kalyanshrestha

Capital Market of Nepal

This site is designed for Nepalese capital market investors. Though Nepali capital market is not so vast and still in its infancy this scribe is of the view that this site will try its best to guide the investors by providing or posting relavant articles, latest updates of companies and relavant links to companies etc.

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Kalyan Gopal Shrestha

Seven tips to earn profit by investing in stock market

By Kalyan Gopal Shrestha

Planning to go into stock market investment? Here are some general tips .

1. Understand the basics of economics.

The stock market follows the laws of economics, particularly the law of supply and demand. If there is a greater demand for the stocks of a particular company, the price of its stocks will go up accordingly. On the other hand, if there are more stocks available for selling (more sellers) than stock buyers, the unit price of that company's stocks will go down.

2. Study your prospective company/ies.

Read up on the company's profile: products, services, operations, and track record in the business. This is important to assess the company's stability and capability to deliver its promises and meet its profit targets.

3. Choose companies that are more likely to stay.

With so many existing companies in the stock market, choosing becomes a big challenge for beginners. Government-owned companies and businesses are relatively stable, unless there is a political revolution in the horizon. Telecommunications and gasoline companies are also stable and profitable since the demand for these products and services is constant. Although IT companies are the fastest growing in the market today, be careful because there are so many of them that it checking on their profiles could be very taxing. Choose IT companies that have proven track records of profitability and stability of at least 10 years.

4. Always read and watch the news.

Dealing with the stock market is not a guessing game. Sound decisions and good intuition are results of constantly learning about the local and global political and economic happenings. Give particular attention to the industry where your company belongs. Even stable companies can suddenly go bankrupt or experience a big blow that can bring them down. Remember Enron?

5. Spread your investments.

Avoid investing in just one company. If all your stocks are concentrated to one company, the chance for loses is also greater. Spread them out so that earning investments can cushion those investments that earn less.

6. Do not rely solely on stock brokers.

Do your homework. Remember, the stock broker is "gambling" with your money. When an investor does not understand how the stock market works, he/she becomes vulnerable to scrupulous brokers.

7. Do not be greedy.

Although stock market investment is all about profits, becoming greedy will make an investor lose his/her better senses. He/She might suddenly forget to check on economic rumors and decide right away to buy or sell thinking that he/she would make big profits by doing so.

WEEKLY SHARE UPDATE: Nepse continues bullish trend

Himalayan News Service

Kathmandu, May 12:

Due to a better performance of commercial banks, stock trading at Nepal Stock Exchange (Nepse) continued to register growth yet another week. The share trading closed higher, as its index posted a growth of 3.29 points this week.
The stock trading is on a rising trend since mid-April and this week the trading closed at 518.28 points.
The weekly trading report shows that its the index closed at 518.28 points on Thursday from the opening 514.99 points on Sunday. The Nepse floor opened for five days under a regular lot and the trading registered growth on all days with its index at 516.14 points on the second day, 517.42 points on the third day and 518.62 points the fourth day. However, it contracted to 518.28 points before closing on Thursday.
The weekly turnover also increased this week to Rs 138.6 million with 2,78,539 unit shares having been traded through 2,398 transactions during the week. A total of 170,860 unit shares worth over Rs 85 million were traded through 1,717 transactions. Out of the total 73 listed companies for share trading, 66 companies saw their transactions this week.
The groupwise share trading analysis shows that the major groups including commercial banks continued to grow with the others group bouncing back with a huge growth. The hotel, development banks, and trading groups also registered growth.
Among the gainers, the commercial banks group, which is the largest scrip by volume, posted a growth of 3.56 points. The group’s index closed at 561.30 points from the opening 557.74 points. The group had gained over eight points last week.
Likewise, the others group bounced back with a huge growth of 25.31 points and closed at 696.07 points. Last week’s loser, the group began its trading at 670.76 points.
The hotel group, another loser last week, also posted a growth of 5.67 points. The group’s trading opened at 229.60 points on Sunday and closed at 235.27 points. The trading group, a slow mover, surprisingly registered a growth of 6.50 points, as its index closed at 155.21 points from the opening 148.71 points.
The development banks group’s index closed higher at 444.11 points on Thursday from the opening 441.60 points.
On the other hand, the insurance group suffered a major blow, as its index plummetted by 13.58 points. The group opened its trading at 561.97 points on Sunday and closed down at 558.39 points.
Likewise, the finance group suffered a loss of 7.99 points, as it settled down at 435.71 points from the opening 443.70 points. The manufacturing group, however, remained constant at 329.42 points, as it had not a single trading throughout the week.
The commercial banks group continued to dominate the market, as it captured the majority of total share trading. The group cornered 57.79 per cent of the total trading, while the others group came second with 20.83 per cent. The finance group grabbed 10.46 per cent, the development banks group had 7.37 per cent, and the insurance group bagged 1.85 per cent share.
Siddhartha Bank Ltd topped all other companies for having the largest value and number of shares traded for the week.
The bank’s 36,210 unit shares exchanged hands at Nepse floor at Rs 23,678,410. But Sanima Development Bank stood first in the number of transactions with 473 transactions.