NEFPORT ISSUE 44 – MARCH 2021
CAPITAL MARKET CAPITAL MARKET During the review period, the market has witnessed an extremely bullish trend with a recordhigh level of transactions. On a day-to-day basis, the secondary market set new records, as investors have turned towards the stock market owing to industrial operations being indefinitely shut or halted. Due to the IPO issued by Nepal Infrastructure Bank (NIFRA), the number of people opening Demat accounts has significantly increased. According to CDS & Clearing Ltd, there are currently over 2.8 million Demat accounts registered as of 19 February 2021 and over 10,000 accounts are being opened daily. Additionally, since the mid-term monetary policy did not revise the margin lending provision, the share market has continued to soar. During the review period, the Nepal Stock Exchange (NEPSE) index went up by a whopping 48.47%, closing at 23.50%, closing at 1,718.49 points. The total market capitalization reached NPR 3,584.76 billion (USD 30.44 billion) while the total floated market capitalization reached NPR
Secondary
Market:
1,252.54 billion (USD 10.63 billion). As indicated by Table 4, in this review period, all the indices landed in the green zone, as the market has remained bullish with high levels of the transaction. The highest gainer was the life-insurance sub-index (73.99%) followed by the micro-
finance sub-index (68.22%) and the manufacturing and the processing sub-index (33.48%). The lowest gainer during the review period was the hotels sub-index, recording a gain of 6.98% only.
Table 4. Key indicators
Particulars
November 18, 2020
February 16th, 2021
% Change
1,741.81
2,586.01
48.47
Commercial Bank
1,319.78
1,883.52
42.71
Development Bank
2,098.93
2,668.24
27.12
Hydropower
1426.44
1936.89
35.78
875.47
1,198.52
36.90
Non-Life Insurance
9,211.48
13,376.13
45.21
Others
1312.54
2057.03
56.72
Hotels
1,936.96
2,072.14
6.98
2722.8
4580.27
68.22
10,750.71
18,705.68
73.99
3,629.14
5,821.16
60.40
NEPSE Index Sub-Indices
Finance
Microfinance Life Insurance Manufacturing & Processing
Source: Nepal Stock Exchange (NEPSE)
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