Decline by 23.4% in the index, 22.70% decline in market capitalization, increase in paid up value. See the details of NEPSE’s performance in the FY 2074/75

Nepalese Capital market has seen more downs than ups in the FY 2074/75. In the fiscal year 2074/75, the stock market decreased by 23.4% to reach  1,212.4 points while in the fiscal year 2073/74, the stock market decreased by only 7.90% to reach 1,582.70 points.

The decline has not just occurred in the NEPSE index but also in the market capitalization. The market capitalization has decreased by 22.70% in the fiscal year 2074/75. Market Capitalization had increased by 1.8% in the previous fiscal year but in the FY 2074/75 market capitalization has decreased to reach Rs 14.35 kharba.

The ratio of market capitalization to GDP stood at 47.70 percent in the FY 2074/75 which was 70.30 percent in the FY 2073/74.

Majority of the share of the capitalization is occupied by the banks and financial institutions. Banks, financial institutions and insurance companies hold 80.5% of the stock market. Hydropower sector holds 4.70%, Manufacturing and Processing holds 2.80%, Hotels hold 1.70%, Trading hold 0.10% and Others hold 10.20%.

The total number of companies listed at the NEPSE decreased to 196 in FY 2074/75 from 208 a year ago. Of the listed companies, 147 are BFIs (including insurance companies), 18 manufacturing and processing industries, 19 hydropower companies, 4 each hotels and trading institutions and 4 other sectors.

The total paid-up value of the listed shares increased by 21.60% to Rs 3.52 kharba with addition of Rs 1.31 kharba worth of securities. These consisted of Rs 30.83 arba worth of ordinary shares, Rs 36.14 arba worth of right shares, Rs 24.47 arba worth of bonus shares and Rs 36.47 arba worth of government securities.