Business advisory - August 18, 2014

Rajesh Sharma

Business advisory - August 18, 2014

Buying is the key word for initial days of this week too. Most probably, confusion, bewilderment and environment that promotes indecision would continue. The signs are there, the market will stabilize or move up. Grand Bank's performance may affect banking stocks. However, mid cap shares like SBL, NBB, LBL, Mega, KBL could attract the attention. As usual, Nabil, EBL, SCB may be volatile but profitable though marginally. Chilime may have some loss but may start recovering by the end of this week.
Small companies like Prudential Finance (Price 180, EPS 27, write back 231 million, only one question is: will it sustain?), HBDL (loss decreases substantially to 9 corer), etc may also come into center stage.
The insurance sector will remain basically stable and micro-finance companies may see some profit booking.
Hydro-power companies index may go down because of the Sunkoshi flood as it revealed the risk in this sector vividly, Chilime's performance is subdued, and some companies have gone too high in comparison to their performance.

The talks of this week will be dominated by guess works and speculations about dividend, particularly bonus shares from different companies and Tamakoshi. Tamakoshi is a big company, we should realize that big companies not necessarily provide big return. Hence, the euphoria may not translate into reality when Tamakoshi starts giving return back. Yes, applying in IPO is good as there will be big capital gain for this.
Overall, the market will remain so-so as we have not properly understood the importance of buy time, when it gets RED, bonus shares will be the leading discussion topics followed by Tamakoshi. Grand Bank will be the whopping boy.

Disclosure: This is just my opinion. Please park your money at your own