Last week, shares of 47.89 billion 58 million rupees were traded, but only 30.39 billion 24 million rupees for hydropower.
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The increasing dominance of the hydropower sub-group in the secondary market (NEPSE) was also seen in last week's trading. In the five days of that period, a total of 47 billion 895 million rupees worth of shares were traded. According to NEPSE data, share trading worth 30 billion 39 billion 24 lakh rupees is of hydropower companies only. This is 63.58 percent of the total weekly turnover. The mentioned data confirms that the dominance of the hydropower sub-group in the stock market is increasing.
The listing of hydropower companies has increased significantly in recent years. According to this, the number of hydropower companies listed in the stock market has reached 91 till last Thursday. Most of the companies listed in the last week are also hydropower companies. Experts say that the dominance of the hydropower sub-group in the total share turnover has increased due to the large number of companies.
89 companies have applied for IPO permission worth 56 billion 70 million 93 lakh 27 thousand 132 rupees in Nepal Securities Board.
Most of them are 43 companies belonging to hydropower group. The company has sought permission to issue 193 million shares worth 19.44 billion rupees. Among those who applied to the board, there are 9 companies from hotel and tourism, 3 from investment group, 18 from production and processing, 1 from finance company, 3 from microfinance and 12 from other sectors. Experts say that in the future, many of the companies listed in NEPSE will be hydropower companies, so the share of the companies in the sector will increase.
Banks and financial institutions and insurance companies accounted for 17.23% of the total shares traded last week, investment 10.21%, production and processing 2.55%, others 3.18%, trade 0.64%, hotels and tourism 0.64% and founder shares 2.18%.
Nepali stock market was dominated by banks and financial institutions and insurance companies for a long time. Until 2/4 years ago, the average share of banks and insurance in the total share turnover was more than 80 percent. Due to mergers and acquisitions, the share of banks and financial institutions and insurance companies is continuously decreasing. Along with the decrease in this share, the share of banks and financial institutions and insurance groups is also decreasing in the stock market. In terms of
market capitalization, banks and financial institutions and insurance groups still have the largest share. Although the number of financial institutions and insurance companies has decreased due to mergers and acquisitions, the number of listed shares has not been greatly affected. When two organizations merge, at least one organization ceases to exist.
If both institutions are listed in NEPSE, one number is reduced. However, the number of listed shares does not decrease except in cases where the company share matching ratio is unequal (the share matching ratio of one is very high and the other is very low), so the size of the stock market (total market capitalization) is still dominated by banks and financial institutions.
Banks and financial institutions and insurance companies have a share of 53.2 percent of the securities market capitalization among listed companies until the end of February. Similarly, the share of hydropower company is 15.7%, investment company 7.6%, production and processing industry 5.4%, trade 5.1%, hotel 2.6% and other subgroups share 10.4%, according to NEPSE.
Shares were traded on all five days of last week. Out of which NEPSE increased on two days (Tuesday and Wednesday) and decreased on three days (Sunday, Monday and Thursday). NEPSE decreased by 25.46 points in three days and increased by 63.28 points in two days. In this way, NEPSE is positive by about 38 points in the weekly trading as there are more points to increase than to decrease. NEPSE, which closed at 2,623.83 points last Wednesday, rose to 2,661.64 points last Thursday.
Last week, shares were traded 430,547 times, in which 118.9 million 30,567 shares were bought and sold. NEPSE said that there was a share transaction worth 48 billion rupees in those purchases.
