NEPSE remains steady as the market shows no significant changes this week.
The NEPSE index sauntered along, barely making any significant changes with a small 4.4 point gain (0.20%) during the week. No major upheavals occurred on any trading days as the index never swayed away too far in any directions. The week began with a small stumble and the index fell by 13.71 points on Monday. But it quickly regained its footing, soaring 8.15 and 10.37 points on Tuesday and Wednesday. The index closed at 2183.21 points for the week, with a slight dip of 0.41 points on Thursday. The weekly turnover amounted to Rs.13.04 billion. There hasn’t been much movement on the NEPSE lately, as it has stayed steady at the 2100-2200 range for the last three weeks.
Sector Wise Index outlook of the week.
| Sectors | Opening Index | Closing Index | Percentage change |
|---|---|---|---|
| Non life insurance | 9213.7 | 9488.4 | 2.98 |
| Life insurance | 10713.1 | 11025.11 | 2.91 |
| Hotel & tourism | 3300.05 | 3375.36 | 2.28 |
| Finance | 1813.94 | 1851.13 | 2.05 |
| Trading | 2312.3 | 2337.28 | 1.08 |
| Hydropower | 2706.07 | 2727.52 | 0.79 |
| Commercial Bank | 1401.64 | 1401.14 | -0.04 |
| Microfinance | 4828.58 | 4822.74 | -0.12 |
| Mutual Fund | 14.96 | 14.86 | -0.67 |
| Others | 1576.25 | 1562.85 | -0.85 |
| Manufacturing & Processing | 5292.49 | 5239.76 | -1.00 |
| Investment | 70.79 | 69.37 | -2.01 |
| Development Bank | 3930.15 | 3849.9 | -2.04 |
Dividends announcements made this week
| S.N. | Name of the Companies | Bonus Shares | Dividend Tax (withheld and paid by the Company on shareholder’s behalf) | Total Distribution |
|---|---|---|---|---|
| 1. | Swabhimaan Laghubitta Bittiya Sanstha Limited (SMFBS) | 20% | 1.0526% | 21.0526% |
| 2. | Sabaiko Laghubitta Bittiya Sanstha Limited (SABSL) | 18% | 0.95% | 18.95% |
| 3. | Kalika Laghubitta Bittiya Sanstha Limited (KMCDB) | 19% | 1% | 20% |
| 4. | National Microfinance Laghubitta Bittiya Sanstha Limited (NMFBS) | 38.5% | - | 38.5% |
Do you know ?
Section 47A of Income Tax Act of Nepal,2058 provides that for those shareholders of BFIs & Insurance companies existing at the date of mergers/acquisitions, there should be no capital gain tax on gain on disposal of shares of a merged entity for 2 years from the date of merger. Also, there shall be no dividend tax on distribution of profit for 2 years from the date of merger.
That’s why the National Microfinance Laghubitta Bittiya Sanstha Limited hasn’t set aside any amount for dividend tax purposes because it acquired Mahila Sahayatra Laghubitta Bittiya Sanstha Ltd. on 30th Ashar, 2078 .
But, the shareholders who purchased shares after the date of merger will have to pay the dividend tax themselves.
IPO Alert !!!
Maya Khola Hydropower Company Limited is issuing 19,92,000 units IPO Shares to the general public from 13th Magh to 17th Magh, 2079. It would be wise to apply for only 10 units worth Rs.1000. Investing in an IPO is a smart move especially in case of IPOs at face value. Don’t miss out the opportunity to invest in such an IPO - these investments will never go to waste.
You may also read the weekly updates here: https://nepalinvests.com/stories/stock-market-news-picks-of-the-week