10 companies hold 56pc of Nepse total market cap
KATHMANDU, AUG 30 -
Ten companies account for a majority percentage of the total market capitalisation of companies listed in the Nepal Stock Exchange (Nepse) at the end of the last fiscal year. There are 207 companies listed in the domestic bourse.
Of the 10 companies, seven are commercial banks, two hydropower companies and one is communication related company. Their market capitalisation accounts for 56.26 percent (Rs 181 billion) of Nepse’s total market capitalisation (Rs 323 billion at the end of the last fiscal year.
When a few companies holding a significant portion of the market capitalisation, the market index fluctuates frequently, increasing risk. “A small fluctuation in share prices of such companies results in a big movement in the capital market,” said stock market analyst Rabindra Bhattarai.
Market capitalisation is also a symbol of people’s faith in companies. However, it also depends on companies’ size.
As of the end of the last fiscal year, Nepal Telecom has the biggest share in the total market capitalisation-19.43 percent. Standard Chartered Bank, Nabil Bank, Nepal Investment Bank, Himalayan Bank, Nepal SBI Bank, Everest Bank and Bank of Kathmandu rank from second to eighth position, respectively. The other companies making up the top ten are Butwal Power Company (ninth) and Chilime Hydropower Company (tenth).
Top 10 companies in terms of market capitalisation
Company >> Share in total market cap(%)
Nepal Telecom >> 19.43
Stand-Chart Bank >> 8.95
Nabil Bank >> 7.85
Nepal Investment Bank >> 3.83
Himalayan Bank >> 3.56
Nepal SBI Bank >> 3.26
Everest Bank >> 2.81
Bank of Kathmandu >> 2.40
Butwal Power >> 2.32
Chilime Hydro >> 1.85
Source: Nepse
Ten companies account for a majority percentage of the total market capitalisation of companies listed in the Nepal Stock Exchange (Nepse) at the end of the last fiscal year. There are 207 companies listed in the domestic bourse.
Of the 10 companies, seven are commercial banks, two hydropower companies and one is communication related company. Their market capitalisation accounts for 56.26 percent (Rs 181 billion) of Nepse’s total market capitalisation (Rs 323 billion at the end of the last fiscal year.
When a few companies holding a significant portion of the market capitalisation, the market index fluctuates frequently, increasing risk. “A small fluctuation in share prices of such companies results in a big movement in the capital market,” said stock market analyst Rabindra Bhattarai.
Market capitalisation is also a symbol of people’s faith in companies. However, it also depends on companies’ size.
As of the end of the last fiscal year, Nepal Telecom has the biggest share in the total market capitalisation-19.43 percent. Standard Chartered Bank, Nabil Bank, Nepal Investment Bank, Himalayan Bank, Nepal SBI Bank, Everest Bank and Bank of Kathmandu rank from second to eighth position, respectively. The other companies making up the top ten are Butwal Power Company (ninth) and Chilime Hydropower Company (tenth).
Top 10 companies in terms of market capitalisation
Company >> Share in total market cap(%)
Nepal Telecom >> 19.43
Stand-Chart Bank >> 8.95
Nabil Bank >> 7.85
Nepal Investment Bank >> 3.83
Himalayan Bank >> 3.56
Nepal SBI Bank >> 3.26
Everest Bank >> 2.81
Bank of Kathmandu >> 2.40
Butwal Power >> 2.32
Chilime Hydro >> 1.85
Source: Nepse
