ShareSansar Forum

Author	Post
Rajesh Sharma	Reply #1 Mon Jun 16, 2014 12:41 pm
Member Registered: Jun 2013 Posts: 105	Jump in price of SCB shares: Surprise or no surprise? 1. This is that increase, which was over due for a long time. SCB is one of the safest and most secure companies as of now in Nepal. Hence, the price rise has been reflecting its rightful place. 2. Probably, big investor Mr. T finished his coffer buying SCB shares and now moved away from suppression attempts of its share price. 3. True or false, the 'inside information' that SCB might give bonus share from its reserve (as it is in practice in India and elsewhere) besides from its profit, also fueled this new jump. Hence, the BIG fellows are expecting bumper harvest. So, the price is moving up and up. (See floor sheet that of June 15, 2014, (http://www.nepalstock.com/datanepse/floorsheet.php) where 2 are above 1000 Kitta share transactions, 500 to 999 kittas are 6 and 200 to 499 are 16. This reflects that there are quite a good number of relatively medium and big buyers busy in selling and buying. Moreover, some of the highlights of the transactions include that broker number 54 sold and bought 1271 kitta in a single transaction, 45 sold and bought 1015 kittas in another single transaction, number 44 sold above 2700 kittas in several transactions and number 42 purchased more than 1700 Kittas in several transactions. More than 7000 shares, which is more than 50% of total traded SCB shares, changed hands through 29 last transactions at a price of 10% increase that is 2376. This says that this is neither CHALKHEL nor limited to a small group of people.) 4. SCB has already made it clear that it will stay in Nepal for considerably a long time. This message makes sense that its paid up capital will be much higher in the coming years. If it capitalizes its reserve, which is huge, that could bring windfall gain to its investors. This may be true or it is just a tactic, I do not know. But, it has made its impact already. 5. The traders also have started to speculate that the "flavor of the month" is banking sector and among them BIG companies are in line to gallop. SCB, which was not in their preferred list of the basket of companies, turned to be as their new found darling now. 6. Over all, the market sentiment is pushing SCB share price up and may be after a few small corrections in between, it would continue to rise again (modestly or even sharply) till it declares its next dividend. 7. I am not sure if it is good to buy for trading but certainly it is good to buy for long term investment, say for 3 to 5 years or more. And, this is HOLD share in its current price for the investors. For traders, it all depends on their plan, objective, margin of capital gain and their core strategy. I did not see any surprises in the rise of SCB price, this is market that decided its price. Yes, some of the information that created its foundation like higher bonus shares and capitalization of reserve may turn simply as rumors. However, without those factors too, SCB's current share price could sustain or even increase. (For several small notes and comments about SCB, I have written in the past, please visit my blog: www.sharenepalcomments.wordpress.com) Disclosure: I own SCB shares, which is about 18% of my total investment in the market. Hence, please read my comment with that information and please share your perspectives. https://www.facebook.com/groups/531177483586163/permalink/693467767357133/

Jump in price of SCB shares: Surprise or no surprise?

1. This is that increase, which was over due for a long time. SCB is one of the safest and most secure companies as of now in Nepal. Hence, the price rise has been reflecting its rightful place.

2. Probably, big investor Mr. T finished his coffer buying SCB shares and now moved away from suppression attempts of its share price.

3. True or false, the 'inside information' that SCB might give bonus share from its reserve (as it is in practice in India and elsewhere) besides from its profit, also fueled this new jump. Hence, the BIG fellows are expecting bumper harvest. So, the price is moving up and up.
(See floor sheet that of June 15, 2014, (http://www.nepalstock.com/datanepse/floorsheet.php) where 2 are above 1000 Kitta share transactions, 500 to 999 kittas are 6 and 200 to 499 are 16. This reflects that there are quite a good number of relatively medium and big buyers busy in selling and buying. Moreover, some of the highlights of the transactions include that broker number 54 sold and bought 1271 kitta in a single transaction, 45 sold and bought 1015 kittas in another single transaction, number 44 sold above 2700 kittas in several transactions and number 42 purchased more than 1700 Kittas in several transactions. More than 7000 shares, which is more than 50% of total traded SCB shares, changed hands through 29 last transactions at a price of 10% increase that is 2376. This says that this is neither CHALKHEL nor limited to a small group of people.)

4. SCB has already made it clear that it will stay in Nepal for considerably a long time. This message makes sense that its paid up capital will be much higher in the coming years. If it capitalizes its reserve, which is huge, that could bring windfall gain to its investors. This may be true or it is just a tactic, I do not know. But, it has made its impact already.

5. The traders also have started to speculate that the "flavor of the month" is banking sector and among them BIG companies are in line to gallop. SCB, which was not in their preferred list of the basket of companies, turned to be as their new found darling now.

6. Over all, the market sentiment is pushing SCB share price up and may be after a few small corrections in between, it would continue to rise again (modestly or even sharply) till it declares its next dividend.

7. I am not sure if it is good to buy for trading but certainly it is good to buy for long term investment, say for 3 to 5 years or more. And, this is HOLD share in its current price for the investors. For traders, it all depends on their plan, objective, margin of capital gain and their core strategy.
I did not see any surprises in the rise of SCB price, this is market that decided its price. Yes, some of the information that created its foundation like higher bonus shares and capitalization of reserve may turn simply as rumors. However, without those factors too, SCB's current share price could sustain or even increase.

(For several small notes and comments about SCB, I have written in the past, please visit my blog: www.sharenepalcomments.wordpress.com)

Disclosure: I own SCB shares, which is about 18% of my total investment in the market. Hence, please read my comment with that information and please share your perspectives.

https://www.facebook.com/groups/531177483586163/permalink/693467767357133/