After WAN connectivity, real-time information on cards

Kathmandu, November 23:

Nepal Stock Exchange (Nepse), in its bid to educate investors, here today organised an

investors’ awareness programme.

“Though Nepse has started trading through Automated Computerise Trading System from August 24,” Rewat Bahadur Karki, general manager of the Nepse said, “Nepse is trying its hard to make the new system more investor-friendly to modernise the capital market. “We are committed to make transactions more transparent and fair, and Nepse will not allow any foul play at the floor,” he added.

“Gone are the days of open-out cry, Nepse has entered into a new era of technology and investors can get the information of transactions on digital board, immediately at the Nepse,” Karki said, adding that after WAN connectivity, Nepse is preparing to take yet another giant leap forward by making available the investors with real- time information.

Pramod Bhattarai, manager and Harish Pokharel, senior IT officer at the Nepse made a presentation on how the new automation system works.

In the last one year the Nepse has been literally on fire. And the Securities Board of Nepal (SEBON) and Nepse are in recent days more cautious on the interest of investors.

According to a report of Nepal Rastra Bank (NRB), the year-on-year Nepse index has increased by 113.6 per cent to 817.1 points in mid-September 2007. The index was 382.6

a year ago.

The year-on-year market capitalisation has also increased by 133.3 per cent to Rs 225.3 billion in mid-September 2007. “Market capitalisation to GDP ratio increased to 31.3 per cent from 14.9 per cent a year ago,” stated the central bank’s report. “Of the total market capitalisation, bank and financial institutions, manufacturing and processing companies, hotels, business entities, and other groups including hydropower accounted for 83.2 per cent, 2.8 per cent, 1.6 per cent, 0.4 per cent, and 12 per cent respectively.”

The total paid up capital of the listed companies stood at Rs 22.14 billion in mid-September 2007, an increase of 9.3 per cent over the period of one year. “This increase was due to the additional listing of securities,” the report stated.

Total number of companies listed at the Nepse reached 138 in mid-September 2007, in comparison to that of 135 a year ago. Among the listed companies, 103 are bank

and financial institutions. 21 production and processing industries, four hotels, five business entities, three hydro power and two companies in other groups.

Monthly turnover to market capitalisation ratio remained at 0.64 per cent in mid-September 2007 in comparison to that of 0.36 per cent a year ago.

Similarly, the twelve-month rolling standard deviation reflecting an increased volatility in the stock market stood at 119.2 in mid-September 2007 in comparison to that of 37.8 a year ago.

According to the report, SEBON granted permission to issue ordinary shares of Rs 50 million to two insurance companies, and right shares of Rs 24 million to a finance company in the first two months of 2007-08.