NEPSE witnesses decline by 25 pc
The year on year (y-o-y) Nepal Stock Exchange (NEPSE) index decreased by 25.3 percent to 548.61 points in mid December 2009. This index was 734.85 in the same period last year.
The NRB first five month data of the fiscal year 2009/10 said that NEPSE sensitive index (based on July 2006) stood at 135.89 point in mid December 2009 as against 191.17 in mid December 2008.
The NEPSE float index, calculated on the basis of closing transaction of August 24, 2008 (as base market value), and remained at 52.54 in mid December 2009, a contraction of 24.3 percent compared to the same period last year.
The y-o-y market capitalization increased by 2.9 percent to Rs.401.55 billion in mid December 2009. The ratio of market capitalization to GDP stood at 37.1 percent in the review period. It was 40.7 percent in the same period last year. Of the total market capitalization, bank and financial institutions accounted for 73.5 percent followed by manufacturing and processing companies (1.9 percent), hotels (1.2 percent), business entities (0.4 percent), hydropower (4.1 percent) and other economic sectors (18.9 percent).
The total paid up capital of the listed companies stood at Rs. 67.92 billion in mid December 2009, an increase of 45.7 percent over the period of one year. This increase was largely due to the additional listing of securities with the NEPSE. As at the fifth month of 2009/10, additional securities worth Rs.13.12 billion (ordinary share of Rs.3.23 billion, bonus share of Rs.779.5 million, right share of Rs.3.36 billion and government securities of Rs.5.75 billion) were listed with the NEPSE.
The monthly turnover to market capitalization ratio remained at 0.59 percent in mid December 2009, compared to 0.48 percent a year ago.
Total number of companies listed with the NEPSE increased to 165 in mid December 2009 compared to 144 in the same period last year. Among them, 133 are banks and financial institutions (including insurance companies), followed by production and processing industries (18), hotels (4), business entities (4), hydropower (4) and companies in other groups (2).
The twelve-month rolling standard deviation which reflects the volatility of the stock market, stood at 57.1 in mid December 2009 compared to 116.9 during the same period last year.
