41 billion share turnover in the week, only 49 percent of hydropower

Only 20 billion rupees worth of shares are bought and sold in the hydropower sub-group, the transactions of banks and financial institutions and insurance companies are decreasing.

Baishak 14, 2082

Kantipur Reporter

41 billion share turnover in the week, only 49 percent of hydropower

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Last week, shares worth 40 billion 985 million rupees were traded in the stock market. The share of banks and financial institutions and insurance companies in the total weekly turnover is only about 23 percent. This analysis has been done on the basis of the share transactions of companies under the sub-groups of commercial banks, development banks, finance companies, microfinance, life insurance and non-life insurance companies that took place last week from Sunday to Thursday.

The share of hydropower sub-group is only about 49 percent in the total share turnover of this period. During that period, only 20 billion rupees worth of shares have been bought and sold in the hydropower sub-group. In recent weeks, the share trading of companies in the hydropower sub-group has been increasing. But the turnover of banks and financial institutions and insurance companies is decreasing. This trend seems to increase the dominance of hydropower companies in the stock market. The financial condition of hydropower companies is good, due to reasonable returns, the trading share in the stock market has increased, and the share of banks and insurance companies has not decreased because the mentioned indicators are bad. 

The number of banks and financial institutions and insurance companies in the stock market has decreased. Especially due to mergers and acquisitions, the number of banks and insurance companies has decreased, but this process is continuing. In this way, the share of banks and financial institutions and insurance companies in the total turnover has also decreased due to the fact that there are fewer companies listed in the stock market. 

Most of those listed on the stock market in recent years are hydropower companies. Due to the large number of companies, the share of the hydropower sub-group in the total turnover is also seen to be higher. This sequence seems to increase even more. Currently, more than four dozen hydropower companies are among the companies that are in the process of issuing shares (IPO). As those companies have been listed in the secondary market, the number of companies in the hydropower sub-group will be around 150. Therefore, in the coming year, the share of banks, financial institutions and insurance companies in the stock market will decrease and hydropower will increase. 

The investment sub-group's share in last week's total turnover is 14.85 percent. During that period, shares worth 6.9 billion rupees have been traded in companies under this subgroup. The total number of companies listed in the Nepal Stock Exchange (NEPSE) is 268 till the end of March. Among them, 130 are banks and financial institutions and insurance companies. There are 91 hydropower companies, 22 manufacturing and processing industries, 7 hotels, 7 investment companies, 4 commercial organizations and 7 other groups. The number of companies listed in 080 Chait was 271. 

Among the listed companies, banks and financial institutions and insurance companies account for 53.2 percent of the securities market capitalization. The share of hydropower company is 15.7%, investment company is 7.6%, production and processing industry is 5.4%, business organization is 5.1%, hotel is 2.6% and other group of companies is 10.4%. 

The stock market opened on five days last week, of which the NEPSE decreased on four days, while the last day on Thursday, the NEPSE closed with an increase of normal points. NEPSE, which closed at 2,722.73 points last Thursday, fell to 2,658.02 points last Thursday.

Kantipur

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