Look at the outgoing fiscal year’s major highlights; who gained and lost the most in FY 75/76?

As the market moves in to the new fiscal year 76/77, the investors have a rather hopeful view towards the market. While preparing for the worst and hoping for the best, the new fiscal year marks the beginning of a fresh period for the market during which old mistakes are to be pondered upon and new benchmarks to be achieved. For this, a review of the developments in the previous year is necessary.

The previous year has been full of ups and downs for the market and the investors. The year began with hyped up implementation of online trading system followed by a liquidity crunch in the market. During this period, the anticipated IPOs of two big players- Upper Tamakoshi (UPPER) and Shivam Cements Limited (SHIVM) was issued, receiving exceptional response from the investors. The commercial banks broke the gentleman’s agreement a couple of times before entering into another agreement to have uniform interest rates on deposit services. The year also saw outburst of protests from the investors, demanding implementation of changes in the securities market. The year ended with anticipation of merger and acquisitions among BFIs as NRB’s bid to reduce the number of BFIs but increase their reach in the country.

During the review period (from 17^th July, 2018 to 16^th July, 2019), NEPSE index opened at 1212.36 points and closed at 1259.01 points gaining 46.65 points or 3.85%. NEPSE Index hit a low of 1098.95 points on 5^th March, 2019 and high of 1349.38 points on 30^th May, 2019. The turnover during the period stood at Rs.1.09 Kharba achieved from trade of 38.57 Crore units of shares traded through 14.15 Lakh transactions trading scrips of 177 listed companies in the process. The market capitalization opened at Rs.14.25 Kharba and grew to Rs.15.67 Kharba by the end of the fiscal year.

In terms of volume and turnover, Nepal Bank Limited (NBL) stood ahead with turnover of Rs.76.21 Crore and trade of 2.44 Crore units of shares. The stock price of the commercial bank stood at Rs.281 at the beginning of the review period and grew to Rs.336 by the end, growing by 19.57%.

For some scrips, the year turned out to be fruitful. Promoter Shares of National Life Insurance Company Limited (NLICLP) gained the most during the period. The stock prices grew from Rs.400 to Rs.1070, gaining 167.50% in the review period. Gurans Laghubitta Bittiya Sanstha (GLBSL) stood behind NLICLP after gaining 150%, opening at Rs.160 and closing at Rs.400 per share.

 (*Price adjustment for right/bonus has not been considered)

While for some, it was a rough period. Capital Merchant Banking and Finance Limited (CMB) stocks initially stood at Rs.140 but fell to Rs.22 by the end of the year, losing 84.29% in the review period. CMB was followed by Naya Nepal Laghubitta (NNLB) as it opened at Rs.2157 and closed at Rs.385, losing 82.15% in the review period.

 (*Price adjustment for right/bonus has not been considered)