Nepse Index increased by 28.4% in Mid Ferbruary 2016; stock market capitalization rises by 32.7%

The NEPSE Index increased by 28.4 percent to 1,263.7 points in mid-February 2016. A year ago, the index rises by 23.2 percent to 984.5 points. As per the Current Macroeconomics and Financial Situation of Nepal (CMES) report, the stock market has been continuously gaining a momentum due to the full dematerialized transactions from mid-January 2016, prevalence of excess liquidity in the financial system and the capital hike policy/plan of financial institutions. In the total market capitalization, the share of banks and financial institutions (including insurance companies) stood at 82.4 percent, hydropower 5.6 percent, manufacturing and processing companies 2.5 percent, hotels 1.7 percent, trading 0.1 percent, and others 7.7 percent respectively. Meanwhile, the stock market capitalization increased by 34.7 percent to Rs. 1,360.51 billion in mid-February 2016. This had surged by 24.2 percent a year ago. The ratio of market capitalization stood at 64 percent in mid-February 2016 compared to 52 percent a year ago. The total turnover of the securities increased by 8.5 percent  to Rs. 9.39 billion in mid-February 2016. The turnover of the securities had increased by 27.5 percent to Rs. 8.65 billion a year ago. 64. Total number of companies listed at the NEPSE decreased from 232 in mid-February 2015 to 230 in mid-February 2016 due to the merger of some BFIs. The total paid-up capital of the listed companies increased by 36.4 percent to Rs. 254.51 billion in mid-February 2016. Within the seven month of 2015/16, total additional securities worth Rs. 8.54 billion were listed in the NEPSE. These consist of ordinary shares of Rs. 1.89 billion, right shares Rs. 1.58 billion, bonus shares of  Rs. 3.37 billion and the debentures of Rs. 1.70 billion.