- Hydropower dominates the share trading, this subgroup alone has a turnover of 23 billion 120 million

- As the economy is not running, investors’ confidence did not increase, the stock market did not rise: Dharmaraj Sapkota, former president, Stockbrokers Association of Nepal

As in the previous week, hydropower companies dominated the stock market this week as well. This week, the NEPSE index, which measures share trading, fell by 33.17 points, while the hydropower subgroup fell by 74.25 points. NEPSE, which closed at 3,626.47 points on Thursday last week, closed at 3,552.22 points this Thursday, according to NEPSE data.

This week, although the hydropower sub-group decreased, the highest turnover was of the hydropower company. According to NP Stock.com, this week only the hydropower company has a turnover of 23 billion 125 million rupees. The hydropower company topped the list of companies with turnover and gainers and losers. There are two development banks in the list of top 10 companies, while 8 are hydropower companies.

Share price of Panchkanya Mai Hydropower increased by 17.16%, Green Development Bank by 11.15%, Saptakoshi Development Bank by 10.85%, Chyangdi Hydropower by 10.14% and Joshi Hydropower by 9.40%. According to NEPSE, the increase of 9.03 percent of Panchthar Power Company, 8.18 percent of Khanikhola Hydropower, 8.10 percent of Varun Hydropower, 7.71 percent of Tehrathum Power, and 6.40 percent of Mailung Khola Hydropower.

Not only among the companies that gain share price, but also the ones that lose, the hydropower company dominates. The prices of Dordi Khola Hydropower decreased by 15.51%, Pure Energy by 13.21%, Geogeo Energy Development by 9.64%, Madhyabhotekoshi Hydropower by 8.60%, Rasuwagadhi Hydropower by 7.98% and Win Nepal Microfinance by 7.69%.

Universal Power Company’s 7.23, Himalaya Energy Development’s 6.76, Nepal Insurance’s 6.64 and Three Star Hydropower’s share price decreased by 6.39 percent. Investors in these companies lost their shares. A total of 863 million 62 thousand 464 shares were bought and sold this week, with a turnover of 35 billion 108 million rupees.

In recent days, NEPSE has not been able to hold the upward path. Therefore, the association of share investors has met the governor of Rashtra Bank, Vishwanath Paudel, and asked him to make a policy arrangement in the monetary policy that will have a positive effect on the capital market. In the

meeting, investors have submitted to the governor a demand to remove the personal share loan limit of 150 million, to amend the rule that microfinance cannot give more than 15 percent dividend, and to amend the limit for banks and financial institutions to invest in the stock market. Investors say that they got an assurance from Governor Paudel that their demands will be included in the upcoming monetary policy.

Dharmaraj Sapkota, the former president of the Stock Brokers Association of Nepal, says that the stock market has not gone up because the economy is not running well and investors have not grown in confidence. Two years ago, the government took a policy including banning imports to make the economy safe, the economy came to a ‘safe landing’, now when it is moving from the ‘safe zone’ and everything is positive, the market was looking for policy ease, but it did not come. This has increased the ‘frustration’ of investors.”He says that even though all the indicators are positive, the market has not grown because of the lack of ‘confidence’ among investors.

After a time, investors were trapped thinking that even if there is little profit, they should book, even if they come in capital, they should exit the market. This means that confidence has not come to investors,” he said. “All the foundations for the stock market to grow have been made. If other sectors of the economy were also operational, confidence would have come to the investors and the shares would have gone up.’ In terms of turnover, the hydropower company was ahead. According to NEPSE, hydropower is the highest among the top 10 companies.

Butwal Power Company 2 billion 608 million, Radhi Electricity Company 1 billion 899 million, Ngadi Group Power 1 billion 459 million, Sanima Mai Hydropower 1 billion 368 million and Singti Hydropower 1 billion 236 million.

Dordi Khola Jaldyut 9988 million, Himalayan Power Partner 9749 million, Universal Power Company 9259 million, NRN Infrastructure and Development 8825 million and Union Hydropower 792 million.

This week, with NEPSE falling by 1.26 percent, the size of the stock market (total market capitalization) has decreased by 55 billion 155 million rupees. The total market capitalization which was Rs 43 trillion 79 billion 90 crore last Thursday has remained at Rs 43 trillion 24 billion 88 crore on Thursday. Total market capitalization is calculated by multiplying the total listed shares by the same day’s share price. A decrease in capitalization means a decrease in the market value of the listed shares. On this basis, when the capitalization increases, it is analyzed as the value of the investor’s property increases.

Source: Kantipur