The investors have earned more from shares of the medium
level companies with smaller price from the transactions in the past two and
half months. The Nepal Stock Exchange (Nepse) has risen by around 200 points
after the second election of Constituent Assembly (CA), while the share price
of over half a dozen of 87 companies, whose shares are traded frequently, have
increased by more than 100 percent. Most of the companies whose share price has
increased more have a lower share price.
The Nepse index has risen by 183.49 points to 783.91 after
the CA election. It is greater than that on November 14, when Nepse reached
600, by 30.56 percent. The market that crossed 800 in two and half months after
that has dropped to 783.91 on Wednesday. The share price of majority of
companies whose shares are frequently traded has risen during the period.
The investors who had invested in shares of Everest Bank at
the rate of Rs 1,664 on November 14 have earned Rs 513 or 30.82 percent by
Wednesday. Similarly, those who had invested Rs 140 for shares of United
Insurance Company have earned Rs 200 or 142.85 percent. The share price of Life
Insurance Corporation has reached Rs 2,450 after rising by Rs 687 in the period
while the share price of Shine Resunga Development Bank has risen by 128.34
percent from Rs 170 to Rs 388. The share price of Self Employment Micro Finance
Development Bank has also risen by 110.74 percent from Rs 410 to Rs 864. United
Insurance has seen the biggest rise in terms of percentage while Nepal Life
Insurance has seen the biggest rise in terms of rupee per unit. The share price
of Nepal Life Insurance that was Rs 2,479 per unit on November 14 has risen by
Rs 1,151 to Rs 3,630 by Wednesday.
The investors investing in insurance, hydropower and micro
finance companies have earned more. Though those who have invested in
commercial banks, development banks, and finance companies have earned, they
have earned less. Those who have invested in insurance companies have earned
more than those who have invested in groups. Spokesperson of the Securities
Board of Nepal (SEBON) Niraj Giri stated that investors have been attracted
toward micro finance companies after a few of them provided good return. “The
investors seem to be targeting greater return by making a smaller investment.
This is a sign of maturity,” he said. “The majority of companies have chosen
the medium companies as they provide greater return than blue-chip companies,”
he reasoned. He explained that the share price of insurance and hydropower
companies also rose more as they provided better return than others.
Investor Ambika Prasad Poudyal reasoned that the share price
of insurance and micro finance companies has risen more as development banks
and fiancé companies have invested in the shares of insurance and micro finance
companies. Stating that a short-term institutional investment on shares has a
negative impact on the market he said, “The market will improve if it is held
for a long period.” He revealed that the return provided by the insurance and
micro finance companies is also comparatively better.
Former President of the Stockbroker Association of Nepal
Anjan Raj Poudyal also confirmed that investors investing in the insurance and
micro finance companies have earned more. “There was comparatively
under-pricing of shares of insurance companies until some time back. The share
price of insurance and hydropower companies has risen now as the banks and
financial institutions are investing on them,” he reasoned. He explained that the
financial institutions have started to invest on insurance and hydropower
companies as investing on companies of similar nature will lead to
cross-holding. He explained that the price of insurance companies has risen
more than others also because the Collective Investment Trust has also invested
on shares of insurance companies while managing investment. He argued that
attraction of insurance companies has also increased as they have distributed
bonus shares in good proportion while raising paid-up capital.
10 companies whose share price has increased most in
rupee after November 14
|
Company
|
Wednesday
|
Nov 14
|
Difference
|
|
Nepal Life Insurance Company
|
3630
|
2479
|
1151
|
|
Life Insurance Corporation
|
2450
|
1763
|
687
|
|
National Life Insurance
|
1840
|
1235
|
605
|
|
Everest Bank
|
2177
|
1664
|
513
|
|
Butwal Power Company
|
1270
|
800
|
470
|
|
Shikhar Insurance
|
1000
|
544
|
456
|
|
Self Employment Micro Finance Development Bank
|
864
|
410
|
454
|
|
Summit Micro Finance
|
890
|
459
|
431
|
|
Sagarmatha Insurance
|
1161
|
835
|
326
|
|
Rural Micro Finance Development Bank
|
880
|
560
|
320
|
10 companies whose share price
has increased most in percent after November 14
|
Company
|
Wednesday
|
Nov 14
|
Difference
|
|
United Insurance
|
340
|
140
|
142.86
|
|
Shine Resunga Development Bank
|
388
|
170
|
128.34
|
|
Self Employment Micro Finance Development Bank
|
864
|
410
|
110.74
|
|
Alliance Insurance
|
550
|
263
|
109.125
|
|
Triveni Development Bank
|
323
|
159
|
103.144
|
|
City Development Bank
|
385
|
192
|
100.52
|
|
Bishwo Development Bank
|
265
|
133
|
99.25
|
|
Summit Micro Finance
|
890
|
459
|
93.89
|
|
Machhapuchchhre Bank
|
465
|
250
|
86
|
|
Shikhar Insurance
|
1000
|
544
|
83.83
|
