Nepse starts to loose

Nabil Bank lost Rs 35 per unit share to drag the banking index down by 2.23 points to close at 366.22 points today.
Except trading, all the other eight groups witnesed their shares being traded today. But three groups including the market propeller banks group lost, whereas the five groups gained.
However, these groups couldnot lift the Nepse and investors' confidence as the Nepse lost 0.12 point to close today's trading at 404.06 points.
The book close of the most of the companies coupled with the low return has repealed the investors from the secondary market currently.
The secondary market has started to go down after a little recovery from the bottom low of 390-point.Meanwhile, the year on year (y-o-y) Nepse index declined by 25 per cent to 424.9 points in mid November 2010. The index had stood at 566.9 in the same period last year.
The decline in share prices was on account of the significant increase in the supply of securities.
Similarly, the y-o-y stock market capitalisation decreased by 12.8 per cent to Rs 362.0 billion in mid November. The decrease in market capitalisation has also brought its ratio with gross domestic product (GDP).
The ratio of market capitalisation to GDP stood at 27.4 percent in mid November. "The ratio was 35.1 per cent a year ago. Of the total market capitalisation, the share of bank and financial institutions stood at 72.5 per cent followed by manufacturing and processing companies (2.3 per cent), hotels (1.5 per cent), business entities (0.4 per cent), hydropower (4.6 per cent) and other sectors (18.7 per cent).
The total paid-up capital of the listed companies stood at Rs 90.1 billion in mid-November, registering an increase of 33.5 per cent over the period of one year. The increase was largely due to the additional listing of securities at the secondary market.
As at mid November, additional securities worth Rs 14.6 billion (ordinary share worth Rs 5.3 billion, bonus share worth Rs 0.7 billion, right share worth Rs 3.6 billion and government securities worth Rs 4.9 billion) were listed at the Nepse.
The total number of companies listed also increased to 186 in mid- November from 163 last year. Among them, 154 were banks and financial institutions (including insurance companies), followed by production and processing industries (18), hotels at four, business entities at four, hydropower companies at four and companies in other groups at two.