Nepal’s Stock Market is dominated by Insurance and BFIs

Kathmandu: The domestic capital market is strongly dominated by BFIs and Insurance companies. As per the updated data released by Central Bank, Nepal Rastra Bank the share of BFIs and insurance companies in stock market capitalization is 68.2 percent.

Such a share for hydropower companies is 9.8 percent, investment companies 8.4 percent, manufacturing and processing industries 3.9 percent, hotels 1.4 percent, trading companies 0.5 percent and the share of other companies is 7.8 percent.

NEPSE index stood at 3160.1 in mid-August 2021 compared to 1391.5 in mid-August 2020. 61. Stock market capitalization in mid-August 2021 stood Rs.4,414 billion compared to Rs.1,837 billion in mid-August 2020. The number of companies listed at NEPSE was 208 in mid-August 2020.

                                                                                                              Source: Macro-economic Survey 2021, Nepal Rastra Bank

The paid-up value of 5.85 billion shares listed at NEPSE stood Rs.575.50 billion in mid-August 2021. Securities worth Rs.17.73 billion were listed at NEPSE during the first month of 2021/22. Such securities comprise debenture worth Rs.13.75 billion, ordinary share worth Rs.2.88 billion, bonus shares worth Rs.573.9 million and right share worth Rs.524.1 million. Securities Board of Nepal(SEBON) approved the total issuance of securities worth Rs.4.82 billion which includes mutual fund worth Rs.3 billion, ordinary share worth Rs.1.57 billion and right share worth Rs.243.3 million in the review period.

As per Nepal Stock Exchange (NEPSE) the total market capitalization was Rs. 3,947,150 Millions on September 23, 2021.

Out of the number of companies listed at Nepal Stock Exchange (NEPSE) reached 220 in mid-August 2021, out of which 144 are Bank and Financial Institutions (BFIs) and insurance companies. And rest number includes 40 hydropower companies, 19 manufacturing and processing industries, 5 hotels, 4 trading companies, 5 investment companies and 3 others.

 

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