Rs 1.50 Kharba till the second quarter. The net interest income (core business income) of the bank has increased by 8.91% to Rs 1.91 arba from Rs 1.75 arba of the corresponding quarter.

The bank’s paid-up capital stands at Rs 12.96 arba with Rs 7.39 arba as its reserve and surplus. The Non-performing loan stands at 0.72%.

In the second quarter, the annualized EPS of the bank stands at Rs 11.47. The net worth per share stands at Rs 157.05.

Rights Offering of Narayani Development Bank (NABBC) Closing Today

Narayani Development Bank Limited (NABBC) is closing its ongoing 1:1 rights offering from today, i.e. 12th Magh. The issue was opened on 7th Poush, 2078.

A total of 13,12,338 unit shares will be issued at a par value of Rs. 100 per share.

The 19th AGM of the company held on Magh 16, 2077 had endorsed the proposal to issue 1: 2 right shares. The right shares is being issued on the paid-up capital of Rs. 13,12,33,800. However, based on the letter forwarded by the central bank on Jestha 20, 2078, the development bank was given approval to issue the right shares in a 1: 1 ratio only. This will only double the paid-up capital, compared to the company's expectation to tripe it.