Stock market size is 81 percent of GDP

Currently, Nepal's GDP is 61 trillion 7 billion, and the total market capitalization of NEPSE remained at 49 trillion 62 billion on Tuesday

श्रावण ७, २०८२

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Stock market size is 81 percent of GDP

What you should know

As the secondary market of securities continues to grow, the size of the stock market (total market capitalization) is also setting new records every day. According to which, on Tuesday, the total market capitalization reached 49 trillion 62 billion rupees. This is the highest ever.

 

Tuesday's market capitalization to gross domestic product (GDP) ratio of Nepal is 81.25 percent. The National Statistics Office has estimated that the total GDP of Nepal will reach 61 trillion 7 billion this year.

Total market capitalization is known as stock market size. Total market capitalization is calculated by multiplying the total number of shares listed on the secondary market by the share price on the same day.

Last Sunday, the total market capitalization of 47 trillion 90 billion 673 million rupees was maintained at 48 trillion 26 billion 99 billion 86 million rupees on Monday. On Tuesday, it increased to 49 trillion 62 billion rupees. The size of the market is setting a new record every day. Earlier, on February 3, 2081, the size of the stock market was 47 trillion 99 billion rupees. 

On Tuesday, the NEPSE index rose by 80.97 points to 2,973.70 points. NEPSE has reached its highest point in the last 11 months. Earlier on August 6, 2081 NEPSE was at 2 thousand 974 points. Since then, it reached 2,890 on February 18, 2081, but could not go above that. Compared to Monday, Tuesday increased by 2.79 percent. 

Out of the 236 companies that traded on that day, 14 companies decreased while their share prices increased. In a total of 177 thousand 101 times, 4 crore 35 lakh 81 thousand 228 shares were bought and sold.

From those purchases, shares worth 20 billion 853 million rupees have been traded. Compared to the previous day, the number of transactions, the share of transactions and the amount of transactions have all increased. A total of 138 thousand 828 shares were bought and sold in the stock market on Monday. Shares worth 16 billion 327 million rupees were traded from those purchases. 

Out of the 13 sub-groups that came into trading on Tuesday, the overall NEPSE increased by higher points. Among them, the index of sub-groups including production and processing, life insurance, hotel and tourism, and investment increased by a lot, which contributed to the high growth of the overall NEPSE. According to which, on Tuesday, the index of banking sub-group increased by 2.10, development bank by 2.26, finance company by 1.94, hotel and tourism by 3.44, and hydropower by 1.90 percent. 

Investments 3.24, Life Insurance 4.36, Manufacturing and Processing 4.63, Microfinance 4.07, Collective Investment Fund 0.56, Non-life Insurance 2.56, Other 3.26 and Business Subgroup index rose by 1.01 percent. 

After the stock price of Trade Tower increased by 10 percent on that day, the transaction was controlled through a circuit breaker. The share price of Shivam Cement increased by 9.99%, Sanbhi Energy by 9.99%, Unnati Sanjakar Laguvitta by 9.90% and Bindabasini Hydropower by 9.76%.

On Tuesday, share prices of LBBL Debenture (2089) fell by 3.94 percent, NIBL Growth Fund by 3.01 percent, Bottlers Nepal (Balaju) by 2.46 percent, Green Development by 2.19 percent and Panchkanya My Hydropower by 2.03 percent.

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