STOCK MARKET

Presented By:Ayush Nepal

Nepal Stock Exchange (NEPSE)• Founded – 1993• NEPSE opened its trading floor on 13 January 1994.• Number of listed companies – 370.

• Includes Commercial Banks, Hydro Power Companies, Insurance Companies and Finance Companies among others.

• Has 50 registered brokers as of April 2013.• The NEPSE Index is primary all equity market index of

NEPSE.• It is regulated by the Securities Board of Nepal.

Market DepthWhat it is?

• The market for a stock is "deep“ means, there will be a sufficient volume of pending orders on both the bid and ask side, preventing a large order from significantly moving the price. 

How it Works?• Market Depth measures the number of units that must be

traded before a stock or bond's price moves.Market depth (M) = ƒunction of buy order to sell order

and liquidity of issuing company.Why it matters?

• Stocks that display consistently high levels of market depth do not require market makers to facilitate or supplement the volume of buy and sell orders.

Factors Influencing Market Depth• Tick Size: Tick size is the minimum price increment at

which trades may be made on the market.• Price movement restrictions: Most major financial

markets do not allow completely free exchange of the products they trade, but instead restrict price movement in well-intentioned ways. (NEPSE Circuit Breaker).

• Allowable leverage: Major markets and governing bodies typically set minimum margin requirements for trading various products.

• Market transparency. Latest bid or ask price is usually available for most participants, additional information about the size of these offers and pending bids or offers that are not the best are sometimes hidden for reasons of technical complexity or simplicity.

Dominant Players of NEPSE

Sharp Practices• Use of “Rat Trap” such as: Charge you nothing upfront,

but trap you into large fees - tens of thousands of pounds - to be paid even if your business doesn't sell.

• They'll give you whatever valuation they feel will persuade you to sign up with them.

• They'll give you the impression that no upfront fees means you risk nothing (but there's a real and very considerable danger to your business that they won't disclose).

• They will claim to have a large database of eager buyers or one buyer looking urgently for a business just like yours (both of which claims they know you can't verify).

SEBON – The Market Regulator

Functions, Powers and Duties

• To assist in the execution of the Policy and Program of Government of Nepal in respect of Securities and Capital Market.

• To formulate and implement professional code of conduct to be observed by Securities Market and Securities Entrepreneurs in order to maintain investor's interest and market fairness.

• To formulate and implement good governance code to be observed by the body corporate which registers and lists the Securities for the good governance of organized sector.

• To develop regional and international relations by obtaining the membership of regional and international organizations or authorities relating to Capital Market.

• To effect other works as may be required for the regulation and development of Capital Market.

Nepal Stock Exchange (NEPSE)

• No. of listings 370 (Scrips)• Market Cap: US$ 11.93 Billion (2/24/2016)• Indices NEPSE index• Dominant Companies

• Chilime Hydro Power Company Limited• National Hydro Power Company Limited• Citizens Bank Limited• Sanima Bank Limited• Butwal Power Company Limited

Market CapitalizationCompany Volume High Low Market

Capitalization (Rs.)

CHCL 97,255 1534 1400 41.70 billion

NHPC 441,368 212 195 2.94 billion

CZBIL 104,588 846 832 25.53 billion

SANIMA 82,997 940 925 28.43 billion

BPCL 79,830 739 693 12.49 billiom

NLIC 10,022 3900 3840 67.19 billion

NBB 48,935 740 725 22.17 billion

Nepal (NEPSE)Company Volume Last Price

(Nrs)CHG (%)

CHCL 97,255 1,534 + 9.68

NHPC 441,368 212 + 8.72 %

CZBIL 104,588 833 - 0.60 %

USA (NYSE)Company Volume Last Price

(Nrs)CHG (%)

BAC 45,770,382 1,483 - 0.336 %

CLF 32,283,561 419 + 36.482 %

CHK 18,347,173 438 + 5.168 %

India (NSE)Company Volume Last Price

(Nrs)CHG (%)

TATAMOTORS 110,744,326 728.96 8.15%

SUNPHARMA 15,706,495 1,219.20 - 6.17 %

TATAMTRDVR 16,105,059 500.80 11.21 %

Nepal (NEPSE)Company Volume Last Price

(Nrs)CHG (%)

CHCL 97,255 1,534 + 9.68

NHPC 441,368 212 + 8.72 %

CZBIL 104,588 833 - 0.60 %

China (SSE)

Company Volume Last Price (Nrs)

CHG (%)