2020-08-22

Stock Market in Nepal

Table of Contents

1. Primary Market

New stocks to the public are offered for the first time directly through public

  • IPO (Initial Public Offer) One share in Rs. 100
  • FPO (Follow on Public Offer) When Company does good e.g. chilime offered FPO at Rs. 400
  • Book Building/bidding (Offering through bids; securities board of nepal just issued this type of sytem in Nepal) => For good companies initial stock of 100 is low, so through bidding they sell at high value at the beginning

Book Building is said for new company, FPO is for older companeis (that have already done IPO).

2. Secondary Market

stock market.png

In Nepal, NEPSE is secondary market.

3. How to enter

how to enter.png

  • DEMAT account ma share rakhinxa
  • C-ASBA
  • BROKER ID (for secondary market)

4. Investment in share market

  • Investment shoud be done in undervalued company to gain maximum profit

Investment analysis has to be done

4.1. Fundamental Analysis

fundamental analysis.png

  • EPS < 1 => company faida ma xaina Right now some hydropower have EPS -ve
  • P/E high implies overvalued
  • Higher Book value is better
  • Dividend history => history of how much share & cash the company gives e.g. Uniliver 1000% dividend dinxa. very good.
  • Net worth per share
  • Non performing load (NPL) of BFI (bank or financial institution) how much loan haven't they cleared
  • Board of Members of Company e.g. NEA is in profit due to Kulman

4.2. Technical Analysis

technical analysis.png

  • Historical chart and market statistics analysis garera

Nepal ma NEPSE index 1200 tira puge kinne 1600 tira puge bechne

  • Bollinger bands
  • RSI index
  • MACD index

problems.png

  • share kineko 4/5 days samma bechna mildena
  • online service ramro xaina
  • capital market of nepal is fully centralized in Kathmandu Valley

5. Mutual Fund

They collect funds from use and invest in stock and give us some % of profit as return

6. Notes

  • Book Building ?
  • C-ASBA
  • P/E ratio

7. Agriculture field

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  • previously agriculture was open field agriculture. aile field area ghatdai gayeko hunale.

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