NATIONAL ECONOMY IN FY 2013/14

Transcription

1 NATIONAL ECONOMY IN FY 2013/14 Nepal s economic growth rate over the last decade has not been satisfactory. Although the growth rate recorded over 5.0 percent in fiscal years 2007/08 and 2013/14, growth in other fiscal years hovered around 3 to 4 percent. The average economic growth rate of the country in the past decade merely stood at 4.1 percent at basic prices. Likewise, the average growth rates of agriculture and non-agriculture sectors remained at 3.2 percent and 4.7 percent respectively in the previous decade. The average growth rates of industry and services sectors under the non-agriculture sector stood at 2.9 percent and 5.2 percent respectively in the last ten years. Analysis of sector-wise economic growth for the last decade reveals that though the growth rate of the services sector remained satisfactory, industry sector s growth rate did not record as such. Except for three fiscal years, services sector recorded a growth of over 5.0 percent in the other fiscal years. During this period, the growth rate of agriculture sector was much more influenced mainly by the climate factor and supply of seeds and fertilizers, while the industry sector under the non-agriculture sector was greatly influenced by the investment environment, labor problems, energy crisis, and prolonged political transition among others. The structure of Nepalese economy has been changing gradually. Contribution of agriculture and industry sectors to GDP showed a declining trend while that of services sector showed the opposite. From the sectoral perspective, the contribution of primary, secondary and tertiary sector contribution to nominal GDP are estimated to remain at 33.7 percent, 14.1 percent and 52.3 percent respectively. While classifying GDP into agriculture and non-agriculture sectors, contribution of the agriculture sector showed declining trend while the non-agriculture sector showed the opposite. Contribution of the agriculture sector to GDP at current prices stood at 37.4 percent in FY 2001/02, while it has come down to 33.1 percent in current fiscal year 2013/14. The ratio of consumption to GDP in current fiscal year climbed to 91.1 percent from 89.9 percent in the previous year. The shares of the private sector, government sector and non-profit institutions in final consumption expenditure in current fiscal year stood at 85.7 percent, 12.3 percent and 2.0 percent respectively. On private consumption side, shares of food items, nonfood items and services have been remained at 65.3 percent, 23.9 percent and 10.8 percent respectively. The share of gross domestic saving to GDP is estimated to drop by 1.2 percentage point compared to that of previous fiscal year and reaching to 8.9 percent in current fiscal year amounting to 1

2 Rs billion at current prices. The ratio of Gross National Saving to GDP is estimated to reach at 46.4 percent to Rs billion in the current fiscal year against the growth rate of 40.3 percent in the previous year. Nepal s Gross National Disposable Income has been increasing along with the increasing remittance inflow. Such income is estimated to grow by 20.4 percent to Rs. 2, billion in current fiscal year 2013/14, which is percent of GDP of the same fiscal year. Nepalese per capita GDP is estimated to have reached at Rs. 69,919 in current fiscal year, which is equivalent to US $703. The total expenditure of GoN had increased by 5.7 percent to Rs billion in FY 2012/13. This is estimated to increase by 44.2 percent to Rs billion in current fiscal year 2013/14. Of this, recurrent and capital expenditure is estimated to remain at Rs billion, and Rs billion respectively. Revenue mobilization that grew by 21.1 percent in FY 2012/13 is estimated to Rs billion in current fiscal year recording an increase of 19.7 percent. Similarly, tax revenue is estimated to increase by 21.4 percent to Rs billion in current fiscal year as compared with that of the previous fiscal year. Likewise, non-tax revenue is estimated to grow by 8.3 percent to Rs billion. The consumer price index based inflation rate that stood at 10.2 percent in the first eight months of c FY2012/13 has slightly dropped to 8.9 percent during the same period of current fiscal year 2013/14.Similarly, price growth index of food and beverage group in annualspoint-to-point remained at 10.8 percent during the first eight months ofcurrent fiscal year while that of nonfood items and services group has remained at 7.1 percent. The growth rates of price indices of these groups had stood at 11.3 percent and 9.3 percent respectively during the corresponding period of the previous fiscal year. 1.1 Consumption, Investment and Net Exports While analyzing from expenditure angle, GDP encompasses consumption, investment and net exports. From expenditure perspective, the share of consumption to GDP has remained significant. The share of consumption to GDP in FY 2001/02 at current prices that stood at 90.5 percent remained at 91.1 percent in FY 2013/14. Such share was 89.9 percent in the last fiscal year. of the private sector consumption that stood at 80.8 percent in FY 2001/02 slumped to 78.1 percent in the current fiscal year 2013/14. Such share had stood at 78.2 percent in the previous fiscal year. Likewise, share of the government consumption to GDP that stood at 8.4 percent in FY 2001/02 rose to 11.2 percent in the current fiscal year 2013/14. Likewise, notfor-profit making organization's consumption to GDP ratio has remained at 1.8 percent in the current fiscal year. On private consumption side, the share of food consumption is on the top. s of food, non-food and services items stood at 65.3 percent, 23.9 percent and 10.8 percent respectively in the current fiscal year. The shares of consumption expenditure of food, nonfood and services items to total consumption were 59.0 percent, 28.7 percent and 12.3 percent respectively in FY 2001/02. The consumption expenditure in food grains has continued to grow as a result of increase in consumption expenses, change in food habits and the increased price of food grains. 2

3 The share of gross capital formation to GDP that remained at 36.9 percent in the previous fiscal year is expected to stand at 37.1 percent in the current fiscal year. Such share stood at 20.2 percent in FY 2001/02. Gross fixed capital formation and change in stock are included in gross capital formation. The share of gross fixed capital formation to GDP that stood at 19.6 percent in FY 2001/02 is expected to reach 23.1 percent in the current fiscal year. Likewise, change in stock that had nominal share to GDP in FY 2001/02 has 13.9 percent in the current fiscal year. The share of change in stock to gross capital formation has been erratic since this is considered as a residual form of account in Nepal. The private sector has been contributing significantly to gross fixed capital formation. The private sector and the government sector are estimated to have contributed 79.8 percent and 20.2 percent respectively to gross fixed capital formation in the current fiscal year. The shares of private sector and government sector were 80.6 percent and 19.4 percent respectively in FY 2001/02. The share of net export to GDP has always been negative. Its share to GDP recorded negative by 28.2 percent in the current fiscal year. This had negative contribution of 10.8 percent in GDP in FY 2001/02. Due to notable contribution of import to GDP as compared to that of export of goods and services, the net export could not remain in favor of Nepal. 1.2 Income based Gross Domestic Product Income-based GDP includes employees salaries and allowances, taxes less subsidies on production and imports and operating surpluses/mixed income. The shares of compensation of employees, taxes less subsidies on production and import and operating surpluses /mixed income to current GDP are 41.7 percent, 10.7 percent and 47.6 percent respectively for FY 2013/14. Such shares stood at 44.9 percent, 6.3 percent and 48.8 percent respectively in 2001/ Savings The share of Gross Domestic Savings to GDP is estimated to decline by 1.2 percentage point and reaching to 8.9 percent in the current fiscal year as compared to the previous fiscal year. Such share stood at 9.5 percent in FY 2001/02. Likewise, such share had reached 14.0 percent in FY 2010/11. The Gross Domestic Saving is expected to total Rs billion at current prices in this fiscal year against such saving of Rs billion in the previous fiscal year. The share of Gross National Savings to GDP is estimated to stand at 46.4 percent in the current fiscal year while this had remained at 40.3 percent in the previous fiscal year. The Gross National Savingis estimated to remain at Rs billion in the current fiscal year while this figure was Rs billion last year. The share of gross national saving to GDP remained high owing mainly to the high remittance inflow. 1.4 Per Capita Income Per capita income of Nepalese people is growing gradually. Per capita GDP at current prices has grown by 12.4 percent to Rs. 69,919 which is equivalent to US dollar in FY 2013/14. Likewise, per capita gross national income also grew by 13.8 percent to Rs. 71,305, or equivalent to US dollar by this fiscal year. Per capita GDP and gross national income at constant prices of FY 2000/01 has increased by 4.1 percent and 5.4 percent to Rs. 26,600 and Rs. 27,762 respectively. 3

4 1.5 Gross National Disposable Income The Gross National Disposable Income of Nepal is on the rise trend along with expanded remittance inflow. Such income in the fiscal year 2013/14 is estimated to grow by 20.4 percent compared to the previous fiscal year totaling Rs billion at current prices, which is percent of GDP of the same fiscal year. 1.6 Global Competitiveness Index The Global Competitiveness Report for published by World Economic Forum states that Nepal s Global Competitiveness Index (GCI) ranking has improved for this year with 102 nd position out of 148 countries, which was 117 th out of 148 countries last year. The competitive index is calculated on the basis of different pillars like institutions, infrastructure, macroeconomic environment, labor market efficiency, financial market development, technological readiness etc. On these pillars, Nepali investment environment stood at 37 th position on macroeconomic environment, 98 th position on market size whereas the worst situation is for infrastructure development in which Nepal is at 132 nd position. Similarly, for technological readiness and labor efficiency, the position is 128 th and 114 th respectively. However, Nepal stood in 75 th position in the category of financial market development. The report shows that the macroeconomic environment for investment is good in Nepal and the local equity market is average efficient in channeling the fund but infrastructure situation, technological readiness and inefficient labor market are the main issues that should be addressed to make Nepali investment environment more competitive. As per the report, government instability and corruption are the most problematic factors for doing business in Nepal. Nepal s comparative ranking position on Financial Market Sophistication as per the report is presented in the following table. Score of Financial Market Sophistication to calculate Global Competitiveness Index S.No Particulars Global Competitiveness Index Rank Rank Rank Financing through local equity market Ease of access to loan Venture capital availability Protection of minority shareholders interests 5 Strength of investors protection Soundness of banks Regulation of securities exchanges Source: The Global Competitiveness Index and ( 4

5 Capital Market Nepalese Capital Market is growing and such growth can be seen from increased turnover, market capitalization and number of listed companies. There is bullish trend in the market this fiscal year. The activities of both primary and secondary market have been explained as follow: 2.1 Primary Market The total amount approved by Securities Board of Nepal (SEBON), regulator of capital market in Nepal, for the primary issuance to public on the FY 2013/14 was of Rs million from 46 numbers of approvals including ordinary shares, right shares, and debentures. This is an decrease of per cent in total amount compared to the previous fiscal year. Out of the total approvals for public issues, 18 companies get approvals for initial public offering (IPO) of Rs million. This is an decrease of percent on the amount when compared with the previous year. During the same period two companies get approval to issue debenture for the amount of Rs. 700 million. Similarly, total 26 approvals were provided to companies to issue right shares amounting to Rs million which is an increase of 7.72 per cent in amount when compared to the previous year. Primary approval issued by SEBON for the FY 2013/14 S. No Types of Securities FY 2012/13 FY 2013/14 No of Issues Rs. In Million No of Issues Rs. In Million 1 Debenture Ordinary Right Total Source: Following chart shows the capital mobilization trend for the last eight years in the primary market. 5

6 Source: Security Board of Nepal 2.2 Secondary Market Buoyed by political development, secondary market indicators have improved substantially during the fiscal year (FY2013/14). The indicators of secondary market like NEPSE Index, annual turnover, turnover to market capitalization and average price per share traded have been increased in the review period Turnover Turnover in secondary market is one of the important indicators of an economy. When compared with GDP, it shows the liquidity situation in the capital market. Since last few years, the trading volume along with other indicators were in decreasing trend however, during the FY 2013/14, the secondary turnover in Nepali capital market has also increased. During the FY 2013/14, the total trading volume has increased by percent to Rs billion. The amount was Rs billion last year. Similarly, during the review period, million numbers of shares have been traded which is an increase of per cent compared to a year earlier. Accordingly, numbers of transactions have increased by percent to It was last year. Significant increase in trading volume and number of shares and increase in number of transaction shows that bulk of shares has been traded in NEPSE during the year. As compared to previous year, there was slight increase in number of scrips traded during the year to 269. The total trading days were 230 during the year. The daily average turnover counts for Rs million in the review year; it was Rs million a year back and Rs million in the previous year. 6

7 Group-wise distribution of turnover The listed companies in NEPSE has been divided into nine sectors namely commercial banks, development banks, finance companies, hydropower companies, hotels, trading companies, manufacturing and processing companies, insurance companies and other companies. Furthermore, transaction details of promoter shares, mutual funds, preferred stocks are included in the table below. Group-wise distribution of turnover during the FY 2013/14 Group No. of s ('000) Amount (Rs. In Million) shares % of the total amount % of the total 1 Commercial Banks Development Bank Finance Hotels Hydro Power Insurance Manufacturing & Processing Mutual Fund Others Preferred Stock Promotor Tradings Total As usual, the volume of trading amount from the commercial banks group has the highest stake on the total trading volume. Excluding the trading of promoter shares of commercial banks, the group's trading volume was Rs billion, per cent of total traded amount. Similarly, the group of insurance companies and hydropower companies remained at second and third position with per cent and per cent of the total traded amount respectively. Similarly, the trading volume of development bank group and finance group has remained at fourth and fifth position with 8.70 percent and 2.14 percent respectively. Trading of Bond Both government and corporate bonds are listed in NEPSE. In FY 2013/14, from the 15 transactions, Rs million in amount has been traded. Low number of individual investors and differential income tax on interest for individuals and corporate companies are the major reasons for negligible transaction of bonds in Nepali capital market. Government and Corporate Bond Transaction during FY 2013/14 SN Name Quantity Rate Amount (NRs.) 1 8.5% Siddhartha Bank Debanture % Nabil Bank Debanture

8 3 8.0 % Laxmi Bank Debenture % Laxmi Bank Debenture % Laxmi Bank Debenture % Global Bank Debenture % Global Bank Debenture % Global Bank Debenture % Nepal Investment Bank Bond % Nepal Investment Bank Bond % Laxmi Bank Debenture % Nepal Investment Bank Bond % Laxmi Bank Debenture , % Nepal Investment Bank Bond , % Himalayan Bank Debenture , Total ,389, Trading of Mutual Fund Units As per the new regulation of Mutual Funds, two new mutual funds namely Siddhartha Growth Scheme-1 and Nabil Balance Fund-1 came into the market previous fiscal year. That has contributed for the significant increase in trading amount of mutual funds. During the fiscal year 2013/14, total of thousand units of mutual funds amounting Rs million traded. Trading of Preference Out of two preference shares listed at NEPSE, only one from Everest Bank Ltd, which has a convertible feature, has been traded during the FY 2013/14. The trading amount of preference shares has been million. The number of preference shares traded during the period was thousand. Trading of Promoter From 31 March 2008, NEPSE has arranged a different mechanism for the trading of promoters share of the listed banks and financial institution. Since then the trend of trading promoter shares was very encouraging. During the FY 2012/13, total thousands number of promoter shares traded in NEPSE amounting Rs million. The amount is an increase of 46.9 percent as compared to the previous year. The total of thousand shares amounting Rs million traded during the fiscal year 2013/14. Similarly, the traded amount of promoter shares is 8.26 per cent of the total traded volume during the period. 8

9 SN Ranking List of Top Five Companies (On the Basis of Amount) Amount Name of the Companies Rs. in million Chilime Hydropower Company Nepal Bank Nepal Bangladesh Bank National Life Insurance Co. Ltd Nepal Life Insurance Co. Ltd From the total 232 listed companies and out of top 10 companies on the basis of trading amount, 7 are from commercial banks. Chilime Hydropower Company ranked on the top position showing the trading amount of Rs million which is followed by Nepal Bank and Nepal Bangladesh Bank with Rs million and Rs million respectively. Similarly, National Life Insurance Company has ranked fourth position with Rs million and Nepal Life Insurance Company ranked fifth position with Rs million. On the basis of number of shares traded Nepal Bank held the first position with thousands of shares traded during the FY 2013/14. National Hydropower Company and Nepal Bangladesh Bank (Promoter share) remained at second and third position respectively with 9900 thousand and 6377 thousand number of shares. On the basis of number of transactions Mega Bank Nepal is on first place with transactions whereas Chilime Hydropower Company (20399), Sanima Mai Hydropower (18760), Agriculture Development Bank (17446) and Nepal Bangladehs Bank (14563) are on second, third, forth and fifth place. The trading amount of top ten companies is percent of the total trading amount and percent on the count of number of shares traded. It shows that NEPSE is more concentrated with few companies as almost half of the trading volume is contributed by the top ten companies in NEPSE Market Capitalization Market capitalization is calculated by multiplying closing price with outstanding shares of the company. It is considered as an important secondary market indicator as it is compared with the indicators of the economy. With other indicators, the market capitalization has also increased during the FY 2013/14. It has increased by percent and reached to Rs million as compared to the previous year. Increase in number of listed shares as well as price per share are the main cause for the increase in market capitalization. 9

10 Group-wise change in market capitalization (Rs. In million) Opening Closing Groups Market Cap % age of total Market Cap %age of total Change (%) Commercial Bank Hotel Others Hydropower Development Bank Manufacturing And Processing Insurance Finance Trading Total By reviewing the group-wise market capitalization composition, banks and insurance companies recorded the highest of the total market capitalization as usual. Commercial bank s group contributes about percent of the total market capitalization and it has increased by percent from the opening market capitalization for the FY 2013/14. The market capitalization of insurance group and development bank group has increased significantly by percent and percent respectively as compared to the opening figure. The above group-wise market capitalization shows that Nepalese capital market is highly concentrated on banking and financial institutions during the period. It can be clearly shown in the following figure. 10

11 Market capitalization-gdp ratio has increased to per cent this year which was per cent in the previous year. Similarly, the ratio of annual traded amount to market capitalization has increased to 7.30 percent from 4.29 per cent in the previous year. It shows that during the review period, number of traded shares hence the liquidity in the market has increased. The trend of market capitalization for last 5 years is presented in the following figure Indices Index is one of the most important indicators of secondary market which is also considered as barometer of country s economy. NEPSE index group consists of various indices and they are calculated on the basis of market capitalization. Out of them overall NEPSE index is the oldest one which is being calculated since Similarly the other indices are sensitive index, groupwise index and float index. 11

12 Overall NEPSE Index: NEPSE Index is calculated by considering all listed shares including that of promoter shares of all listed companies in NEPSE. As other secondary market indicators, NEPSE Index was in increasing trend during the FY 2013/14. The closing NEPSE index remains at and the highest point during the year was on 13 July 2014 and the lowest is recorded in 16 July 2013 of points. NEPSE index has increased by percent during the year. The mean index throughout the year is point and standard deviation is which show that NEPSE was more volatile during the year compared to last year when the standard deviation was of The trend of overall NEPSE index can be viewed from the following figure: Group-wise index: As more than 50 per cent of total market capitalization is concentrated on Commercial Banks, this group significantly affects the overall NEPSE index. The group-wise index of Commercial Bank group has increased by per cent and Development Banking group has increased by per cent from the opening figure whereas the group wise index for finance companies increased by percent compared to their corresponding opening index. The detail of group wise index with percentage change is presented in the following table: Change in group wise index in respect to starting of the FY 2013/14 S.No Group Opening Index Closing Index Change % 1 Commercial Banks Manufacturing & Processing Hotels Others

13 Sensitive Index: 5 Hydropower Trading Insurance Finance Development Banks Index calculated from the market capitalization of companies classified under group "A" is called sensitive index. Calculation of sensitive index was started from Jan-1, The index stood at points at the end of FY 2013/14 which is an increase of percent as compared with the closing sensitive index of last fiscal year. The sensitive index reached to at the highest point on 13 July 2014 and at lowest on 16 July 2013 during the fiscal year. The average sensitive index value during the period is and standard deviation is It shows that sensitive index fluctuation is less than the NEPSE Index. NEPSE Index in Last Ten Years Datewise NEPSE Index FY 2013/14 Jul 2013 Aug 2013 Sep 2013 Oct 2013 Nov 2013 Dec 2013 Jan Feb 2014 Mar 2014 Apr 2014 May 2014 June 2014 July

14 Listing Till Ashar end 2071, NEPSE has total 232 companies listed million shares having paid up value of Rs billion. Moreover 19 Corporate bonds with the value of Rs billion and 14 government bonds having the paid up value of Rs billion are also listed at NEPSE. Securities listed during FY2013/14 S.N. Type of Securities No of Companies No of Listed Securities 000 Paid up value (Rs. in millions) 1 Bonus Ordinary Right Corporate Bond Total Additional 21 companies enlisted their thousand ordinary shares having paid up value of Rs million. However, the listing of 21 new companies and merger of nineteen companies makes the total listed companies to 232. Out of 21 new companies, 15 represent development banks, 2 from finance companies, 2 from hydropower companies and the remaining 2 from commercial bank group. The details of newly listed companies during the fiscal year are presented on the following table. Ordinary shares listed during FY 2013/14 S.No Company Name No of s 000 Listed Amount (million) Listing Date 1 Sindhu Bikas Bank Ltd

15 2 Jhimruk Bikas Bank Ltd Mission Dev. Bank Ltd Mega Bank Ltd Nameste Bittiya Sansthan Ltd Jebils Finance Ltd Gaumukhi Bikas Bank Ltd Agriculture Development Bank Ltd Sana Kisan Bikas Bank Ltd Rural MicroFinance Dev. Center Ltd Hamro Bikas Bank Ltd Manaslu Bikas Bank Ltd Sanima Mai Hydropower Ltd Kalika MicroCredit Dev. Bank Ltd Naya Nepal Laghubitta Bikas Bank Ltd Matribhumi Bikas Bank Ltd Cosmos Dev. Bank Ltd Nepal Community Dev. Bank Ltd Mithila Laghubitta Bikas Bank Ltd Nagbeli Laghubitta Bikas Bank Ltd Century Commercial Bank Ltd Ridi Hydropower Dev. Co. Ltd Total As per legal provision, all banking and financial institutions as well as insurance companies must float public shares, which is the main cause to increase such companies in NEPSE. This year s trading data also shows that more than 70% of trading is concentrated on such companies. Moreover the condition set by Nepal Rastra Bank to increase the capital of banks and financial institutions, issuing of bonus and right shares by such institutions is regular since last few years. So, the number of listing such shares is also increasing in NEPSE. During the period 21 new companies has been listed in NEPSE, out of which only two are hydropower companies and others are all bank and finance companies and five new debentures have been listed. Likewise, 80 companies have listed their thousands number of bonus shares with paid up value of Rs million at NEPSE up to the end of FY 2013/14. Similarly, 19 companies listed their thousand right shares with paid up value of Rs. 100 each. With this, at the end of FY 2013/14, NEPSE has 29 companies listed under commercial bank group, 93 in development bank group, 54 companies in finance company group, 22 companies in insurance group, 18 companies in manufacturing and processing group, four each in hotel and trading group, six in hydropower and remaining two in other group. 15

16 Classifications of listed Companies As per the provision at listing byelaws, NEPSE has to classify it listed companies in group A. The company which is in profit for last three years, which has at least 1000 shareholders, which has at least paid up capital of Rs. 20 million, and having net worth of more than its paid up value and which has submitted its financial statements during the first six months of the fiscal year is classified under group A. In total 130 companies have fulfilled these criteria during the FY 2012/13 and classified under group A for the FY There were 120 companies under this category last year. Secondary Market Indicators Secondary Market Trades of last 5 years. Particulars Trading Amount (Rs in billion) No of shares traded ( 000) No of listed shares ( 000) Market capitalization (Rs in billion) Number of listed companies Index shares / listed shares 3.19% 2.54% 3.29% 5.10% 13.25% Trading amount / market cap 3.14% 2.06% 2.82% 4.18% 7.31% Trading amount / GDP 0.99% 0.48% 0.65% 1.30% 4.00% Market capitalization / GDP 31.33% 23.49% 23.41% 30.24% 54.81% Liquidity in the market, important function of stock exchange can be measured by the ratio of traded amount to GDP of the country and traded amount to market capitalization. The ratio of traded amount to market capitalization for the FY 2013/14 is 7.31 per cent which was 4.18 per cent in the preceding year. Similarly, the ratio of traded amount to GDP was 4.00 per cent which 16

17 is an significant increase from the previous year's 1.30 percent. It shows that the liquidity in the market has increased during the review period. So, from the above data and calculation, on an average, secondary market of Nepal is highly concentrated on bank and financial institutions. The data shows that percent of total market capitalization consists of largest ten companies and the concentration ratio of top ten companies on turnover volume is percent. It again shows that trading of securities concentrated on few companies. Moreover, the market is mainly dominated by banking and financial institutions. This may cause problem to construct efficient portfolio in the market and could be the main barrier for the institutional investors. However, during the FY 2013/14, most of the market indicators have revived from the previous decreasing trend. These are the problems in capital market which must be corrected for the future growth. For this companies from real sectors should be encouraged to list in secondary market and all potential investors should be provided with the facility to trade in the market. Bond market should be facilitated and investors should be provided with added facilities like margin trading, online trading, depository services etc. Further efforts to bring additional foreign capital from NRNs or foreign institutional investors will also help the smooth development of the market. 17

18 Nepal Stock Exchange Ltd. Annual Trading Summary ( 17-Jul-2011 To 16-Jul-2014 ) 17-Jul-2011 To 15-Jul units Amount 16-Jul-2012 To 15- Jul-2013 units Change 16-Jul-2013 To 16-Jul Change Amount in units Amount in Sr. No. Particulars ( 000) Rs. in Million ( 000) Rs. in Million % ( 000) Rs. in Million % 1 Turnover Commercial Banks Development Bank Finance Hotels Hydro Power Insurance Manufacturing And Processing Mutual Fund Others Preferred Stock Promotor Tradings OddLot + Manual Trade 15 Market Days 16 Average Daily Turnover 17 Number of Transactions 18 Number of Scripts 19 Number of Companies Listed 20 Total Paid up value of Listed s 21 Total Number of Listed Securities 22 Market Capitalization 23 Market Capitalization of Group-A 24 Total Paid up value of Group-A 25 NEPSE Index High 26 NEPSE Index Low 27 NEPSE Index Closing 28 NEPSE Sensitive Index High 29 NEPSE Sensitive Index Low

19 30 NEPSE Sensitive Index Closing 31 NEPSE Float Index High 32 NEPSE Float Index Low Government Bond Corporate Bond

20 Nepal Stock Exchange Ltd. Trades By Sector/Company ( 16-Jul-2013 To 16-Jul-2014 ) Commercial Banks Sr. No. Company Name Symbol Quantity Amount Rs. Trades High Low Close Average Trading Days (In Million) 1 Agriculture Development Bank ADBL , Bank of Kathmandu BOK , Civil Bank Ltd CBL Century Commercial Bank Ltd. Commerz and Trust Bank Nepal Ltd. Citizen Bank International CCBL CTBNL CZBIL , Everest Bank EBL , , Global IME Bank GBIME , Grand Bank Nepal GRAND Himalayan Bank HBL Janata Bank Nepal Ltd. JBNL Kumari Bank KBL , KIST Bank KIST Laxmi Bank LBL Lumbini Bank LUBL Machhapuchhre Bank MBL , Mega Bank Nepal Ltd. MEGA Nabil Bank NABIL , , Nepal Bangladesh Bank NBB , Nepal Bank NBL , Nepal Credit And Commercial Bank Nepal Investment Bank NCCB , NIB , NIC Asia Bank Ltd. NICA , NMB Bank NMB Prime Commercial Bank Ltd. PCBL Sanima Bank SANIMA , Nepal SBI Bank SBI , Siddhartha Bank SBL , Standard Chartered Bank SCB , , Sunrise Bank SRBL Group Total Development Bank Sr. No. Company Name Symbol Quantity Amount Rs. Trades High Low Close Average Trading Days (In Million) 31 Ace Development Bank Ltd. ACEDBL Alpine Development Bank ALDBL Apex Development Bank Ltd. APEX

21 Sr. No. Company Name Symbol Quantity Amount Rs. Trades High Low Close Average Trading Days (In Million) Araniko Development Bank Axis Development Bank ARDBL AXIS Bhrikuti Vikash Bank BBBL Bagmati Development Bank Ltd. BGDBL Bhargav Bikash Bank Ltd. BHBL Biratlaxmi Bikas Bank BLDBL Bright Development Bank Ltd BRTBL Bishwa Bikas Bank BSBL Business Universal Development Bank Ltd. Chhimek Laghubitta Bikas Bank City Development Bank Clean Energy Development Bank BUDBL CBBL , CDBL CEDBL Civic Development Bank Ltd CIVIC Country Development Bank Ltd. Corporate Development Bank Cosmos Development Bank Ltd. Diprox Development Bank CNDBL CORBL CSDBL DDBL , Excel Development Bank Ltd. EDBL First Micro Finance Development Bank Ltd. FMDBL Garima Bikas Bank GBBL Gandaki Bikas Bank GDBL Gaurishankar Development Bank Ltd. GSDBL Hamro Bikas Bank Ltd. HAMRO H & B Development Bank Ltd. HBDL Infrastructure Development Bank Ltd. Innovative Development Bank Ltd. International Development Bank Ltd IDBL INDB INDBL Jyoti Bikas Bank JBBL Jhimruk Bikas Bank Ltd. JHBL Kanchan Development Bank KADBL Kailash Bikas Bank Ltd. KBBL Kasthamandap Development Bank KDBL Kabeli Bikas Bank KEBL Kakre Bihar Bikash Bank Ltd KKBL Kamana Bikas Bank KMBL Kalika Microcredit Development Bank Ltd. KMCDB Kankai Bikas Bank Ltd. KNBL Karnali Development Bank KRBL Mahakali Bikas Bank MBBL

22 Sr. No. Company Name Symbol Quantity Amount Rs. Trades High Low Close Average Trading Days (In Million) 73 Miteri Development Bank MDB Malika Bikas Bank MDBL Metro Development Bank Mission Development Bank Ltd. Mithila LaghuBitta Bikas Bank Ltd. METRO MIDBL MLBBL Muktinath Bikas Bank Ltd. MNBBL Manaslu Bikas Bank Ltd. MSBBL Matribhumi Development Bank Ltd. Narayani Development Bank NagBeli LaghuBitta Bikas Bank Ltd. Nepal Community Development Bank Ltd. Nepal Consumer Development Bank Ltd. NDEP Development Bank MTBL NABBC NBBL NCDB NCDBL NDEP Nilgiri Bikas Bank NGBL NIDC Development Bank Ltd. NIDC Nerude Laghubita Bikas Bank Naya Nepal Laghubitta Bikas Bank Ltd. NLBBL , NNLB Nirdhan Utthan Bank NUBL , Pacifi c Development Bank Pathibhara Bikas Bank Public Development Bank Paschimanchal Bikash Bank PADBL PBSL PDB PDBL Prabhu Bikas Bank PRBBL Professional Diyalo Bikas Bank Ltd. PRDBL Purnima Bikas Bank Ltd. PURBL Rising Development Bank Ltd. Rural Microfi nance Development Centre Ltd. RDBL RMDC Sahayogi Bikas Bank SBBLJ Siddhartha Development Bank Ltd. SDBL Sewa Bikas Bank SEWA Shine Resunga Development Bank Ltd. SHINE Sindhu Bikash Bank Ltd SINDU Sana Kisan Bikas Bank Ltd SKBBL , Swarojgar Laghu Bitta Bikas Bank Ltd. Summit Micro Finance Development Bank Ltd. Subhechha Bikas Bank SLBBL , SMFDB , SUBBL

23 Sr. No. Company Name Symbol Quantity Amount Rs. Trades High Low Close Average Trading Days (In Million) Supreme Development Bank Ltd. Swabalamban Bikas Bank SUPRME SWBBL , Triveni Bikas Bank TBBL Tourism Development Bank Tinau Development Bank TDBL TNBL Vibor Bikas Bank VBBL Western Development Bank Yeti Development Bank WDBL YETI Group Total Finance Sr. No. Company Name Symbol Quantity Amount Rs. Trades High Low Close Average Trading Days (In Million) 117 Central Finance Co. Ltd. CFCL Citizen Investment Trust CIT , Civil Merchant Bittiya Santha Ltd. CMBSL Everest Finance Ltd. EFL Fewa Finance Co. Ltd. FFCL Goodwill Finance Co. Ltd. GFCL Guheshowori Merchant Bank & Finance Co. Ltd. Hama Merchant & Finance Ltd. Himalayan Finance (Bittiya Sanstha) GMFIL HAMA HFL ICFC Finance ICFC International Leasing & Finance Co. Ltd. ILFC Jebils Finance Ltd. JEFL Janaki Finance Ltd. JFL Kaski Finance KAFIL Kathmandu Finance Ltd. KFL Lalitpur Finance Ltd. LFC Lumbini Finance Ltd. LFLC Manjushree Financial Institution Ltd. MFIL Maha Laxmi Finance Ltd. MFL Multipurpose Finance Company MPFL Nepal Aawas Finance NABB Namaste Bittiya Sanstha Ltd. NBSL NIDC Capital Markets Ltd. NCM Nava Durga Finance Co. Ltd. NDFL Nepal Express Finance Ltd. NEFL Nepal Finance Ltd. NFS Nepal Housing & Merchant Finance Ltd. Narayani National Finance NHMF NNFC

24 Sr. No. Company Name Symbol Quantity Amount Rs. Trades High Low Close Average Trading Days (In Million) 145 Om Finance Ltd. OFL Paschimanchal Finance Co. Ltd. PFC Peoples Finance Ltd. PFCL Premier Finance Co. Ltd. PFCLL Prudential Finance Company PFIL Pokhara Finance Ltd. PFL Patan Finance PFLBS ProgressiveFinance PROFL Seti Finance SETI Siddharth Finance Ltd. SFL Shree Investment Finance Co. Ltd. Sagarmatha Merchant Banking & Finance SIFC SMBF Synergy Finance Ltd. SYFL Union Finance Co. Ltd. UFCL Unique Finance Ltd. UFIL United Finance Ltd. UFL Zenith Finance ZFL Group Total Hotels Sr. No. Company Name Symbol Quantity Amount Rs. Trades High Low Close Average Trading Days (In Million) 162 Oriental Hotels OHL Soaltee Hotel SHL Taragaon Regency Hotel TRH Hydro Power Group Total Sr. No. Company Name Symbol Quantity Amount Rs. Trades High Low Close Average Trading Days (In Million) Arun Valley Hydropower Development Co. Ltd. Butwal Power Company Chilime Hydropower Company National Hydro Power Company Ridi Hydropower Development Company Ltd. AHPC , BPCL CHCL , , NHPC , RHPC Sanima Mai Hydropower Ltd. SHPC Insurance Group Total Sr. No. Company Name Symbol Quantity Amount Rs. Trades High Low Close Average Trading Days (In Million) 171 Alliance Insurance Co. Ltd. AIC Asian Life Insurance Co. ALICL , ,

25 Sr. No. Company Name Symbol Quantity Amount Rs. Trades High Low Close Average Trading Days (In Million) 173 Everest Insurance Co. Ltd. EIC , Guras Life Insurance Company Ltd. Himalayan General Insurance Co. Ltd Lumbini General Insurance Co. Ltd. GLICL HGI LGIL Life Insurance Co. Nepal LICN , , NB Insurance Co. Ltd. NBIL Nepal Insurance Co. Ltd. NICL Neco Insurance Co. Ltd. NIL NLG Insurance Company Ltd. NLG Nepal Life Insurance Co. Ltd. NLIC , , National Life Insurance Co. Ltd. NLICL , , Premier Insurance Co. Ltd. PIC Prudential Insurance Co. Ltd. PICL Prime Life Insurance Company PLIC , , Rastriya Beema Sansthan RBS , Sagarmatha Insurance Co. Ltd. SIC , Shikhar Insurance Co. Ltd. SICL Siddhartha Insurance Ltd. SIL Surya Life Insurance Company United Insurance Co. (Nepal) Ltd. SLICL UIC Group Total Manufacturing And Processing Sr. No. Company Name Symbol Quantity Amount Rs. Trades High Low Close Average Trading Days (In Million) 193 Bottlers Nepal (Terai) BNT , Himalayan Distillery HDL Nepal Lube Oil NLO Uniliver Nepal UNL , Group Total Mutual Fund Sr. No. Company Name Symbol Quantity Amount Rs. Trades High Low Close Average Trading Days (In Million) 197 Nabil Balance Fund 1 NBF Siddhartha Investment Growth Scheme-1 SIGS Group Total Others Sr. No. Company Name Symbol Quantity Amount Rs. Trades High Low Close Average Trading Days (In Million) Nepal Film Development Company Nepal Doorsanchar Comapany NFD NTC

26 Sr. No. Company Name Symbol Quantity Amount Rs. Trades High Low Close Average Trading Days (In Million) Preferred Stock Group Total Sr. No. Company Name Symbol Quantity Amount Rs. Trades High Low Close Average Trading Days (In Million) 201 Everest Bank Con. Pref. EBLCP , Promotor Group Total Sr. No. Company Name Symbol Quantity Amount Rs. Trades High Low Close Average Trading Days (In Million) ACE Development Bank Promoter Alliance Insurance Company Ltd. Promoter Asian Life Insurance Co. Ltd Promoter Bhrikuti Bikash Bank Promoter Bank of Kathmandu Promoter City Development Bank Ltd. Promoter Citizens Bank Internatioal Promoter Deprosc LaghuBitta Promoter ACEDPO AICPO ALICLP BBBLPO BOKPO CDBLPO CZBILP DDBLPO Everest Bank Ltd.Promoter EBLPO , Excel Development Bank Ltd. Promoter Fewa Finance Company Promoter Global IME Bank Ltd. Promoter Goodwill Finance Co. Ltd. Promoter Guheyshwori Merchant & Finance Ltd. Promoter Grand Bank Promoter EDBLPO FFCLPO GBIMEP GFCLPO GMFILP GRANDP Hama Merchant & Finance Ltd. Promoter HAMA- PO H & B Development Bank Promoter Himalayan Bank Ltd. Promoter ICFC Finance Promotor Infrastructure Development Bank Promoter Jyoti Bikash Bank Ltd. Promoter Janaki Finance Promoter Kailash Bikas Bank Ltd. Promoter Kumari Bank Promotor Kasthamandap Dev. Bank Ltd Promoter HBDLPO HBLPO ICFCPO IDBLPO JBBLPO JFLPO KBBLPO KBLPO KDBLPO

27 Sr. No. Company Name Symbol Quantity Amount Rs. Trades High Low Close Average Trading Days (In Million) Kathmandu Finance Ltd. Promoter KIST Bank Promoter Laxmi Bank Promoter Lumbini Bank Promotor Mahakali Bikas Bank Ltd. Promoter MachhaPuchhre Bank Promotor Malika Development Bank Promoter Miteri Development Bank Ltd. Promoter NABIL Bank Promotor Nepal Credit & Commercial Bank Ltd. Promoter NDEP Development Bank Ltd. Promoter Nepal Express Finance Promoter NIC Asia Bank Limted Promoter National Life Insurance Co. Ltd. Promoter Nepal Life Insurance Co. Ltd. Promoter NMB Bank Promoter Narayani National Finance Company Promoter Om Finance Promoter Prime Commercial Bank Promoter Paschimanchal Bikash Bank Ltd. Promoter Pokhara Finance Company Promoter Prabhu Finance Ltd. Promoter Progressive Finance Promoter Sahayogi Bikas Bank Ltd. Promoter Sanima Bank Ltd. Promoter Siddhartha Bank Promoter Seti Finance Ltd. Promoter Sewa Bikas Bank Ltd. Promoter Shikhar Insurance Co. Ltd. Promoter Surya Life Insurance Co. Ltd. Promoter Sunrise Bank Ltd Promoter Subbecha Bikas Bank Ltd. Promoter KFLPO KISTPO LBLPO LUBLPO MBBLPO MBLPO MDBLPO MDBPO NABILP , , NCCBPO NDEPPO NEFLPO NICAP NLICLP NLICP , NMBPO NNFCPO OFLPO PCBLP PDBLPO PFLPO PRFLPO PROFLP SBBLJP SBBLPO SBLPO SETIPO SEWAPO SICLPO SLICLP SRBLPO SUBBLP

28 Sr. No. Company Name Symbol Quantity Amount Rs. Trades High Low Close Average Trading Days (In Million) Supreme Development Bank Ltd. Promoter Tinau Development Bank Ltd. Promoter Unique Finance Ltd. Promoter United Finance Company Promoter SUPRMP TNBLPO UFILPO UFLPO Group Total Tradings Sr. No. Company Name Symbol Quantity Amount Rs. Trades High Low Close Average Trading Days (In Million) 263 Bishal Bazar Company BBC , Salt Trading Corporation STC Group Total Grand Total

29 Name Of Company Nepal Stock Exchange Ltd. Top 10 Securities By Amount ( 16-Jul-2013 To 16-Jul-2014 ) Symbol Amount (Rs. In Milllion) Chilime Hydropower Company CHCL Nepal Bank NBL Nepal Bangladesh Bank NBB National Life Insurance Co. Ltd. NLICL Nepal Life Insurance Co. Ltd. NLIC NABIL Bank Promotor NABILP Everest Bank EBL Nepal Credit And Commercial Bank NCCB NIC Asia Bank Ltd. NICA Kumari Bank KBL

30 Nepal Stock Exchange Ltd. Top Ten Securities By s ( 16-Jul-2013 To 16-Jul-2014 ) Company Name Symbol No. of s ( In 000) Nabil Balance Fund 1 NBF Siddhartha Investment Growth Scheme-1 SIGS Nepal Bank NBL National Hydro Power Company NHPC 9900 Nepal Bangladesh Bank Promoter NBBPO 6377 Nepal Bangladesh Bank NBB 6041 Nepal Credit And Commercial Bank NCCB 5882 Taragaon Regency Hotel TRH 5029 Kumari Bank KBL 4008 Machhapuchhre Bank MBL

31 Nepal Stock Exchange Ltd. Top Ten Securities By Number of Trades ( 16-Jul-2013 To 16-Jul-2014 ) Company Name Symbol No Of Trades Mega Bank Nepal Ltd. MEGA Chilime Hydropower Company CHCL Sanima Mai Hydropower Ltd. SHPC Agriculture Development Bank ADBL Nepal Bangladesh Bank NBB Rural Microfi nance Development Centre Ltd. RMDC NIC Asia Bank Ltd. NICA Century Commercial Bank Ltd. CCBL Nepal Credit And Commercial Bank NCCB Global IME Bank GBIME

32 Company Name Nepal Stock Exchange Ltd. Top Ten Securities By Market Capitalization ( 16-Jul-2013 To 16-Jul-2014 ) Symbol Capitalisation (Rs.In Milllion) Nepal Doorsanchar Comapany NTC Nabil Bank NABIL Nepal Life Insurance Co. Ltd. NLIC Chilime Hydropower Company CHCL Standard Chartered Bank SCB Everest Bank EBL Nepal Investment Bank NIB Nepal SBI Bank SBI Himalayan Bank HBL Life Insurance Co. Nepal LICN