Day: April 22, 2024

Global IME Bank Limited (GBIME) has made headlines by listing a significant number of bonus shares on the Nepal Stock Exchange (NEPSE). The move follows the bank’s 17th Annual General Meeting (AGM) held on 28th Mangsir, 2080, where shareholders approved a 9% dividend for the fiscal year 2079/80.

During the board’s 429th meeting on Kartik 19, it was decided to distribute the dividend based on the bank’s paid-up capital of Rs. 35.77 Arba. The proposed distribution includes 1% bonus shares and an 8% cash dividend (inclusive of tax).

Investors and stakeholders eagerly awaited the listing of the bonus shares on NEPSE, marking a significant development in GBIME’s financial landscape. The move is expected to further enhance shareholder value and investor confidence in the bank’s performance.

GBIME’s closing price yesterday at Rs. 174 underscores the positive sentiment surrounding the bank’s financial prospects and dividend distribution.

Multipurpose Finance Company Limited (MPFL) has announced an auction of 2,50,971 units of shares, with the existing promoter extending the opportunity exclusively to its shareholder base. The auction, initiated on 10th Baishakh, 2081, invites interested promoter shareholders to participate within a 35-day window from the date of publication of the notice.

United Ajod Insurance, a key stakeholder, aims to sell its promoter shares to existing shareholders of MPFL. The auction aims to facilitate the transition of shares among the company’s core stakeholders, ensuring continuity and stability in ownership.

In the event that no bids are received from existing founder shareholders within the stipulated timeframe, the shares will be made available for auction to the general public or institutions, providing broader opportunities for investment and ownership in MPFL.

As of the latest update, MPFL is trading at Rs. 372.30, while MPFLPO stands at Rs. 202.00.

For further details and participation in the auction, interested parties are encouraged to refer to the official auction notice provided by MPFL.

Karnali Development Bank Limited (KRBL) has announced its unaudited financial results for the third quarter of fiscal year 2080/81, showcasing a noteworthy upswing in net profit and Earnings Per Share (EPS).

In the third quarter of the ongoing fiscal year, KRBL recorded a remarkable net profit of Rs. 2.88 Crores, marking a substantial 66.18% surge compared to the corresponding period last fiscal year, where the net profit stood at Rs. 1.73 Crores. This impressive growth in profit can be attributed to a reduction in impairment charges, despite a decline in net interest income.

Despite experiencing an 18.46% reduction in interest income, KRBL witnessed a significant 66.18% rise in operating profit, primarily fueled by the decrease in impairment charges. However, the bank reported a negative distributable profit of Rs. 2.5 Crores during this period.

Furthermore, KRBL’s per-share earnings displayed an upward trend, with the annualized EPS reaching Rs. 7.64 for the review period. The bank’s price-earnings (P/E) ratio currently stands at 53.67 times, while the net worth per share is reported at Rs. 105.75.

Investors and stakeholders can delve into the detailed unaudited financial statement provided by KRBL for comprehensive insights into the bank’s financial performance.

The price of fine gold in Nepal has seen a notable decline, according to the latest report from the Federation of Nepal Gold and Silver Dealers’ Association (FENEGOSIDA). Pure gold, known as fine gold, is currently trading at Rs. 1,38,200 per tola, marking a decrease of Rs. 1,100 from its previous closing rate.

Similarly, Tejabi gold, another popular variant, is now valued at Rs. 1,37,550 per tola, reflecting a Rs. 1,100 decrease from its previous day’s closing price. This decline comes after the surge observed on April 19th, 2024, when fine gold reached an all-time high of Rs. 1,39,300 per tola.

Additionally, the price of silver has also experienced a downturn, with a decrease of Rs. 35 per tola. The current market rate for silver stands at Rs. 1,705 per tola, compared to yesterday’s closing rate of Rs. 1,740 per tola.

Both domestic and international markets have witnessed a decline in prices, with the global gold rate reported at $2,366.80 per ounce. Meanwhile, silver prices exhibit negative momentum internationally, reaching $27.88 per ounce.

Investors and traders are closely monitoring these fluctuations in the precious metals market for potential investment opportunities.

The Nepal Stock Exchange (NEPSE) Index marked a modest gain of 0.62%, adding 12.29 points to settle at 1,984.43 points by the closing bell today, bouncing back from the previous session’s loss of 19.56 points.

Commencing at 1,972.92, the trading day displayed fluctuations, hitting an intraday high of 1,984.46 before sliding to an intraday low of 1,953.29.

In a vibrant trading atmosphere, 310 different stocks were traded in 47,117 transactions. The total share volume amounted to 6,393,245, reflecting a total turnover of Rs. 2.25 Arba. Market capitalization wrapped up at Rs. 31.46 Kharba, with a float market capitalization of Rs. 10.63 Kharba.

Gurkhas Finance Ltd. (GUFL) took the spotlight, registering a turnover of Rs. 10.21 Crore and closing at a market price of Rs. 787.10.

Likewise, Dolti Power Company Limited (DOLTI) recorded the highest gain of 9.88%, trailed by NIC ASIA Laghubitta Bittiya Sanstha Limited (NICLBSL) with an 8.47% increase.

On the flip side, People’s Power Limited (PPL) witnessed a downturn, dropping 7.46% to conclude at Rs. 608.

Regarding sectors, two sector indices ended in the red, with the “Manufacturing And Processing Index” leading with a 1.90% gain. However, the “Mutual Fund Index” saw a dip of 0.43%.

Nepal’s trade dynamics in the initial nine months of fiscal year 2080/81 reveal alarming patterns, raising concerns about the nation’s economic outlook. The trade deficit, representing the variance between imports and exports, has expanded by approximately 2.75 percent during this period, indicating a growing disparity between import costs and export values, posing significant challenges to Nepal’s economic stability.

Imports

Imports in the first nine months of the fiscal year witnessed a noticeable decline of around 2.84 percent, totaling approximately Rs. 11.67 Kharba. In comparison, the corresponding period in the previous year saw imports amounting to goods worth Rs. 12.01 Kharba.

Key imported commodities included mineral fuels, iron/steel, electrical machinery, mechanical appliances, and vehicles. The surge in these imports reflects shifting consumer demands and evolving industrial needs within the country.

Exports

On the contrary, Nepal’s exports amounted to Rs. 1.13 Kharba during the nine-month period, primarily led by sectors like coffee, tea & spices, iron/steel, and man-made staple fibers, which constituted the bulk of export volumes.

However, exports have witnessed a decline of about 3.66 percent compared to the previous year’s exports valued at Rs. 1.18 Kharba. This decline poses a significant challenge to economic growth and stability, impacting vital indicators such as GDP, exchange rates, inflation, and interest rates.

Auction for the unclaimed portion of Arun Valley Hydropower Development Company Limited’s (AHPC) right shares commences today, on the 10th of Baisakh, 2081, and will run until the 24th of Baisakh, 2081.

A total of 19,92,134 units of ordinary right shares will be up for auction, representing the unclaimed segment of the rights offering. AHPC had issued a 1:1 ratio right share from the 17th of Falgun to the 7th of Chaitra, 2080.

Among the total right shares issued, only 1,66,87,492 (89.34%) units were allotted to eligible shareholders, leaving 10.66% unclaimed by eligible investors. Consequently, the same 19,92,134 units of unsold right shares are now available for the general public starting today.

Both individuals and institutions are eligible to participate in the auction.

Muktinath Capital Limited has been appointed as the issue manager for this right share offering. The minimum bid rate for the auction is set at Rs. 100, with a minimum bid quantity of 100 units. While bidders can bid for the entire issue, they must adhere to the regulatory board’s guidelines to ensure that the specified quantity of shares per entity is not exceeded.