Nepalese Stock Market Soars to New Heights in 30-Day Rally; Revealing the Top-Gaining Companies Across Every Sector

The Nepalese stock market has embarked on an exhilarating journey of growth, witnessing a remarkable surge from the 1,800 levels to the coveted 2,000 levels within a span of 30 days. Market participants and analysts are astounded by the rapid ascent, as major indices experienced a resounding upward trajectory, setting new milestones and igniting a renewed sense of optimism in the investment landscape.

The Nepalese Stock Exchange (NEPSE) Index, the barometer of the overall market performance, witnessed an unprecedented surge, surging by a staggering 230.95 points, closing at an impressive 2,097.29 on July 2, 2023, compared to the previous month's value of 1,866.34. This momentous surge represents a remarkable growth rate of 12.37% within the one-month period.

Notably, the Sensitive Index, a carefully curated selection of large-cap stocks, emerged as a shining star in the market, basking in a resplendent glow of growth. The index surged by 34.90 points or 9.81%, reaching an impressive level of 390.52. This remarkable rise in the sensitive stocks reflects the market's ability to identify and reward companies with solid fundamentals and promising growth potential.

The Float Index, a key indicator of tradable shares, witnessed a remarkable surge, ascending by 15.16 points or 11.64% to settle at 145.37. Investors keenly watched the Sensitive Float Index, a subset of the Float Index that focuses solely on floating shares of sensitive companies. The index registered a commendable gain of 10.15 points or 8.61%, closing at 128.02. This surge highlights the captivating performance of sensitive scrips, underscoring the market's preference for stocks that exhibit solid growth potential and market sensitivity.

A) Banking Index

The Banking Sub-Index, a reliable indicator of the banking sector's performance, experienced a modest yet significant increase of 27.65 points or 2.31%, reaching 1,226.96. This growth reflects the steady progress and resilience displayed by the banking industry, bolstered by prudent management practices and the sector's crucial role in supporting economic development. Despite the NEPSE's growth of 12.37% in the past 30 days, commercial banks have shown relatively slower progress with a modest increase of only 2.31%. This growth rate falls behind the performance of other sectors in the market.

Among the 20 listed commercial banks, there are a few standout performers that have achieved significant gains. Let's take a closer look at the top 5 commercial banks that have exhibited the highest growth during this period: 

1. SBI (Nepal SBI Bank Limited) displayed a remarkable performance with its closing price increasing from Rs. 319.3 to 352, reflecting a gain of 32.7 points or 10.24%. This substantial growth underscores the bank's strong position in the market and its ability to attract investors.

2. SANIMA (Sanima Bank Limited) also demonstrated impressive growth, as its closing price rose from Rs. 237.9 to 261, representing a gain of 23.1 points or 9.71%. The bank's positive performance reflects its strategic initiatives and successful market positioning.

3. NICA (NIC Asia Bank Limited) showcased a significant surge during this period, with its closing price increasing from Rs. 703 to 768.5, indicating a gain of 65.5 points or 9.32%. The bank's exceptional growth highlights its strong financial position and market leadership.

4. EBL (Everest Bank Limited) witnessed notable gains, with its closing price rising from Rs. 525.8 to 554.5, reflecting an increase of 28.7 points or 5.46%. The bank's positive performance signifies its ability to adapt to market dynamics and capitalize on emerging opportunities.

5. MBL (Machhapuchchhre Bank Limited) displayed steady growth, as its closing price increased from Rs. 225 to 234, resulting in a gain of 9 points or 4%. This growth demonstrates the bank's ability to navigate market challenges and maintain stability.

B) Development Bank Index

The Development Bank Index, which witnessed a meteoric rise, soared by an impressive 389.45 points or 11.49% to close at a remarkable 3,778.04. The surge in the development bank sector showcases the industry's resilience and the banks' relentless pursuit of financing economic growth and facilitating infrastructure development across the country. Out of 16 listed development banks, the five top-performing development banks are as follows:

1. LBBL (Lumbini Bikas Bank Limited) emerged as the top-performing company in the development bank sector, with its closing price increasing from Rs. 328 to 394.9, reflecting a gain of 66.9 points or 20.4%. This significant surge demonstrates the bank's strong market position and its ability to attract investor interest.

2. GRDBL (Green Development Bank Limited) displayed impressive growth, as its closing price rose from Rs. 245.5 to 291, indicating a gain of 45.5 points or 18.53%. The bank's strong performance highlights its strategic initiatives and effective management.

3. EDBL (Excel Development Bank Limited) showcased notable gains, with its closing price increasing from Rs. 271 to 318.1, resulting in a gain of 47.1 points or 17.38%. The bank's positive growth reflects its ability to capitalize on market opportunities and deliver value to its shareholders.

4. SAPDBL (Saptakoshi Development Bank Limited) witnessed significant growth, as its closing price rose from Rs. 219 to 254.8, representing a gain of 35.8 points or 16.35%. The bank's upward trajectory underscores its ability to navigate market dynamics and deliver favorable results.

5. SADBL (Shangrila Development Bank Limited) demonstrated solid performance, with its closing price increasing from 277 to 320, reflecting a gain of 43 points or 15.52%. The bank's positive growth showcases its resilience and ability to adapt to changing market conditions.

C) Finance Index

Another vibrant segment of the market, the Finance Index, experienced a surge that left investors exhilarated. The index displayed a remarkable growth of 319.65 points or 20.83%, reaching an impressive level of 1,853.96. This remarkable ascent in the finance sector reveals the sector's pivotal role in fostering economic growth and providing essential financial services to individuals and businesses alike. In the finance sector, a group of remarkable companies emerged as the top gainers, showcasing their resilience and growth potential in the dynamic Nepalese market. Among the 15 listed finance companies, the top five performers in terms of financial gains over the past 30 days are:

1. PROFL (Progressive Finance Limited): Leading the pack was PROFL, which experienced a staggering surge in its closing price from 280 to 432, marking a substantial change of 152 and an impressive percentage increase of 54.29%. The company's exceptional performance highlights its strong fundamentals and strategic vision, attracting significant investor interest.

2. RLFL (Reliance Finance Limited): Closely following PROFL was RLFL, another standout performer in the finance sector. With a closing price jump from 276.8 to 365, RLFL witnessed a remarkable change of 88.2, translating to a notable percentage increase of 31.86%. The company's growth trajectory reflects its ability to capitalize on market opportunities and deliver consistent value to its stakeholders.

3. CFCL (Central Finance Limited): CFCL, a prominent player in the finance sector, also demonstrated impressive gains during the period. Its closing price surged from 287 to 369.9, registering a significant change of 82.9 and an impressive percentage increase of 28.89%. CFCL's performance underscores its strong market presence and its adeptness in navigating the ever-evolving financial landscape.

4. GMFIL (Guheswori Merchant Banking & Finance Limited): GMFIL, a noteworthy finance company, showcased robust growth, witnessing a substantial increase in its closing price from 285 to 364. With a change of 79 and a percentage increase of 27.72%, GMFIL demonstrated its resilience and its ability to capitalize on market trends, attracting investors' attention.

5. MFIL (Manjushree Finance Limited): Rounding out the top five gaining companies in the finance sector was MFIL, which exhibited an impressive surge in its closing price. From 418 to 530, MFIL witnessed a remarkable change of 112 and a notable percentage increase of 26.79%. The company's performance reflects its strong business fundamentals and its ability to generate sustainable returns in a competitive market.

D) Hotels and Tourism Index

The Hotels and Tourism sector emerged as a phoenix rising from the ashes, undergoing a renaissance of growth and prosperity. The index skyrocketed, defying all expectations, as it soared by an astonishing 1,797.22 points or 48.18% to an unprecedented level of 5,527.41. This surge not only reflects the sector's remarkable recovery from the adverse effects of the pandemic but also showcases the resilience and attractiveness of Nepal as a tourist destination. With Nepal's increasing popularity as a tourist destination, the country's hotel industry has witnessed significant growth, resulting in notable gains for several companies. Among the six listed hotels, these top three companies have experienced substantial gains over the past 30 days:

1) City Hotels Limited (CITY), a newly listed company in the hotel and tourism sector, created waves in the market with its remarkable performance. In just a short period of time, CITY experienced an astonishing surge in its closing price from Rs. 111.1 to Rs.462.7. This incredible change of 351.6 points translates to an astounding percentage increase of 316.47%. The significant rise in CITY's stock price can be attributed to the excitement surrounding its listing, as investors eagerly seized the opportunity to invest in this promising company.

2) SHL (Soaltee Hotel Limited): Another standout performer in the hotel and tourism sector was SHL. With a closing price jump from 286 to 483, SHL witnessed an impressive change of 197, translating to a significant percentage increase of 68.88%. 

3) TRH (Taragaon Regency Hotel Limited) is another notable company in the hotel and tourism sector, which also showcased robust growth during the period. Its closing price surged from 546.4 to 781, registering an impressive change of 234.6 and a notable percentage increase of 42.94%. This surge is indicative of the country's efforts to promote tourism and the growing recognition of Nepal as an ideal destination for adventure seekers, nature enthusiasts, and cultural explorers.

E) Hydropower Index

While the Nepalese Stock Market experienced a commendable growth rate of 12.37% in the past 30 days, the performance of the Hydropower Index, which tracks the performance of hydroelectric power companies, fell short with a growth rate of 5.48%. This growth rate, although positive, remained in the single-digit percentage range. In contrast, other sectors in the market witnessed rapid growth during the same period. The hydropower index rose by 127.38 points, closing at an impressive 2,450.78. This surge underscores the significance of renewable energy and its pivotal role in Nepal's quest for sustainable development. 

In the cohort of 77 listed hydropower companies, the top five performers in terms of gains over the past 30 days were Shuvam Power Limited (SPL), Mountain Energy Nepal Limited (MEN), Bhugol Energy Development Company Limited (BEDC), Makar Jitumaya Suri Hydropower Company Limited (MAKAR), and Sanima Middle Tamor Hydropower Limited (TAMOR).

The leading hydropower company was SPL, which experienced a notable increase in its closing price from Rs. 547 to Rs. 779, resulting in a change of Rs. 232 and a percentage increase of 42.41%. MEN followed closely, with a closing price surge from Rs. 730 to Rs. 936, reflecting a change of Rs. 206 and a percentage increase of 28.22%. BEDC, MAKAR, and TAMOR also demonstrated impressive growth, registering gains of 21.99%, 19.88%, and 16.28% respectively. These companies' performance reflects the growing importance of the hydropower sector in Nepal's energy landscape and the market's confidence in their potential for sustainable development.

F) Investment Index

Meanwhile, the Investment Index experienced a remarkable surge, growing by 8.77 points or 13.58%, reaching a notable level of 73.33. This surge signifies the growing confidence of investors in various investment opportunities available in the market, highlighting the diverse range of avenues for capital appreciation. In the investment sector, all 6 listed companies demonstrated impressive gains during the specified period. However, CIT led the way with a significant increase in its closing price, surging from 2,111.00 to 2,613.00, resulting in a substantial change of Rs. 502 and a percentage increase of 23.78%. CHDC closely followed with notable growth from Rs. 740 to 900.1, marking a change of 160.1 and a percentage increase of 21.64%. Whereas, NRN also showcased positive performance, with its closing price rising from Rs. 449 to 528, reflecting a change of 79 and a percentage increase of 17.59%. 

G) Life Insurance Index

The Life Insurance sector, synonymous with stability and long-term financial planning, exhibited an extraordinary performance, witnessing a substantial surge. The index soared by a remarkable 3,147.92 points or 33.41%, closing at an astonishing 12,569.92. This surge reflects the sector's pivotal role in safeguarding individuals' financial futures, as well as its ability to generate sustainable returns for shareholders. In the vibrant landscape of the Nepalese stock market, the life insurance sector has witnessed significant gains over the past 30 days. Among the 9 listed life insurance companies, the top five performers in terms of gains are as follows:

1.  PLI (Prabhu Life Insurance) emerged as the top gainer in the life insurance sector, witnessing a remarkable surge in its closing price. From June 1 to July 2, PLI's closing price skyrocketed from 401 to 634, marking an impressive change of 233 points and an astounding percentage increase of 58.1%. This significant surge in PLI's stock price indicates the market's confidence in the company's performance and the growing demand for life insurance services in Nepal.

2. SRLI (Sanima Reliance Life Insurance) also displayed robust growth during the period, positioning itself as a strong contender in the sector. Its closing price soared from Rs. 390.1 to 590, reflecting a notable change of 199.9 and a remarkable percentage increase of 51.24%. This exceptional performance is a testament to SRLI's strategic positioning in the market and its ability to cater to the evolving needs of customers seeking reliable life insurance coverage.

3. SJLIC (SuryaJyoti Life Insurance Company) made significant strides in the life insurance sector, delivering promising results during the specified period. Its closing price rose from Rs. 425 to 627, showcasing an impressive change of 202 points and a substantial percentage increase of 47.53%. SJLIC's strong performance can be attributed to its customer-centric approach and effective risk management strategies, allowing the company to capitalize on the growing demand for life insurance products and services.

4. ALICL (Asian Life Insurance Company) demonstrated noteworthy growth, solidifying its position as a key player in the life insurance sector. With its closing price surging from Rs. 551.1 to 775, ALICL experienced a considerable change of 223.9 points and a notable percentage increase of 40.63%. This remarkable performance reflects ALICL's ability to attract and retain customers, offering comprehensive life insurance solutions that cater to their financial security needs.

5. LICN (Life Insurance Corporation Nepal) showcased strong performance, positioning itself among the top gainers in the life insurance sector. Its closing price witnessed a significant surge from Rs. 1,272.00 to 1,648.00, representing a substantial change of 376 points and a notable percentage increase of 29.56%. LICN's robust growth can be attributed to its established reputation, a wide range of insurance offerings, and efficient customer service, making it a trusted choice among individuals seeking life insurance coverage.

H) Manufacturing and Processing

Furthermore, the Manufacturing and Processing sector showcased robust growth, with the index surging by 741.10 points or 15.51% to reach an impressive 5,517.91. This remarkable ascent underscores the sector's pivotal role in Nepal's industrialization drive and its contribution to job creation and economic growth. The manufacturing and processing sector witnessed notable gains during the specified period. Although there are only seven listed companies in this sector, two companies stood out for their impressive performance:

SHIVM (Shivam Cement) emerged as the top gainer, experiencing a significant increase in its closing price. From June 1 to July 2, SHIVM's closing price rose from Rs. 452 to 607, marking a substantial change of Rs. 155 and an impressive percentage increase of 34.29%. This remarkable growth reflects SHIVM's strong market presence and its ability to meet the growing demand for cement in Nepal's construction industry.

HDL (Himalayan Distillery Limited) also showcased a solid performance, positioning itself as a key player in the manufacturing and processing sector. Its closing price surged from Rs.1,896.00 to 2,260.00, reflecting a notable change of Rs. 364 and a percentage increase of 19.2%. HDL's exceptional growth can be attributed to its strong brand reputation, quality products, and effective marketing strategies in the alcoholic beverage industry. 

I) Microfinance

The Microfinance Index, an important indicator of the microfinance sector's performance, witnessed notable growth, increasing by 556.16 points or 16.27% to close at an impressive 3,975.06. This growth signifies the sector's crucial role in providing financial services to underprivileged communities, fostering financial inclusion, and supporting entrepreneurship and livelihood development. In the highly competitive landscape of microfinance companies in Nepal, these five companies have managed to rise above the total 60 companies and emerge as top performers:

BPW (BPW Laghubitta Bittiya Sanstha) emerged as the top gainer in the microfinance sector, displaying an extraordinary surge in its closing price. From June 1 to July 2, BPW's closing price skyrocketed from 379.8 to 1,413.50, resulting in a remarkable change of 1,033.70 and an astonishing percentage increase of 272.17%. 

CLBSL (Civil Laghubitta Bittiya Sanstha) also experienced substantial growth during the specified period, positioning itself as a key player in the microfinance sector. Its closing price surged from 556 to 747.8, reflecting a notable change of 191.8 and a significant percentage increase of 34.5%. 

MLBBL (Mithila Laghubitta Bittiya Sanstha) displayed robust growth, solidifying its position among the top gainers in the microfinance sector. From June 1 to July 2, MLBBL's closing price rose from 721 to 969, showcasing a substantial change of 248 and a notable percentage increase of 34.4%. 

FMDBL (First Microfinance Development Bank) showcased significant progress, positioning itself as a prominent player in the microfinance sector. With its closing price surging from 529 to 701, FMDBL experienced a notable change of 172 and a percentage increase of 32.51%. 

SLBSL (Samudayik Laghubitta Bittiya Sanstha Limited) demonstrated noteworthy growth, solidifying its position among the top gainers in the microfinance sector. Its closing price witnessed a significant surge from 773.00 to 996.00, representing a substantial change of 223 and a notable percentage increase of 28.85%. 

J) Mutual Fund

The Mutual Fund sector, known for its diversified investment portfolios and professional management, experienced steady growth during the period. The index rose by 0.95 points or 6.98%, reaching a notable level of 14.57. This growth demonstrates investors' confidence in the sector's ability to generate stable returns and provide exposure to a broad range of assets. 

NMB Sulav Investment Fund - II (NSIF2), Laxmi Unnati Kosh (LUK), and Laxmi Equity Fund (LEMF) emerged as the top three gainers in the mutual fund sector, exhibiting strong performance during the specified period. NSIF2 witnessed a notable increase in its closing price from 8.21 to 9.60, reflecting a change of 1.39 and a percentage gain of 16.93%. LUK displayed significant growth, with its closing price rising from 8.12 to 9.41, representing a change of 1.29 and a percentage increase of 15.89%.

LEMF also showcased positive momentum, as its closing price increased from 8.29 to 9.5, resulting in a change of 1.21 and a percentage gain of 14.6%. These mutual funds' robust performance can be attributed to their effective investment strategies, diversification, and favorable market conditions, offering investors attractive returns and opportunities for wealth accumulation.

K) Non-Life Insurance

The Non-Life Insurance sector witnessed an astounding surge, with the index gaining an impressive 2,364.08 points or 26.38%, reaching an all-time high of 11,326.59. This surge highlights the sector's resilience and its ability to adapt to evolving market conditions, as well as the crucial role played by insurance companies in protecting individuals and businesses against various risks. In the non-life insurance sector, out of 13 listed non-life insurance companies, these five companies have emerged as the top gainers, showcasing impressive performance over the specified period:

IGI Prudential Insurance Limited (IGI) witnessed a significant surge in its closing price from Rs. 370.82 to 588.00, reflecting a substantial change of 217.18 and an impressive percentage gain of 58.57% followed by Nepal Insurance Company Limited (NICL) with its closing price increasing from Rs. 552 to 848, representing a substantial change of Rs. 296 and an impressive percentage gain of 53.62%.

Prabhu Insurance Company Limited (PRIN) also showcased impressive momentum, as its closing price rose from 475 to 715, resulting in a significant change of 240 and a notable percentage gain of 50.53%. Similarly, Sanima GIC Insurance Limited (SGIC) exhibited strong performance, with its closing price increasing from 438 to 652, reflecting a change of 214 and a notable percentage gain of 48.86%.

Likewise, NLG Insurance Company Limited (NLG) experienced substantial growth, with its closing price rising from 603.00 to 885.10, representing a change of 282.1 and a significant percentage gain of 46.78%.

L) Others

The Others Index, encompassing sectors not covered by specific indices, witnessed an impressive increase of 216.18 points or 16.35%, reaching 1,538.53. This growth signifies the diversity and breadth of opportunities available in the Nepalese market, with companies from various sectors contributing to the market's overall performance. 

Despite being the only two companies in the Others Index, Nepal Doorsanchar Company Limited (NTC), and Nepal Reinsurance Company Limited (NRIC) have showcased remarkable gains during the specified period. NTC experienced an increase in its closing price from Rs. 764.5 to 889, reflecting a substantial change of 124.5 and a notable percentage gain of 16.29%. Similarly, NRIC witnessed a rise in its closing price from Rs 670 to 750.9, resulting in a change of 80.9 and a significant percentage gain of 12.07%. 

M) Trading

Lastly, the Trading Index, reflecting the performance of trading companies, experienced an exceptional surge, closing at an impressive 2,588.12 after gaining 451.92 points or 21.16%. This surge reflects the pivotal role played by trading companies in facilitating market liquidity and providing investors with access to a wide range of securities. 

In the trading sector, two prominent companies, Salt Trading Company Limited (STC) and Bishal Bazar Company Limited (BBC), have displayed notable performance within the given timeframe. STC witnessed a substantial increase in its closing price from 3,880.00 to 4,795.00, indicating a significant change of 915. This surge translates to an impressive percentage gain of 23.58%. On the other hand, BBC experienced a modest rise in its closing price from 3,160.00 to 3,430.00, representing a change of 270 and a percentage gain of 8.54%. Both STC and BBC have demonstrated positive growth in the trading sector, reflecting their resilience and potential in the market.

As the Nepalese stock market concludes this remarkable 30-day period of unprecedented growth, investors and analysts remain optimistic about its future prospects. The surge in all major indices reflects the market's resilience, the dynamism of the Nepalese economy, and the unwavering confidence of market participants. As investors eagerly look forward to the next chapter in the market's journey, the Nepalese stock market stands tall, ready to embark on new heights and embrace the opportunities that lie ahead.

Also Read: Why is Nepal's Stock Market Rising Recently? A Confluence of Factors Ignites Investor Optimism

Authored by Praisha Shrestha