27th July, Friday. Vol-2.

Issue-170 MORNING QUOTE:

Delays in granting of justice very often reduce the speed with which investment could be undertaken, discouraging investors. . - Lucas Papademos

Top Headlines: Scandal in NB Insurance Company Limited operations. Self use of money collected from customers, etc. (Source: Nagarik Daily) UCPN (Maoist) to probe own top leaders properties. (Source: Republica) China concerned over foreign meddling in Nepal: Baidya. (Source: Republica) Kathmandu roads a nuisance in rainy season. The major roads of Kathmandu city were last repaired in 2007. (Source: Republica) Petroleum products, gold top import list. Country buys Rs 84.45 billion worth fuel, Rs 22.82 billion worth precious yellow metal. (Source: The Himalayan Times) Nepal Telecom starts Point of Presence (PoP) in Hong Kong. (Source: The Himalayan Times) Citizen Investment Trust role as market maker delayed. (Source: The Himalayan Times) Partial budget hits private sector hard. (Source: Republica) Macroeconomic model consistent with Millennium Development Goals (MDGs) unveiled. (Source: Republica) Canadian investors interested in energy, water processing. (Source: Republica) Exporters welcome relaxation of refinancing provisions. (Source: Republica) Social security expenses top pension costs. Karnali scheme a failure. (Source: The Kathmandu Post) Distribution of LPG cards held up again. Nepal Gas, Everest Gas and Salt Trading Corporation Gas have declined to provide information demanded by NOC. (Source: The Kathmandu Post) Facilities for former VIPs: As pressure mounts, Nepal, Poudel hand back vehicles to government. (Source: The Kathmandu Post) Hopes fading; govt set to seek new election date. (Source: The Kathmandu Post) Pokhara International Airport Plan on tarmac, Civil Aviation Authority of Nepal wary of financial turbulence. Pokharelis warn of shutting down domestic air terminal. (Source: The Himalayan Times) Court is hindrance against selling apartments to foreign nationals and non residents Nepalese. (Source: Karobar Daily) National Hydropower Company limited share transaction has been barred by Nepse on Share Registrars matter on Thursday. (Source: Karobar Daily)

MARKET INFORMATION
As of 11th Shrawan, 2069 Index NEPSE Sensitive Float Sen. Float NEPSE Sub-Indices Banking Dev. Bank Hydropower Finance Insurance Others Current Points Change %Change

401.54 103.76 31.23 28.27

-3.48 -0.97 -0.246 -0.269

Current Points Change

-0.85 % -0.924 % -0.78 % -0.94 %

%Change

371.58 -4.94 252.8 705.61 509.4 610.95 -0.87 4.04 0.36 -4.7

-1.312 % -0.343 % 0.576 % -0.336 % 0.071 % -0.7635 %

262.49 -0.88

Market Summary
Total Turnover Rs: Total Traded Shares Total Transactions Total Scrips Traded

55,155,815 236,767 1265 85

Total Market Capitalization Rs: 379,426.55 Millions

Floated Market Capitalization Rs:

72,823.09 Millions

www.sharesansar.com.np

International Business: Facebook hopes investors like first quarter earnings. (Source: The Kathmandu Post) India reforms seen on hold; politics to blame. (Source: The Kathmandu Post) Indian carmaker Maruti faces months of supply strain. (Source: The Kathmandu Post) Toyota regains top carmaker position. (Source: The Kathmandu Post) General News: NRB has given consent to Muktinath Bikas Bank Limited to expand its work from existing 3 district network to 10 districts from now on. (Source: Karobar Daily) Big investors names are being blacklisted on non- payment of interest or renew their loans in different BFIs. (Source: Karobar Daily) Sahara Nepal Limited (SAKOS) and Development Planning Service Center (DIPROX) Rs 3 billion is in danger due to continuous labor strike in both the financial companies from quite some time. (Source: Arthik Abhiyan) BFIs deposits have increased by Rs 150 billion during 11 months of fiscal year 2068/69. (Source: Arthik Abhiyan) Govt responsibility to different concerned organization has surpassed Rs 40 billion mark in five years. It increases @ Rs 4 billion every year on service and facility provided to them. (Source: Karobar Daily) Financial Highlights: Butwal based Shine Development Bank Limited has been able to earn Rs 70.30 operating profit during fiscal year 2068/69. (Source: The Himalayan Times)

Current and Upcoming Right Share:

Company
Nepal Express Finance Limited

Source: www.negosida.com.np As of 11th Shrawan, 2069

Open Date
17th Shrawan, 2069

Close Date
19th Bhadra, 2069

Ratio
1:0.11

Issue Manager
NCM Merchant Banking Limited

INVESTMENT DECISION:
The primary purpose of measuring the cost of capital is to use it as a financial standard for evaluating long-term investment projects. The cash flows expected during the life of the project are discounted at certain rate, which is the cost of capital. Cost of capital is required to compute net present value (NPV). Net present value (NPV) is present value of future cash flow discounted at firm's cost of capital less initial investment. If NPV is positive, the project is accepted. Similarly, under internal rate of return (IRR) approach, IRR is compared with cost of capital to take decisions.

Unaudited financial highlights as of 4th quarter of last fiscal year 2068/69:

Company Paid Up (Rs. In millions) Reserve (Rs. In millions) Net Profit/Loss (Rs. In millions) Operating Profit/Loss (Rs. In millions) NPL to total Loan (%) EPS (Rs.) PE Ratio (times) Net Worth Per Share Per Share total Asset Value (Rs.) Liquidity Ratio (%)
Source

City Development Bank 220 93.57 51.9 70.01 0.04 23.56 5.73 142.5 32.48
Karobar

Tinau Development Bank 100 25.38 10.15 15.95 0.39 10.15 10.14 125.39 1450.84 25.65
Arthik Abhiyan

Soaltee Hotel Limited 179.09 475.88 150.6 300.58 _ 8.41 27.35 36.57 _ _
Arthik Abhiyan

www.sharesansar.com.np