Nepal Stock Market Crashes, Ups and Downs; Nepal Stock Update's Survey.

Market Crash

The History of stock market is not long in Nepal. Nepal Stock Exchange (NEPSE) is only one stock exchange in Nepal opened its trading floor in the beginning of 1994. Within a short period since its inception, the NEPSE index witnessed significant ups and downs. If we analyze the NEPSE data that span from August 2000 to July 2014, radical vicissitudes in stock index is seen.  Earlier on August 31, 2008, the NEPSE index had reached  its all-time high of 1175 points where as on June 15, 2011, the NEPSE index recorded low of 292 points. On July 14, 2014, the benchmark index reached 1036.10

Table 1: Glimpse of the Nepalese Stock Market
S.N	DATE	NEPSE INDEX
1	2008-08-31	1175
2	2011-06-15	292
3	2014-07-14	1036.1

Most of the experts suggest that the faster the stock has climbed, the quicker it will fall. In investing, as in hare-and-tortoise races, slow and steady gets the price. The easier information arrives, the less valuable it is. Good investment decisions are hard work, undertaken and arrived at one at a time.

A Stock market crash has no fixed definition in terms of percentage loss or duration, which means they can occur in a single day, or over the course of weeks, months or even years.  If we observed world's greatest market crash history, there were a number of crashes we found among them Wall Street Crash of 1929, 1971 Brazillian markets crash, Souk Al-Manakh Stock market crash 1982 were some examples.

If we analyze the NEPSE data of the year 2015, we found a significant numbers of ups and downs. In the beginning of the year i.e January 2015, NEPSE index was at 902 points while market opened. On 20^th August, NEPSE recorded to hit an all-time high of 1221.30 points, closed at 1200.92 on the same day. NEPSE rested at 1151.38 points in 31^st December i.e. at the end of the year.

Table 2: Glimpse of the Nepalese Stock Market
S.N	DATE	NEPSE INDEX
1	2015-01-01	902
2	2015-08-20	1200.92
3	2015-12-31	1151.38

Major highlights of Nepalese Stock Market in the Year 2015:

Nepal Stock Update observed the major highlights of Nepalese Stock Market in the year 2015. Among them, followings are some major highlights.

1.  Earth Quake (25^th April & May 12) impact: First time in history, NEPSE was closed for continue 28 days. NEPSE dropped by 101 points to rest in 938 points after opening of the market after earthquake.
2. Impact of monetary policy: New monetary policy with the directive of compulsory increase of paid up capital, NEPSE index raised radically by some points. This compulsory made regulations increased expectations of investors to get bonus and right shares to meet the deadline which also helped NEPSE index to jump to 1221 points which is highest recorded in the year 2015
3.  Impact of Rewat Bahadur Karki's appointment in SEBON: NEPSE index raised by some points after his appointment in SEBON expecting to get some well improvement of the capital market. After his appointment, SEBON influenced the market by minimizing expenses to issue IPO, declaration to make citizen fund to institutional investors, management of broker commission, advancement of investment of stock market etc.
4. Impact of Madhesh movement and blockade: NEPSE index decreased by some extent due to the impact of Madhesh movement and blockade. Nepalese economy is estimated to lose more than 15 trillion during this period.
5. Dematerialization of share: Investors feel more comfortable after dematerialization of share.
6. Impact of market depth: Beginning of market depth is hoped to be a milestone for the Nepalese capital market.
7.  Attraction in Microfinance and Insurance: Majority of the investor directed  their investment towards microfinance and insurance at the end of the year.
8. Issuance of IPO and FPO: Flow of IPO and FPOs also affected market which is well accepted by the investors.
9. Clearance of BT Share: Directive published to clear shares also influences the market.
10. Impact of Online and Offline news portal: Different financial newspaper as well as online financial news portal fully covered each and every news regarding share market even a small change in capital market.

NEPSE; Rise & Fall during the year 2016 (Up to 26^th October, 2016)

Panic sell-off pushed NEPSE Index down by a whopping 88.81 points on Monday, 2016-08-08, which is recorded as the highest fall in the year 2016. After the benchmark index plunged 5% by midday, NEPSE triggered circuit breaker, suspending trading for the rest of the day. As the market plunged, SEBON on Monday was forced to issue two statements. In its first statement, investors were requested to calm down and not to lose confidence. SEBON issued second statement in which it stated that the probe committee has been scrapped. NEPSE jumped 84.51 points on Tuesday, 2016-08-09 (Following day), ending an eight-day losing streak which is recorded as the highest rise in NEPSE index in the year 2016. Some other NEPSE movements are listed in the following table.

Table 3; NEPSE Movement- Ups & Downs during the year 2016
S.N	DATE	NEPSE	ABSOLUTE CHANGE	%
1	2016-06-05	1483.14	-34.98	-2.30417
2	2016-06-06	1516.8	33.66	2.26951
3	2016-06-27	1721.77	36.6	2.17189
4	2016-07-18	1786.57	40.83	2.33884
5	2016-07-25	1838.49	39.66	2.20477
6	2016-08-04	1768.6	-45.12	-2.4877
7	2016-08-08	1675.91	-88.81	-5.03253
8	2016-08-09	1760.42	84.51	5.03253
9	2016-08-14	1733.93	-40.94	-2.30665
10	2016-08-15	1694.81	-39.12	-2.25615
11	2016-08-22	1683.12	-39.31	-2.28224
12	2016-08-24	1730.62	48.76	2.89917
13	2016-09-25	1730.64	-36.27	-2.05274

First Quarter Report 2073/74

First Quarter Report; Nepal Stock Update

Quarterly reports are often an important time for publicly traded companies because the earnings report may significantly affect the value of a company's stock. Stock value may increase or decrease according to the companies' good or poor quarter report. Mutual Fund, Investors and analysts often use data from different quarters to make comparisons and evaluate trends. They make buy or sell decision after analysis of reports published. Stock prices fluctuate wildly everywhere on any stock market when the quarterly earnings report is released.

It is time for publishing first quarter (Q1) report of any financial institutions to report their performance. By analyzing quarterly reports, investors can begin to gauge the financial health of the company and determine whether it deserves their investment. 

Nepal Stock Update will regularly update the reports published by publicly traded companies to aware the investors about the companies' performance to determine if the company is consistently performing well.

Table 1: First Quarter Report; Nepal Stock Update

	Q1 Report	Banks	28	Finance	22	Insurance	21	Hotel	3
	Total No.	Dev Bank	52	Microfinance	30	Hydro	7	Others	4
S.N	167	Paid Up Capital (Q1)	Reserve & Surplus	Net '000'  Profit (Q1)		Increase	EPS	Net Worth	NPL
	Name	Rs in '000'	Rs in '000'	This  Quarter	Corresponding Previous Q1	%	Annualized	Rs	%
	Banks	(Reports will be updated regularly after publication by concern Company)
1	NICA Bank	5,819,650.00	2,187,598.00	261,046.00	157,391.00	65.85	17.90	137.59	0.90
2	Citizen Bank	5,537,352.00	1,648,217.00	345,157.00	142,780.00	141.74	24.93	129.77	1.73
3	Sunrise Bank	5,301,396.00	1,096,387.00	253,116.00	117,802.00	114.86	19.10	120.68	1.69
4	Sanima Bank	5,278,997.00	1,015,647.00	271,622.00	176,844.00	53.59	20.19	119.24	0.05
5	Prime Commercial	3,705,262.26	2,006,816.57	251,058.14	220,598.01	13.80	27.10	154.16	1.32
6	Nabil Bank	6,183,540.00	6,207,884.00	798,365.00	653,509.00	22.16	50.67	200.00	1.09
7	Nepal Bangladesh B	4,011,759.00	2,252,594.00	225,019.00	124,892.00	80.17	22.00	156.00	1.16
8	NIB	8,706,612.00	8,321,939.00	740,800.00	423,834.00	74.78	34.03	195.58	0.71
9	Global IME Bank	7,150,550.00	1,976,100.00	420,933.00	313,565.00	34.24	23.55	127.64	1.71
10	NMB Bank	5,430,062.00	2,445,788.00	353,685.00	142,855.00	147.58	31.46	177.29	1.83
11	Siddhartha Bank	3,375,119.00	3,589,818.00	359,676.00	172,036.00	109.07	47.61	230.47	1.59
12	Nepal SBI Bank	3,883,736.00	3,448,238.00	354,178.00	302,071.00	17.24	36.48	188.79	0.11
13	Laxmi Bank	3,039,229.00	3,447,178.00	156,872.00	110,347.00	42.16	17.88	210.43	1.63
14	Prabhu Bank	5,881,402.00	554,723.00	282,464.00	261,701.00	7.93	4.80	109.43	7.54
15	Machhapuchhre Bank	4,666,430.00	920,723.00	246,951.00	173,124.00	42.64	21.17	119.73	0.54
16	NCC Bank	2,353,176.00	1,533,049.00	129,027.00	127,127.00	1.49	21.69	165.15	0.96
17	Mega Bank	3,240,575.00	2,609,600.00	146,947.00	84,348.00	74.21	17.80	134.31	1.08
18	BOKL	4,576,891.00	4,206,366.00	270,974.00	168,748.00	60.57	23.68	191.90	1.12
19	Everest Bank	2,742,604.00	6,383,001.00	513,421.00	263,703.00	94.69	77.13	339.73	0.36
20	Standard Chartered	2,812,426.00	5,110,514.00	349,424.00	345,245.00	1.21	49.70	281.71	0.31
21	ADBL	10,374,400.00	9,860,800.00	422,391.00	288,680.00	46.31	36.91	321.23	3.83
22	Nepal Bank	6,499,478.00	1,534,512.00	1,166,084.00	444,366.00	162.41	71.76	123.61	3.10
23	Himalayan Bank	4,964,357.00	4,813,778.00	438,461.00	322,785.00	35.83	38.98	217.33	1.17
24	Kumari Bank	2,699,167.00	1,501,686.00	137,436.00	48,682.00	182.31	31.49	155.64	1.26
25	Civil Bank	3,082,779.00	537,904.00	17,102.00	58,753.00	(70.89)	1.85	117.45	4.13
26	Janata Bank	2,060,000.00	682,665.00	63,978.00	57,553.00	11.16	12.42	133.14	1.18
27	Rastriya Banijya Bank	8,588,972.00	1,234,778.00	500,832.00	603,960.00	(17.07)			3.30
28	Century Bank	2,840,800.00	2,120,000.00	74,274.00	74,224.00	0.06	10.46	121.36	0.33
	Dev. Bank
1	Muktinath Bikas	838,400.00	603,100.00	997,000.00	685,000.00	45.39	38.33	157.54	0.18
2	Shangrila Dev Bank	1,070,000.00	428,500.00	44,300.00	31,900.00	38.87	16.52	139.92	0.84
3	Araniko Dev Bank	257,800.00	138,800.00	8,172.00	3,597.00	127.18	12.68	153.85	1.64
4	Triveni Dev Bank	820,000.00	444,200.00	24,900.00	13,800.00	80.43	12.16	154.18	2.13
5	Kanchan Dev Bank	198,000.00	94,600.00	8,140.00	7,657.00	6.30	16.44	147.78	2.90
6	Yeti Dev Bank	1,386,233.00	115,216.00	66,228.00	13,225.00	400.77	19.11	108.31	4.29
7	Mission Dev Bank	194,999.00	86,000.00	17,300.00	6,651.00	161.11	8.91		0.03
8	Progressive Dev Ba.	200,160.00	2,556.56	2,034.80	1,173.02	73.46	4.07	101.28	0.98
9	Hamro Bikas Bank	122,333.55	59,037.68	11,077.90	6,814.65	62.56	36.22	147.53	0.57
10	Garima Bikas Bank	1,000,000.00	500,000.00	46,800.00	29,100.00	60.82	17.33	146.89	0.66
11	Kailash Bikas	1,580,336.00	994,368.00	130,198.00	51,931.00	150.71	32.96	162.93	0.98
12	Miteri Dev Bank	274,600.00	102,600.00	25,800.00	16,600.00	55.42	37.64	137.37	0.12
13	Fewa Bikas Bank	995,000.00	552,200.00	62,200.00	46,500.00	33.76	25.02	155.50	1.59
14	Gandaki Bikas	538,500.00	249,300.00	32,500.00	20,100.00	61.69	24.20	146.29	0.50
15	Kasthamandap Dev	679,800.00	512,800.00	50,300.00	115,100.00	(56.29)	29.62	165.38	0.98
16	Excel Dev Bank	307,600.00	190,200.00	27,700.00	17,300.00	60.11	36.05	161.83	1.54
17	Sahayogi Bikas Bank	257,877.00	150,317.00	15,517.00	6,517.00	138.10	24.07	158.29	1.36
18	Shine Resunga Dev	1,102,800.00	262,900.00	67,880.00	46,200.00	46.92	24.62	123.84	0.24
19	Tinau Dev Bank	273,000.00	131,500.00	19,100.00	9,400.00	103.19	28.09	148.18	0.12
20	Jyoti Bikas Bank	987,026.00	307,208.00	43,576.00	16,954.00	157.02	17.66	131.12	2.13
21	Western Dev Bank	156,960.00	67,656.14	2,958.38	758.59	289.98	7.53	144.99	0.30
22	Cosmos Dev Bank	98,922.40	23,787.13	5,009.60	2,599.24	92.73	20.26	123.21	0.32
23	Bhargav Bikas	120,000.00	49,291.00	6,581.65	1,977.30	232.86	21.93	141.08	0.13
24	Country Dev Bank	356,928.00	72,108.82	407.77	207.30	96.70	0.45	120.19	4.42
25	Kalinchowk Dev Bank	106,000.00	100,000.00	1,888.77	3,158.80	(40.20)	1.78	116.33	3.16
26	Biratlaxmi Bikas Bank	425,358.00	425,358.00	9,865.00	13,039.00	(24.34)	9.28	143.67	2.53
27	Alpine Dev Bank	219,732.00	102,074.00	5,456.00	4,297.00	26.97	9.92	146.45	3.16
28	Dev Bikas Bank	881,088.00	308,816.00	50,695.00	39,153.00	29.47	23.01	135.05	3.44
29	Om Dev Bank	1,050,000.00	600,000.00	33,200.00	20,000.00	66.00	12.00	157.00
30	Manaslu Bikas Bank	183,500.00	68,100.00	13,311.00	7,226.00	82.00	7.25	137.11
31	Kakre Bihar Bikas	72,400.00	9,900.00	945.00	503.00	87.87	5.22	101.30
32	ID Bank	940,907.00	827,534.00	20,351.00	16,136.00	26.12	8.64	129.77	2.37
33	NIDC Dev Bank	415,823.40	3,028,651.71	21,006.59	40,873.71	(48.60)	20.21	828.35	15.72
34	Mahalaxmi Bikas Bank	1,156,223.00	578,344.00	20,430.00	19,939.00	2.46	7.07	150.02	4.40
35	Vibor Society Dev	1,815,004.00	68,504.00	33,424.00	30,382.00	10.01	19.41	103.77	2.31
36	Purnima Bikas Bank	201,708.72	114,986.55	17,176.63	10,879.57	57.87	34.06	157.01	0.38
37	Reliable Dev Bank	788,582.00	417,477.00	32,649.00	31,523.00	3.57	16.56	144.49	2.70
38	Siddhartha Dev Bank	1,419,168.00	288,774.00	57,649.00	34,470.00	67.24	16.25	120.35	3.21
39	Kamana Bikas Bank	661,605.00	327,655.00	35,828.00	21,263.00	68.49	21.66	149.52	1.92
40	Sajha Bikas Bank	100,000.00	(24,961.49)	5,037.65	(4,862.30)	203.60	5.04	79.53	4.63
41	Pacific Dev Bank	108,921.60	57,725.31	8,314.36	6,096.87	36.37	30.53	141.80	-
42	Sahara Bikas Bank	23,600.00	43,845.28	(2,370.22)	(2,832.28)	16.31	42.51	220.08	4.30
43	Tourism Dev Bank	786,944.00	327,782.00	42,479.00	28,626.00	48.39	21.59	141.65	1.96
44	Saptakosi Dev Bank	100,000.00	6,325.00	695.00	(543.00)	227.99	0.69	106.33	1.95
45	Professional Dev	240,350.00	65,634.09	2,734.02	4,128.73	(33.78)	1.14	127.31	1.42
46	Matribhumi Dev	55,660.00	20,244.76	1,522.16	1,165.32	30.62	2.73	136.37	2.18
47	Innovative Dev Bank	290,500.00	108,544.49	7,575.15	5,482.22	38.17	10.43	137.36	1.19
48	Supreme Dev Bank	933,365.00	389,429.00	35,397.00	31,870.00	11.06	7.58	141.72	0.52
49	Sewa Bikas Bank	425,555.20	263,895.48	26,472.47	12,426.37	113.03	24.88	162.01	0.41
50	International Dev	770,880.00	231,664.00	18,102.00	17,176.00	5.39	9.39	130.05	1.25
51	Bagmati Dev Bank	65,550.00	11,837.00	(16,824.00)	(2,108.00)	(698.10)	(29.26)	134.49	16.98
52	Ace Dev Bank	1,202,984.00	280,920.00	63,591.00	39,800.00	59.77			2.54
	Finance
1	Srijana Finance Ltd	211,673.31	163,834.24	14,715.51	3,487.46	321.95	27.80	177.39	1.18
2	Manjushree Finance	250,600.00	128,300.00	9,084.00	9,086.00	(0.02)	14.48	151.21	3.33
3	United Finance	643,800.00	176,884.00	10,220.00	3,963.00	157.88	6.35	127.47	0.99
4	Pokhara Finance	491,100.00	210,300.00	16,400.00	7,503.00	119.55	13.41	142.84	2.16
5	ICFC Finance	800,000.00	343,412.00	66,125.00	17,800.00	271.48	38.60	150.11	1.60
6	Namaste Bittiya	46,500.00	11,132.51	2,728.77	2,505.54	8.90	23.47	123.94	0.91
7	Everest Finance Ltd	157,459.80	22,951.86	(2,381.93)	1,372.68	(273.52)		114.58	0.84
8	Goodwill Finance	453,750.00	330,000.00	11,960.42	8,050.21	48.57	10.54	123.97	1.98
9	Gorkhas Finance	578,662.00	275,198.00	63,570.00	2,879.00	2,108.05	43.92	147.70	10.56
10	Guheshori M. Banking	293,739.00	144,608.00	14,203.00	10,614.00	33.81	19.34	149.23	0.52
11	Union Finance	176,585.00	(60,576.00)	3,982.00	(29,057.00)	113.70	2.25	43.82	17.64
12	Janaki Finance	310,781.00	245,299.14	17,542.57	1,685.68	940.68	5.64	178.92	2.69
13	Central Finance	246,757.00	157,953.00	2,992.00	(3,910.00)	176.52	1.21	150.11	1.14
14	Multipurpose Finance	37,030.00	32,200.00	950.80	829.30	14.65			6.97
15	Hama Merchant	221,000.00	200,000.00	3,448.00	1,680.00	105.23	6.24	133.17	1.15
16	Sagarmatha Finance	369,298.70	230,567.77	32,762.94	3,493.30	837.87	35.49	162.43	4.53
17	Bhaktapur Finance	211,000.00	16,778.79	2,359.09	2,615.59	(9.80)			5.46
18	Synergy Finance	474,409.00	(213,831.00)	5,329.00	5,502.00	(3.14)	1.12	20.00	23.51
19	Lumbini Finance	412,500.00	477,599.59	6,142.27	4,045.49	51.83	1.48	215.78	7.61
20	Jebil's Finance	256,850.00	68,773.00	3,978.00	2,873.00	38.46	1.55	126.78	7.05
21	Arun Finance	150,000.00	(123,875.00)	(1,041.00)	(4,414.00)	76.41	(0.69)	17.42	97.90
22	International Leasing	2,008,800.00	230,979.57	(52,790.94)	442,089.00	(111.94)			17.56
	Microfinance
1	First Microfinance	264,500.00	56,900.00	15,000.00	11,000.00	35.96	22.74	121.54	-
2	NMB Microfinance	86,300.00	31,000.00	9,485.00	4,587.00	106.78	43.94	135.94	1.04
3	Laxmi Microfinance	110,000.00	95,756.00	24,873.00	10,330.00	140.78	90.54	187.07	0.30
4	Womi Microfinance	46,800.00	18,300.00	5,267.00	4,707.00	11.89	58.52	181.02	1.94
5	Mithila Laghubitta	50,668.70	19,763.01	989.06	967.71	2.20	7.81	139.00	4.05
6	Mirmire Microfinance	20,000.00	23,126.43	3,139.57	2,766.29	13.49	62.69	215.00	1.27
7	Support Microfinance	42,000.00	(2,250.79)	422.02	(388.09)	208.74			-
8	RSDC Laghubitta	100,000.00	28,762.00	4,396.00	3,283.00	33.90	17.58		0.01
9	Nerude Laghubitta	180,000.00	221,053.04	14,195.00	8,131.00	74.57	31.54	222.81	0.95
10	Swabalamban Micro	312,300.00	747,500.00	70,330.00	72,119.00	(2.48)	90.06	339.00	0.65
11	Nirdhan Utthan	600,000.00	655,165.00	157,080.00	79,967.00	96.43	41.89	209.19	0.30
12	Naya Nepal Micro	20,000.00	12,752.00	1,198.00	(452.00)	365.04	23.96	163.76	6.67
13	Nagbeli Laghubitta	25,000.00	59,829.59	8,759.66	5,958.04	47.02	125.57	339.32	1.71
14	Mero Microfinance	200,000.00	118,311.34	21,426.61	15,819.56	35.44	42.84	159.16	2.02
15	Reliable Microfinance	56,500.00	25,485.56	3,754.62	4,348.25	(13.65)	26.58	145.12	1.46
16	Summit Microfinance	72,500.00	47,500.00	10,278.00	8,415.00	22.13	14.18	165.57	0.39
17	Mahila Sahayatra	110,000.00	23,743.44	1,753.79	1,657.75	5.79	6.38	122.00	2.67
18	Swarojgar Laghubitta	53,680.00	57,294.84	6,128.54	6,093.01	0.58	45.68	206.73	0.39
19	Diprox Laghubitta	257,923.84	512,862.64	69,347.11	43,152.67	60.70	26.89	298.84	0.74
20	Chhimek Laghubitta	595,748.00	865,704.00	126,653.00	105,400.00	20.16	85.04	244.31	0.08
21	Kisan Microfinance	20,000.00	6,492.53	4,198.31	4,122.42	1.84	20.99	132.46	0.74
22	Janautthan Samudayic	20,000.00	25,623.54	2,446.46	2,272.31	7.66			2.51
23	National Microfinance	100,000.00	66,524.00	18,391.00	8,330.00	120.78	73.56	166.52	0.76
24	I.L.F.C.O Micro	100,000.00	7,227.73	1,482.29	1,075.42	37.83	3.77	107.23	0.58
25	Vijaya Laghubitta	140,000.00	38,007.14	7,537.18	4,186.80	80.02	21.52	127.00	0.90
26	Sana Kisan Bikas	402,449.88	995,184.84	79,137.76	48,862.17	61.96	78.66	347.28	0.11
27	RMDC	692,120.00	1,144,014.36	39,872.54	37,624.67	5.97	23.04	265.29	0.01
28	Suryodaya Laghubitta	28,000.00	24,056.00	6,682.56	2,974.74	124.64			0.10
29	Kalika Nicrocredit	50,000.00	66,882.00	5,515.00	5,914.00	(6.74)	107.71	233.76	1.61
30	Nepal Grameen Bikas	557,500.00	45,885.00	30,126.00	10,974.00	174.52	21.62	108.23	5.70
	Others
A	Insurance	Declared 21 Companies report			See Individual Company report in separate post
B	Hydropower	Declared 7 Companies report			See Individual Company report in separate post
C	Hotel	Declared 3 Companies report			See Individual Company report in separate post
D	Capital Market	Declared 1 Companies report			See Individual Company report in separate post
E	Telecom	Declared 1 Companies report			See Individual Company report in separate post
F	Others	Declared 2 Companies report			See Individual Company report in separate post