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DOCKING NEPAL’S ECONOMIC ANALYSIS
Capital Market
FACTSHEET
During the review period, the secondary market has been on a bearish trend. The central bank increased the interest rate, which attracted capital funds from the capital market to the Banks and Financial Institutions (BFIs) as they offer higher rate of return and are risk free. Moreover, the increase in fuel prices and the increase in inflation has further aggravated the decreasing stock market. However, the commercial bank subindex performed well because they posted higher earnings this quarter compared to the previous quarter. Secondary Market: During the review period, the NEPSE index decreased by 14.67%, closing at 2173.44 points. The total market
capitalization at the end of the review period amounted to NPR 3094.37 billion (USD 25.35 billion), while the total floated 2-Mar-22
Table 6 Key indicators. Source: Nepal Stock Exchange (NEPSE)
Figure19 NEPSE Movement Index
Source: Nepal Stock Exchange (NEPSE)
NEPSE Index (mid-April, in points)
2415.3 Stock market capitalization (mid-Jan)
NPR 3426.11 billion Number of companies listed at NEPSE (mid-Jan)
229
market capitalization reached NPR 1098.59 billion (USD 8.99 billion). The most significant decrease was seen by the Others 30-May-22
% Change
NEPSE Index
2,547.04
2,173.44
(14.67%)
Sub-Indices Commercial Bank Development Bank Hydropower Finance Non-Life Insurance Others Hotels & Tourism Microfinance Mutual Fund Life Insurance Manufacturing & Processing
1,651.62 4,308.47 3,104.25 2,119.62 11,356.43 2,238.35 2,911.25 4,887.48 15.34 13,371.10 6,100.97
1,516.36 3,715.61 2,485.33 1,570.85 9,233.51 1,599.50 2,792.04 4,478.16 15.01 10,472.88 5,250.29
(8.19%) (13.76%) (19.94%) (25.89%) (18.69%) (28.54%) (4.09%) (8.37%) (2.15%) (21.68%) (13.94%)
