ANNUAL TRADING REPORT. Fiscal Year 2012/13 NEPAL STOCK EXCHANGE LTD.

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2 ANNUAL TRADING REPORT Fiscal Year 2012/13 NEPAL STOCK EXCHANGE LTD.

3 The following months of the Gregorian calendar year are the approximate equivalents of the month of the Nepali calendar year Greorian calendar Mid-April-Mid-May Mid-May-Mid-June Mid-June-Mid-July Mid-July-Mid-August Mid-August-Mid-September Mid-September-Mid-October Mid-October-Mid-November Mid-November-Mid-December Mid-December-Mid-January MId-January-Mid-February Mid-February-Mid-March Mid-March-Mid-April Nepali calendar Baisakh Jestha Ashadh Shrawan Bhadra Ashwin Kartik Marga Paush Magh Falgun Chaitra

4 NATIONAL ECONOMY IN FY 2012/13 The preliminary estimation of GDP growth rate for the FY 2012/13 is 3.56 percent at the base price and 3.65 percent at current price. However the targeted growth rate for the period was 5.5 percent. Growth rates in FY 2010/11 and 2011/12 at base prices were 3.9 and 4.5 respectively. Decrease in food production reduced the growth rate of agricultural sector by 3.7 percent in comparison to previous fiscal year which is the main cause to decrease in the growth rate. The non-agriculture sector in the current fiscal year, however, is estimated to grow by 4.98 percent, which is higher by 0.68 percentage points compared to the previous fiscal year. As the achieved economic growth is less than targeted, monetary inflation rate is higher than targeted, and the trade deficit is in increasing trend, they poses challenges to the Nepali economy. Gradual structural change can be observed in the Nepalese economy as per economic survey of FY 2012/13. A trend of decreasing contribution of agriculture and industry sectors and increasing that of services sector to GDP is clearly visible. On sectoral basis, contributions of primary, secondary and tertiary sectors to GDP are estimated at 35.3 percent, 14.4 percent and 50.3 percents respectively. Such contribution of primary sectors is less by 0.99 as compared to the previous fiscal year. Contribution of secondary and tertiary sector, however, has increased by 0.05 percent and 0.94 percent in comparison to the previous fiscal year. Likewise, classification of GDP into two sectors namely, agriculture and non-agriculture shows contribution of agriculture sector to GDP has decreased while that of nonagriculture has increased a little. Contribution of agriculture, forestry, and fisheries to GDP is estimated at 35.3 percent, while remaining 64.7 percent to be shared by the non-agriculture sector. Such shares in FY 2011/12 were 36.3 and 63.7 percent respectively. CONSUMPTION The share of consumption on GDP has increased to 90.7 percent this fiscal year from 88.5 percent in the previous fiscal year. In this year, share of the private sector and that of government on GDP stood at 79.2 percent and 9.8 percent, respectively. Gross consumption expenditure, shares of the private, government, and non-profit institutions stood at 87.3 percent, 10.8 percent and 1.9 percent, respectively. The share of government consumption has declined in the current fiscal year. Of the gross consumption, shares of food grain and services were 65.6 percent and 10.7 percent, respectively. 1

5 Total government expenditure is estimated to grow by 19.4 percent in the current fiscal year reaching Rs billion whereas such expenditure grew by 14.8 percent reaching Rs billion in the previous fiscal year. Of this total, share of recurrent and capital expenditure is estimated at Rs billion and Rs billion with the remaining Rs billion shared by fiscal arrangement. Growth in revenue mobilization is estimated to increase by 18.5 percent in the current fiscal year totaling Rs billion. This total comprise of Rs billion as tax revenue and the remaining Rs billion as non-tax revenue. SAVINGS The share of Gross Domestic Savings on GDP has decreased by 2.2 percent in the current fiscal year. The share of gross domestic saving on gross domestic production has reached 9.3 percent while that of gross national saving has reached 38.4 percent. In the current fiscal year Gross Domestic Savings is estimated to total Rs billion while Gross National Savings is estimated at Rs billion. Gross Domestic Saving was Rs billion and Gross National Saving was Rs billion in the previous fiscal year. CAPITAL FORMATION The share of investment has been estimated to be increased by 2.9 percent in gross domestic production in FY 2012/13. Such share, which stood at 34.9 percent in the previous fiscal year, is estimated to reach 37.8 percent in this year. Out of this, the share of gross capital formation is 21.2 percent. The government sector has contributed 18.9 percent of the total capital formation while the private sector shared 81.1 percent. In the previous year the private sector has contributed percent of the total capital formation while the government sector shared the rest percent. This figure shows that the government sector participation has decline by 3.4 percent in fixed capital formation in the current fiscal year. NET EXPORTS OF GOODS AND SERVICES Foreign trade deficit of Nepal is ever growing. Low production of export oriented goods and higher imports of consumable goods due to the rise in per capita income and change in consumption pattern of the people, price rise of petroleum products, and exchange rate depreciation of Nepalese currency against US Dollar have been attributing factors to persistent trade deficit as such. The share of exports in GDP in the current fiscal year has reached 11.3 percent while that of imports stood at 38.8 percent. As a whole trade deficit raise to 28.5 percent this year from 23.4 percent of previous fiscal year which shows that there is raise in trade deficit on GDP this fiscal year. This shows that there is raise in trade deficit and this raise in trade deficit has increase the portion in Gross Domestic Production. Exports during the first eight months of the current fiscal year rose by 4.2 percent reaching Rs billion, and at the same time imports also rose by 20.4 percent totaling billion. Rates of growth in export and import in the previous fiscal year were 15.4 and 16.5 percent respectively. As such, total trade deficit at Mid-March of 2013 totaled Rs billion with an increase of 23.5 percent in this 2

6 period, compared to just 16.7 percent growth occurred in the same period of the previous fiscal year. NATIONAL DISPOSAL INCOME The total source of income available to spend within the country is defined as Gross National Disposable Income (GNDI). In this fiscal year, the estimated growth is 11.3 percent in National Disposable Income at current prices which was 16.7 percent in previous fiscal year. Increase in remittance income and growth in services sectors output increase the disposal income this fiscal year. Per capita GDP of a Nepali is estimated to reached Rs. 62, or US$ current fiscal year. Likewise, based on Gross National Income, per capita income of a Nepali is estimated to reached Rs. 62,797 or US$ In this current fiscal year on the basis of Gross National Disposal Income the ratio of National Consumption is 70.2 percent and National Saving is 29.8 percent which was 68.9 percent and 31.1 percent respectively in the fiscal year 2068/69. The ratio of total outstanding debt to GDP has decreased. For instance, such ratio was 34.1percent in the first eight months of FY 2011/12 has decline to 30.1 percent in the same period of FY 2012/13. The ratio of foreign debt to GDP has also decreased from the previous year s 20.1 percent to 17.6 percent in this year and the ratio of internal debt has also decreased from 13.9 percent to 12.4 percent in the same period. Balance of Payment (BOP) surplus totaled Rs billion due to the growth in remittance income and increased fund reimbursements from the donor community but BOP surplus in the same period of the previous fiscal year was billion. Poverty is the major problem in our country. Poverty reduction has been targeted to 4.2 percent decline for past three years but it can be reduced by only 1.4 percent. The Nepal Living Standard Survey (NLSS III), made public in FY 2011/12 shows percent population below the poverty line. According to the same survey, the Gini Index, which depicts income inequality, coming down from 0.41 per cent to 0.33 per cent, meaning that there has been a decline in income inequality. GLOBAL COMPETITIVENESS INDEX The Global Competitiveness Report for published by World Economic Forum showed that Nepal s Global Competitiveness Index (GCI) ranking has improved for this year with 117 th position out of 148 countries which was 125 th out of 144 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. Out of these pillars, Nepali investment environment stood at 91th position on macroeconomic environment, 100 th position on market size whereas the worst situation is for infrastructure development in which Nepal is at 144 th position. Similarly, for technological readiness and labor efficiency, the position is 133. However, it is in 95th position in the category of financial market development. In the category of efficiency of financing through local equity market, Nepal stood on 53rd position which was 44th last year. 3

7 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 Strength of investors protection Soundness of banks Regulation of securities exchanges Source: The Global Competitiveness Index and ( 4

8 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 follows: PRIMARY MARKET The total amount that is approved by Securities Board of Nepal (SEBON), regulator of capital market in Nepal, for the primary issuance to public on the FY 2012/13 was of Rs from 42 numbers of approvals including ordinary shares, right shares, and debentures. This is an increase of per cent in total amount compared to the previous fiscal year. Out of the total approvals for public issues, 30 companies get approvals for initial public offering (IPO) of Rs This is an increase of 139.8% on the amount when compared with the previous year. During the same period seven companies get approval to issue debenture for the amount of Rs Similarly, total 5 approvals were provided to companies to issue right shares amounting to Rs which is an increase of 772 per cent in amount when compared to the previous year. Out of the total right share amount approval, the amount issued by Nepal Bank Ltd. has contributed the highest of Rs These figures indicate that the activities in primary market have been increased significantly during this FY. Primary approval issued by SEBON for the FY 2012/13 S. No. Types of Securities FY 2011/12 FY 2012/13 No of Issues Million No of Issues Million 1 Debenture Ordinary Right Total Source: 5

9 Following chart shows the capital mobilization trend for the last eight years in the primary market. Source: Security Board of Nepal SECONDARY MARKET The downfall trend of secondary market since last few years has revived during the fiscal year (FY2012/13). 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 2012/13, the secondary turnover in Nepali capital market has also increased. During the FY 2012/13, the total trading volume has increased by per cent and amounted to Rs billion. The amount was Rs billion last year. Similarly, during the review period, numbers of shares has been traded which is an increase of per cent compared to previous year. However, number of transactions has decreased by 0.38 per cent to It was last year. Significant increase in trading volume and number of shares and decrease in number of transaction shows that bulk of shares has been traded in NEPSE during the year. There is no change in number of scrips traded during the year to previous year which is 230. The total trading days were 6

10 232 during the year. The daily average turnover counts for Rs in the review year, which was Rs one year back and Rs in the previous year. Group Wise Distribution The listed companies in NEPSE has been distributed in nine sectors namely commercial banks, development banks, finance companies, hydro power companies, hotels, trading companies, manufacturing and processing companies, insurance companies and other companies. Group-wise distribution of turnover during the FY 2012/13 Amount ( Million) No. of s ('000) S.No. Companies C.FY % on total Total % on total 1 Commercial Banks % % 2 Finance % % 3 Hotel % % Manufacturing & Processing % % 5 Other % % 6 Hydro Power % % 7 Trading % % 8 Insurance % % 9 Development Banks % % Total (Group-wise trading amount includes promoter shares, odd lot and manual transactions but excludes mutual funds and preference shares) As usual, the volume of trading amount from the Commercial Banks group has the highest stake on the total trading volume. Including the trading of promoter shares, Commercial Banks trading volume was Rs billion, per cent of total trading of equity shares. Similarly, the group of Hydro power companies and insurance companies remains at second and third position with per cent and 7.44 per cent of the total trading amount respectively. During this year the trading volume of insurance companies has significantly increased to 7.44 per cent of total trading volume. Similarly, the trading volume of development bank group and finance group has remained at fourth and fifth position with 4.90% and 2.72% respectively. Trading of Bond Both government and corporate bonds has been traded during the FY 2012/13. Out of 18 corporate bonds listed at NEPSE, from the eight transactions, Rs. 11 crore 59 lakhs 50 thousand 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 bond in Nepali capital market. 7

11 Government and Corporate Bond Transaction during FY 2012/13 SN Name Quantity Rate Amount 1 9 % Bikas Rinpatra-2072 "Ga" 1,65, ,65,00, % Bikas Rinpatra-2071 "Gha" 1,00, ,00,00, % Bikas Rinpatra-2070 "Ka" 1,08, ,08,50, % Laxmi Bank Debenture ,00, % Nabil Bank Debenture ,00, % Laxmi Bank Debenture ,00,00, % Global IME Bank Debenture ,40,00, % Bikas Rinpatra-2072 "Gha" ,20,00,000 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 within this fiscal year. This has contributed for the significant increase in trading amount of mutual funds units by % and reached to Rs compared with previous year. The existing NCM mutual fund has been matured during this year. 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 2012/13. The trading amount of preference shares has been increased by per cent and reached to as compared to the previous year. The number of preference shares traded during the period is 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 The amount is an increase of per cent as compared to the previous year. This amount includes Rs from 13 commercial banks, Rs from 14 finance companies and Rs from 12 development banks. Similarly, the trading amount of promoter shares is 7.40 per cent of the total traded volume during the period. 8

12 Ranking List of Top Five Companies On the Basis of Amount Amount SN Name of the Companies Rs. in 1 Everest Bank Limited Chilime Hydro Power Co Nepal Bangladesh Bank Limited Bank of Kathmandu Limited Nabil Bank Limited From the total 230 listed companies and out of top 10 companies on the basis of trading amount, 9 are from commercial banks. Everest Bank Ltd. ranked on the top position showing the trading amount of Rs which is followed by Chilime Hydropower Co. Ltd. and Nepal Bangladesh Bank Ltd. with Rs and Rs respectively. Similarly, Bank of Kathmandu Ltd. has ranked fourth position with Rs and Nabil Bank Ltd. ranked fifth position with Rs On the basis of number of shares traded Nepal Bangladesh Bank Ltd. hold the first position with thousands number of shares traded during the FY 2012/13. Then after Nabil Balance Fund 1 and KIST Bank Ltd. remains at second and third position respectively with thousand and thousand number of shares. On the basis of number of transactions Nepal Bangladesh Bank Ltd. is on first place with transactions whereas Janta Bank Ltd., Chilime Hydropower Co. Ltd., Bank of Kathmandu Ltd. and Agriculture Development Bank Ltd. are on second, third forth and fifth place with 11425, 11395, and number of transactions. The trading of top ten companies is per cent of the total trading amount and per cent 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 respective outstanding number of 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 2012/13. It has increased by per cent and reached to Rs billion 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

13 Groupwise change in market capitalization ( ) Groups Opening ( ) Closing ( ) Market Cap % age of total Market Cap(b) % age of total Change Commercial Banks % % 53.56% Manufacturing & Processing % % 29.02% Hotels % % 34.59% Others % % 21.63% Hydro Power % % 60.63% Trading % % % Insurance % % % Finance % % -9.92% Development Bank % % 13.79% Total % By reviewing the group-wise market capitalization composition, banks and financial institutions recorded the highest of the total market capitalization as usual. Commercial bank s group contributes about per cent of the total market capitalization and it has increased by per cent from the opening market capitalization for the FY 2012/13. The market capitalization of insurance group and hydro power group has increased significantly by per cent and per cent respectively as compared to the opening figure. The groups to lose the amount of market capitalization are trading and finance. 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

14 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 4.29 per cent from 2.79 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 7 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, group-wise index and float index. 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 2012/13. The closing NEPSE index remains at and the highest point during the year was on 17-Feb, 2013 and the lowest is recorded in 16-Jul, 2012 of points. In total NEPSE index has increased by percent from the closing index point for the FY 2012/13. The mean index throughout the year is point and standard deviation is which shows that NEPSE was less volatile than last year during which the standard deviation was of The trend of overall NEPSE index can be viewed from the following figure: 11

15 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 4.76 per cent from the opening figure whereas the group wise index for finance companies decreased by 4.84 per cent 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 2012/13 S.No Group Opening Index Closing Index Change 1 Commercial Banks % 2 Manufacturing & Processing % 3 Hotels % 4 Others % 5 Hydropower % 6 Trading % 7 Insurance % 8 Finance % 9 Development Banks % Sensitive Index: 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 2012/13 which is an increase of per cent as compared with the closing 12

16 sensitive index of last fiscal year. The sensitive index reached to at the highest point on December 27, 2012 and at lowest on July 16, 2012 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 Eleven Years 13

17 Jul 12 Aug 12 Sep 12 Datewise NEPSE Index FY 2012/13 Oct 12 Nov 12 Dec Jan 13 Feb 13 Mar 13 Apr 13 May 13 June 13 July 13 14

18 Listing Till Ashar end 2070, NEPSE has total 230 companies listed shares having paid up value of Rs billion. Moreover 14 Corporate bonds with the value of Rs billion and 17 government bonds having the paid up value of Rs billion are also listed at NEPSE. Securities listed during FY2012/13 S.N. Type of Securities No of Companies No of Listed Securities 000 Paid up value (Rs. in s) 1 Bonus Ordinary Right Mutual Fund Corporate Bond Total Additional 20 companies enlisted their thousand ordinary shares having paid up value of Rs However, the listing of 20 new companies and merger of six companies makes the total listed companies to 230. Out of 20 new companies, 14 represent development banks, 2 from finance companies, 1 from insurance company and the remaining three 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 2012/13 S.No Company Name No of s 000 Listed Amount () Listing Date 1 Kanchan Development Bank Ordinary Gulmi Bikas Bank Ordinary Consumer Development Bank Ordinary Tourism Development Bank Ordinary Metro Development Bank Ordinary Pacific Development Bank Ordinary Manjushree Financial Institution Ordinary Rising Development Bank Ordinary Nepal Bank Ordinary Innovative Development Bank Ordinary Reliance Finance Ordinary Kankre Bihar Bikas Bank Ordinary Civic Development Bank Ordinary

19 14 Khandbari Development Bank Ordinary International Development Bank. Ordinary Bright Development Bank Ordinary Civil Bank Ordinary Commerz and Trust Bank Nepal Ordinary Swarojgar Laghubitta Bikas Bank Ordinary NLG Insurance Company Ordinary 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 80% 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 20 new companies has been listed out of which only one is insurance company and other are all bank and finance companies and six new debentures have been listed. Likewise, 58 companies have listed their thousands number of bonus shares with paid up value of Rs at NEPSE up to Ashar end of the FY 2012/13. Similarly, 9 companies listed their thousand right shares with paid up value of Rs. 100 each. With this, at the end of FY 2012/13, NEPSE has 28 companies listed under commercial bank group, 83 in development bank group, 66 companies in finance company group, 23 companies in insurance group, 18 companies in manufacturing and processing group, four each in hotel, hydropower and trading group and remaining two in other group. 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, 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 120 companies have fulfilled these criteria during the FY 2011/12 and classified under group A for the FY There were 133 companies under this category last year. 16

20 Secondary Market Indicators Secondary Market Trends 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 4.79% 3.19% 2.54% 3.67% 6.29% Trading amount / market cap 4.23% 3.14% 2.06% 2.79% 4.29% Trading amount / GDP 2.17% 0.99% 0.48% 0.65% 1.30% Market capitalization / GDP 51.29% 31.33% 23.49% 23.41% 30.24% 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 2012/13 is 4.29 per cent which was 2.79 per cent in the preceding year. Similarly, the ratio of traded amount to GDP was 1.30 per cent which is an increase from 0.65 per cent in the previous year. It shows that the liquidity in the market has slightly 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 about 39 per cent of total market capitalization consists of largest ten companies and the concentration ratio of top ten companies on turnover volume is 49 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 2012/13, 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

21 Summary Sheet of First Twelve Month Transactions Mid July Mid July 2013 F/Y 2069/70 Mid Jul 2010-Mid Jul 2011 Mid Jul 2011-Mid Jul 2012 Change Mid Jul 2012-Mid Jul 2013 Change Particulars units ( '000 ) 2067/ / /70 Amount Rs. in units Amount in units Amount in ( '000 ) Rs. in % ( '000 ) Rs. in 1 Turnover A Commercial Bank 8, , B Finance 3, C Hotel 1, D Manufacturing & Processing 1, E Other F Hydro Power 1, G Trading H Insurance 1, I Development Bank 5, J Mutual Fund K Preffered Stock L Promotor 1, Corporate Bond Government Bond Market Days Average Daily Turnover Number of Transactions Number of Scrips Number of Companies Listed Total Paid Up Value of Listed s Total Number of Listed Securities Market Capitalization NEPSE Index - High Low Closing Market Capitalization of Group -A Total Paid Up Value of Group - A NEPSE Sensitive Index - High Low Closing NEPSE Float Index - High Low Closing Bond Market (Total Listed) i Government Bond ii Corporate Bond Note:- US $ 1 =Rs (16 Jul 2013) % 18

22 Company wise Yearly Transactions Mid July Mid July 2013 F/Y 2069/70 Commercial Bank Number Trading 1 Agriculture Development Bank Limited Bank of Kathmandu Civil Bank Ltd Commerz and Trust Bank Nepal Ltd Citizens Bank International Limited Everest Bank Ltd Global IME Bank Limited GRAND Bank Ltd Grand Bank Limited Promoter Himalayan Bank Ltd Janata Bank Nepal Ltd Kumari Bank Ltd KIST Bank Limited Laxmi Bank Limited Lumbini Bank Ltd Machhachapuchhre Bank Ltd Nabil Bank Ltd Nepal Bangladesh Bank Ltd Nepal Bank Limited Nepal Credit And Com. Bank Nepal Investment Bank Ltd NIC Asia Bank Ltd NMB Bank Ltd Prime Commercial Bank Limited Sanima Bank Ltd Nepal SBI Bank Limited Siddhartha Bank Limited Standard Chartered Bank Ltd Sunrise Bank Limited Manufacturing & Processing Number Trading 1 Bottlers Nepal Ltd.(Balaju) Bottlers Nepal (Terai)Ltd Himalayan Distillery Ltd Nepal Lube Oil Ltd Uniliver Nepal Ltd

23 Development Bank Number Trading 1 Ace Development Bank Limited Alpine Development Bank Limited Axis development Bank Ltd Bhrikuti Vikash Bank Limited Bageshowori Dev.Bank Bagmati Development Bank Limited Bhargav Bikash Bank Ltd Biratlaxmi Bikash Bank Limited Bright Development Bank Ltd Bishwa Bikas Bank Limited Business Universal Development Bank Ltd Chhimek Laghubitta Bikas Bank Ltd City Development Bank Limtied Clean Energy Development Bank Limited Civic Development Bank Ltd Country Development Bank Ltd Diyalo Bikas Bank Ltd Diprox Development Bank Excel Development Bank Ltd First Microfinance Development Bank Ltd Garima Bikash Bank Limited Gandaki Bikas Bank Limited Gaurishankar Development Bank Ltd Gulmi Development Bank Ltd H & B Development Bank Ltd Infrastructure Development Bank Limited Innovative Development Bank Ltd International Development Bank Ltd Jyoti Bikash Bank Limited Kanchan Development Bank Ltd Kailash Bikas Bank Ltd Kasthamandap Development Bank Ltd Kabeli Bikas Bank Limited Khandbari Development Bank Ltd Kakre Bihar Bikash Bank Ltd Kamana Bikas Bank Limited Kankai Bikas Bank Ltd Karnali Development Bank Limited Mahakali Bikas Bank Ltd Miteri Development Bank Limited Malika Bikash Bank Limited Metro Development Bank Limited

24 43 Manakamana Development Bank Limited Muktinath Bikas Bank Ltd Nepal Consumer Development Bank Ltd NDEP Development Bank Limited Nilgiri Bikas Bank Limited NIDC Development Bank Ltd Nerude Laghubita Bikas Bank Limited Nirdhan Utthan Bank Ltd Pacific Development Bank Limtied Pathibhara Bikas Bank Limited Public Development Bank Limited Paschimanchal Bikash Bank Professional Bikas Bank Limited Purnima Bikas Bank Limited Rara Bikas Bank Limited Rising Development Bank Ltd Shangrila Development Bank Ltd Sahayogi Vikas Bank Siddhartha Development Bank Limited Sewa Bikas Bank Limited Swarojgar Laghu Bitta Bikas Bank Ltd Summit Micro Finance Development Bank Ltd Subhechha Bikas Bank Limited Supreme Development Bank Ltd Swabalamwan Bikash Bank Triveni Bikas Bank Limited Tourism Development Bank Ltd Tinau Development Bank Limited Vibor Bikas Bank Limited Western Development Bank Limited Hotel Number Trading 1 Oriental Hotel Ltd Soaltee Hotel Ltd Taragaon Regency Hotel Trading Number Trading 1 Bishal Bazar Co. Ltd Salt Trading Corporation

25 Insurance Number Trading 1 Alliance Insurance Company Limited Asian Life Insurance Co. Limited Everest Insurance Co. Ltd Guras Life Insurance Co. Ltd Himalayan Gen.Insu. Co.Ltd Lumbini General Insurance Life Insurance Co. Nepal NB Insurance Co. Ltd Nepal Insurance Co.Ltd Neco Insurance Co Nepal Life Insurance Co. Ltd National LifeInsu. Co.Ltd Premier Insurance co. Ltd Prudential Insurance Co Prime Life Insurance Company Limited Rastriya Beema Sansthan Sagarmatha Insurance Co.Ltd Shikhar Insurance Co. Ltd Siddhartha Insurance Limited Surya Life Insurance Company Limited United Insurance Co.(Nepal)Ltd Hydro Power Number Trading 1 Arun Valley Hydropower Dev Company Ltd Butwal Power Co. Ltd Chilime Hydro power Co National Hydro Power Co Others Number Trading 1 Nepal Doorsanchar Company Limited Mutual Fund Number Trading 1 Nabil Balance Fund

26 2 NCM Mutual Fund Siddhartha Investment Growth Scheme Preferred Stock 1 Everest Bank Limited Convertible Preference Finance Number Trading Number Trading 1 Api Finance Limtied Arun Finance Limited Central Finance Co. Ltd Citizen Investment Trust Civil Merchant bittya sanstha Everest Finance Ltd., Fewa Finance Co. Ltd Goodwill Finance Co. Ltd General Finance Ltd Guheyshwori Mer. Bank. Fin Hama Merchant & Finance Ltd Himalayan Finance Limited (Bittiya Sanstha) ICFC Bittya Sanstha Ltd International Leasing And Fin. Co Janaki Finance Ltd Kaski Finance Limited Kathmandu Finance Limited Lumbini Finance Ltd ManjuShree Financial Institution Maha Laxmi Finance Ltd Multipurpose Finance Co. Ltd Nepal Aawas Finance Ltd NIDC Capital Markets Ltd Nava Durga Finance Co.Ltd Nepal Express Finance Limited Nepal Finance and Saving Co.Ltd Nepal Housing And Merchant Fin Narayani National Finance Co. Ltd Om Finance Ltd Paschimanchal Finance Co. Ltd Peoples Finance Limited Prudential Bittiya Sans Pokhara Finance Ltd

27 34 Patan Finance Ltd Prabhu Finance Company Limited Reliable Finance Limited Royal Mer. Bank. And Fin Seti Bittiya Sanstha Limited Shrijana Finance(Bittiya Sa Siddhartha Finance Limited Shree Investment Finance Co. Ltd Subha Laxmi Finance Co. Ltd Sagarmatha Mer Banking And Finance Ltd Union Finance Ltd Unique Financial Institution Limited United Finance Ltd Valley Finance Limited Yeti Finance Company Ltd Zenith Finance Limited

28 Odd Lot and Manual Transaction Sector Quantity Amount 1 Commercial Bank Finance Hotel Manufacturing & Processing Other Hydro Power Trading 8 Insurance Development Bank Mutual Fund 11 Preffered Stock Promotor (Commercial Banks) Total Bond Transaction Bond Name Quantity Amount 1 9 % Bikas Rinpatra-2072 "Ga" % Bikas Rinpatra-2071 "Gha" % Bikas Rinpatra-2070 "Ka" % Laxmi Bank Debenture % Nabil Bank Debenture % Laxmi Bank Debenture % Global IME Bank Debenture % Bikas Rinpatra-2072 "Gha" Total