In the last fiscal year, bullish share prices caused the average
transaction volume to surpass the average turnover achieved during the
peak year of 2008-09.
The average daily turnover of Nepal Stock Exchange (Nepse) in the last fiscal year stood at Rs 95.04 million.
It was at this level — about Rs 92 million — in fiscal year 2008-09 — the year since the Nepse index started to tumble. The average daily turnover in fiscal year 2011-12 stood at Rs 44 million, while, in the previous fiscal year it remained at Rs 28.9 million.
Last year, the Nepse index had appreciated by 33 per cent. The benchmark index had rested at 389 points at the end of fiscal year 2011-12.
It closed at 518 points at the end of last fiscal year. The index had reached 1175 points in August 2008 — the highest so far.
In 232 days of trading since the beginning of last fiscal year, 81.5 million units of shares worth Rs 22.04 billion were traded. In the previous fiscal year, the share market witnessed trading worth Rs 10.27 billion of 41.8 million units of shares.
“Moreover, if share prices are increasing we see more transactions being held than when it is going down,” pointed out managing director of Kohinoor Investment Bharat Ranabhat.
The bullish stock prices attracted more investment in the capital market. After going through a steady decline in the last couple of years, fiscal year 2012-13 was a good year for investors.
Moreover, opening of margin type lending based on brokers’ guarantee by the Securities Board of Nepal (Sebon) also helped fuel transaction in the market.
Since the beginning of last fiscal year 2012-13, Securities Board of Nepal, Nepal Rastra Bank and the Finance Ministry allowed financial institutions to provide loans to investors while the share transfer is in a blank transfer state.
“Margin financing has allowed investors to purchase shares worth almost double the money they have which has fuelled share transactions in the last one year,” according to Ranabhat.
Financial institutions are providing 60 per cent to 70 per cent of the amount required to buy shares while investors have to furnish the remaining amount. As of the 11th month of last fiscal year, banks and financial institutions had provided loans worth Rs eight billion against the collateral of shares.
src : THT
The average daily turnover of Nepal Stock Exchange (Nepse) in the last fiscal year stood at Rs 95.04 million.
It was at this level — about Rs 92 million — in fiscal year 2008-09 — the year since the Nepse index started to tumble. The average daily turnover in fiscal year 2011-12 stood at Rs 44 million, while, in the previous fiscal year it remained at Rs 28.9 million.
Last year, the Nepse index had appreciated by 33 per cent. The benchmark index had rested at 389 points at the end of fiscal year 2011-12.
It closed at 518 points at the end of last fiscal year. The index had reached 1175 points in August 2008 — the highest so far.
In 232 days of trading since the beginning of last fiscal year, 81.5 million units of shares worth Rs 22.04 billion were traded. In the previous fiscal year, the share market witnessed trading worth Rs 10.27 billion of 41.8 million units of shares.
“Moreover, if share prices are increasing we see more transactions being held than when it is going down,” pointed out managing director of Kohinoor Investment Bharat Ranabhat.
The bullish stock prices attracted more investment in the capital market. After going through a steady decline in the last couple of years, fiscal year 2012-13 was a good year for investors.
Moreover, opening of margin type lending based on brokers’ guarantee by the Securities Board of Nepal (Sebon) also helped fuel transaction in the market.
Since the beginning of last fiscal year 2012-13, Securities Board of Nepal, Nepal Rastra Bank and the Finance Ministry allowed financial institutions to provide loans to investors while the share transfer is in a blank transfer state.
“Margin financing has allowed investors to purchase shares worth almost double the money they have which has fuelled share transactions in the last one year,” according to Ranabhat.
Financial institutions are providing 60 per cent to 70 per cent of the amount required to buy shares while investors have to furnish the remaining amount. As of the 11th month of last fiscal year, banks and financial institutions had provided loans worth Rs eight billion against the collateral of shares.
src : THT
