Dated:2010-03-11  
 

RC Weekly Wrap Up

ABBL 165 12 | AFC 308 6 | AFCPO 255 325 | AHPC 469 9 | BBC 2748 53 | BDBL 190 2 | BLDBL 470 3 | BOAN 375 5 | BOK 817 16 | CEDBL 700 0 | CFL 413 13 | CHCL 1000 15 | CMBF 343 6 | CZBIL 486 13 | DCBL 286 1 | EBL 1550 31 | EDBL 331 6 | GBL 268 1 | HBL 925 18 | IDBL 302 13 | IMEFI 561 10 | KBL 458 17 | KFL 280 5 | KIST 260 4 | LBFIL 198 3 | LGIL 190 1 | LUBL 290 5 | MBBL 355 0 | MBL 309 5 | MDBL 230 5 | MFCL 413 11 | MGBL 181 3 | NABIL 2261 39 | NBB 248 2 | NCCB 283 5 | NDEP 210 4 | NEFL 239 0 | NHPC 68 3 | NIB 790 15 | NICB 588 0 | NMB 298 8 | NSM 200 3 | NTC 450 17 | PCBL 481 0 | PDB 200 0 | PRFL 407 8 | PSDBL 340 6 | SBBL 470 1 | SBI 708 14 | SBL 411 11 | SBSL 192 0 | SCB 3126 43 | SDBL 226 4 | SIL 150 9 | SMBF 265 0 | SRBL 350 5 | STFL 212 2 | TBBL 346 12 | VBBL 310 4 |
  NEPSE Index: What it is and What it is not!!
Saturday - 26th January, 2008 | ResCon		  
 

NEPSE index is an indicator of how the market has grown since the base year; NEPSE index is calculated taking base year of 1994. A stock market index is a listing of stocks and a statistical reflection of composite value of all its components. It is sort of a benchmark of activities, performance and any evaluation. It is a tool to represent the characteristics of the component stocks trading in the NEPSE. This index is developed to answer the million dollar question: How is the market doing and how will it shape?

Economists and statisticians use NEPSE index to study long-term growth patterns in the economy, to analyze and forecast business-cycle patterns. Investors use the index to evaluate the performance of their own portfolios. Fundamental and technical analyst’s decisions to buy or sell shares generally depend on the market index, its patterns and performance.

In simple, if NEPSE index is increasing, market is in bullish trend, investors’ confidence is increasing in the market and overall it is a good signal for the financial market. However, if the index is decreasing, market is considered to be in bearish trend and overall it shows that the market is not performing well.

IS NEPSE INDEX THE TRUE ECONOMIC INDICATOR OF NEPAL?

As observed among listed companies in NEPSE, Financial institutions and Banks are actively involved in trading of the stock whereas, stock value of industries are quite low and are not traded in bulk as compared to that of financial institutions and banks. Highest Share value is also against the name of the bank. As we know that, industries play very important role in the economy of any country, as they create real wealth, they should be actively involved in the market and that their share price should have been high. But, financial institutions and Banks are just mobilizing the existing wealth. They are not creating it. So, NEPSE Index, which is heavily biased by excessive share trading of financial institutions and banks, is not showing the correct information about the true economic status of Nepal.

 
 
 

Home | About Us | Services | Contact Us | Terms of Service

© 2008-2010 ResCon. All Rights Reserved.

All the materials present in this site are property of ResCon. Any one willing to use these materials for commercial purpose needs to have a "prior" written consent from the ResCon team.

v 1.2.3.6beta