Six months overview of capital market:NEPSE Index increases by 26.7%

The NEPSE index on year-on-year basis increased by 26.7 percent to 1,190.2 points in mid-January 2016. This index had increased by 19.4 percent to 939.5 points a year ago.

The stock market that was continuously declining from mid September 2015 to November owing to the Terai unrest and supply disruptions, 13 has been continuously gaining a momentum of late.

The twelve months' rolling standard deviation of NEPSE index increased by 31.5 percent in mid-January 2016. On the basis of daily (sector-wise) transactions from mid-December 2015 to mid-January 2016, the hydro power sector's index shows the highest volatility followed by the development banks.

The stock market capitalization on y-o-y basis increased by 33.2 percent to Rs. 1,282.87 billion in mid-January 2016. This had increased by 20.4 percent a year ago. The ratio of market capitalization stood at 60.4 percent in mid-January 2016 compared to 49.6 percent a year ago.

In the total market capitalization, the share of banks and financial institutions (including insurance companies) stood at 82.2 percent, hydropower 5.5 percent, manufacturing and processing companies 2.5 percent, hotels 1.8 percent, trading 0.1 percent, and others 7.8 percent respectively.

On y-o-y basis, the total turnover of the securities increased by 114.7 percent to Rs. 9.93 billion in mid-January 2016. The turnover of the securities was decreased by 42.5 percent to Rs. 4.63 billion a year ago. In the total turnover, the share of commercial bank was 37.9 percent, insurance companies was 28.6 percent, development bank was 17.7 percent, promoter share was 6.9 percent, hydropower sector was 5.3 percent, finance companies was 2.3 percent, hotel was 0.5 percent, mutual fund was 0.2 percent and other sectors was 0.3 percent.

Total number of companies listed at the NEPSE decreased from 232 in mid-January 2015 to 230 in mid-January 2016 due to the merger of some BFIs.  On y-o-y basis, total paid-up capital of the listed companies increased by 35.9 percent to Rs. 252.12 billion in mid-January 2016. In the sixth month of 2015/16, total securities worth Rs. 7.69 billion were listed in the NEPSE. These consist of ordinary shares Rs. 1.74 billion, right shares Rs. 1.46 billion, bonus shares Rs. 2.79 billion and the debentures Rs. 1.70 billion.