Insurance sector index has risen 41 percent in the past six months
between Falgun and Bhadra. The index was at 866.1 points in the month of
Falgun but shot up to 1221.23 points by the first week of Bhadra.
According to stakeholders, investors are attracted to insurance shares due to rapid expansion of the insurance business, good financial health of the companies, improved EPS and P/E ratio in the recent years.
However, the recent jump in prices has also been attributed to large scale buying of insurance shares by institutional investors like developments banks and finance companies.
Insurance Board has directed insurance companies to increase their paid up capital and as a result many insurance companies are expected to issue bonus shares and right shares. This has also contributed to lure investors toward insurance shares.
Out of total 25 life and nonlife insurance companies in Nepal, 19 are listed at NEPSE.
src sharesansar
According to stakeholders, investors are attracted to insurance shares due to rapid expansion of the insurance business, good financial health of the companies, improved EPS and P/E ratio in the recent years.
However, the recent jump in prices has also been attributed to large scale buying of insurance shares by institutional investors like developments banks and finance companies.
Insurance Board has directed insurance companies to increase their paid up capital and as a result many insurance companies are expected to issue bonus shares and right shares. This has also contributed to lure investors toward insurance shares.
Out of total 25 life and nonlife insurance companies in Nepal, 19 are listed at NEPSE.
src sharesansar
