KATHMANDU, May 29: The investors’ attraction to the share market increased by a notable rate last year although there was a significant fall in the market value of the stocks.
The Economic Survey 2022/23 unveiled by the Ministry of Finance (MoF) on Sunday, shows that 19.4 percent of the country’s total population is now involved in the share transaction as of mid-March 2023. During the first eight months of the current fiscal year, the number of demat accounts jumped from 3.789 million to 5.654 million.
According to the MoF records, the market capitalization however declined by 25.5 percent in the one year between mid-March 2022 and mid-March 2023. In the review period, the market capitalization dropped to Rs 2.823 trillion from Rs 3.782 trillion.
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Banks and financial institutions and insurance companies held the largest proportion of 64.7 percent in the total market capitalization. Likewise, hydropower made up 13.9 percent, ‘others’ 8.4 percent, investment 6.8 percent and manufacturing and processing held 3.9 percent of the total share prices.
The Economic Survey shows that the transactions dropped significantly by 71.8 percent during the review period. In the review period, the turnover amount fell to Rs 297.49 billion from Rs 1.053 trillion.
With an increased participation of the investors, the primary market mobilized capital almost a double in size during the review period. According to the MoF, the capital mobilized through the primary market was Rs 4.146 trillion, which was 93.3 percent more in the same period of the previous year.
The public limited companies listed at the Nepal Stock Exchange (Nepse) generated Rs 5.76 billion through issuance of primary shares, Rs 950 million through issuance of right shares and Rs 27 billion by using debenture, while mutual funds mobilized a total of Rs 7.75 billion.
