Finance Companies' Overall Market Capitalization Has Dropped By 52% Since The All Time High; GUFL Suffered Most By Falling 70%
Fri, Jun 10, 2022 10:45 AM on Stock Market, Exclusive, Featured,
The stock prices of 15 finance companies listed on the Nepal Stock Exchange (NEPSE) have dropped 52% since their peak on August 18, 2021. On the basis of declining prices alone, investors who have bought at the highest price point of Finance companies have half of their investment.
The share price of finance companies, which account for around 2% of the market capitalization, has dropped by more than half since its peak. The drop of nearly a 1150 points on the indicator, which had climbed as high as 3200, has had a negative influence on most companies' values. Finance companies have also suffered as a result of this.
The amount of market capitalization is in Rs Millions
|
SN |
Symbol | Company | 18th August 21(Rs) | 9th June 22(Rs) | Difference | % of Difference | Share Capital at 18 Aug,21 | Market Capitalization 18 Aug, 21 | Share Capital 9th June, 22 | Market Capitalization at 9 June,22 | Difference(Rs) | Difference(%) | Weightage |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 | GUFL | Gurkhas Finance Limited | 1,299.00 | 395 | -904 | -70% | 8,679,937.00 | 11,275 | 8,679,937.00 | 3,428 | (7,846) | -70% | 0.12% |
| 2 | CFCL | Central Finance Limited | 729 | 288 | -441 | -60% | 8,810,357.47 | 6,422 | 9,488,755.00 | 2,732 | (3,689) | -57% | 0.09% |
| 3 | ICFC | ICFC Finance Limited | 1,109.70 | 439 | -670.7 | -60% | 10,242,658.18 | 11,366 | 11,266,924.00 | 4,946 | (6,420) | -56% | 0.17% |
| 4 | MPFL | Multipurpose Finance Company Limited | 639.9 | 247.9 | -392 | -61% | 4,000,000.00 | 2,559 | 4,520,000.00 | 1,120 | (1,439) | -56% | 0.04% |
| 5 | PFL | Pokhara Finance Limited | 853 | 353 | -500 | -59% | 9,631,457.78 | 8,215 | 10,409,198.00 | 3,674 | (4,541) | -55% | 0.13% |
| 6 | GMFIL | Guheswori Merchant Banking & Finance Limited | 670 | 272.5 | -397.5 | -59% | 8,640,000.00 | 5,788 | 9,504,000.00 | 2,589 | (3,198) | -55% | 0.09% |
| 7 | MFIL | Manjushree Finance Limited | 1,370.00 | 448 | -922 | -67% | 9,653,949.29 | 13,225 | 13,515,529.00 | 6,054 | (7,170) | -54% | 0.21% |
| 8 | RLFL | Reliance Finance Limited | 712.5 | 294 | -418.5 | -59% | 9,156,578.26 | 6,524 | 10,530,065.00 | 3,095 | (3,428) | -53% | 0.11% |
| 9 | PROFL | Progressive Finance Limited | 520 | 250 | -270 | -52% | 8,076,481.13 | 4,199 | 8,561,070.00 | 2,140 | (2,059) | -49% | 0.07% |
| 10 | GFCL | Goodwill Finance Company Limited | 904.7 | 423 | -481.7 | -53% | 8,672,000.00 | 7,845 | 9,461,152.00 | 4,002 | (3,843) | -49% | 0.14% |
| 11 | SFCL | Samriddhi Finance Company Limited (former World Merchant Banking) | 685 | 233 | -452 | -66% | 5,459,409.33 | 3,739 | 8,189,114.00 | 1,908 | (1,831) | -49% |
0.06% |
| 12 | SIFC | Shree Investment Finance Company Limited | 653 | 320 | -333 | -51% | 8,901,349.12 | 5,812 | 9,586,753.00 | 3,067 | (2,744) | -47% | 0.10% |
| 13 | JFL | Janaki Finance Company Limited | 713 | 385 | -328 | -46% | 6,004,111.30 | 4,280 | 6,904,728.00 | 2,658 | (1,622) | -38% | 0.09% |
| 14 | NFS | Nepal Finance Limited | 765 | 285 | -480 | -63% | 4,934,964.12 | 3,775 | 8,389,439.00 | 2,390 | (1,384) | -37% | 0.08% |
| 15 | BFC | Best Finance Company Limited | 599 | 382.2 | -216.8 | -36% | 8,289,140.00 | 4,965 | 8,289,140.00 | 3,168 | (1,797) | -36% | 0.10% |
| AVERAGE | 814.85 | 334.37 | -58% | 7,943,492.87 | 6,666 | 9,153,053.60 | 3,131 | (3,534) | -52% | ||||
| SUM | 12,222.80 | 5,015.60 | 119,152,392.99 | 99,997 | 137,295,804.00 | 46,978 | 2% |
Investors who bought Gurkhas Finance Limited (GUFL) shares when they were at their all-time high have already lost 70% of their investment. As can be seen from the chart above, the majority of finance companies are trading at half the price of the all-time high.
| NEPSE INDEX 18th Aug, 21 | NEPSE INDEX 9 June, 22 | Difference (%) | Finance Co. Index Index-18 Aug,21 | Finance Co. Index-9 June, 22 | Difference (%) | Market Capitalization @18 Auy, 21 | Market Capitalization @9June, 22 | Difference |
|---|---|---|---|---|---|---|---|---|
| 3,198.60 | 2,062.81 | -36% | 3,194.32 | 1,530.59 | -52% | 4,468,505 Millions | 2,938,447 Millions | -34% |
Despite the growth in the number of shares, finance companies’ overall index has dropped by around 52 percent and the overall market capitalization has also dropped by 34 percent. Due to all these factors, the NEPSE index has also declined by 36 percent since the all-time high.
* 18th August, 2021 is the date of All-Time high.
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