On the basis of market capitalization on the day when NEPSE reached its highest point of 1888 on July 27, 2016, amount invested by investors on purchasing additional shares after the date totaling Rs 260 billion and the current market capitalization of Rs 1567 billion, investors apparently lost Rs 693 billion during the period.
In the FY 2072/73, a total of 229 companies were listed in NEPSE with 3.64 billion units of listed shares. At present, a total of 234 companies are listed in NEPSE while 4.18 billion units of shares are listed. The market capitalization during that period was Rs 1890 billion while that is at Rs 1567 billion. The NEPSE index also decreased to 1259 point from earlier 1718 point.
On the plain sight, although the number of shares has increased, overall market capitalization has decreased by 323 billion during the period. Moreover, the NEPSE index drops by 459 points during the period.
The above table shows the total amount of stock trading at the end of the FYs and average daily trading. In FY 2073/74, the listed companies issued new shares worth Rs 1.01 billion including IPO, FPO, bonus, right and mutual fund unit and collected Rs 74 billion in the capital. In FY 2074/075, the number of shares increased by Rs 1.32 billion and capital increased by Rs 81 billion. Similarly, in FY 2075/76, the market added new shares of Rs 1.17 billion and capital increased by Rs 58 billion.
In these three years, the stock market added new shares of Rs 200.13 billion that increased to Rs 260 billion if IPO and FPO included.
Despite the huge loss, the investors still have huge hope in the domestic stock market. They are still optimistic about the windfall gain they might get once NEPSE takes a big leap.
