This is an interactive blog page on the information on Nepal Stock Exchange (NEPSE) online update. This site will also contains videos and slides on lessons for learning for stock investment as well as interviews too.
SEBON had compulsorily implemented Applications Supported by Blocked Amount (ASBA) system from Shrawan 1, 2074 for public issues (IPO/FPO) and Support Microfinance Bittiya Sanstha Ltd. (SUPPORT) is the next company issuing its IPO from full ASBA services all over Nepal today Wednesday October 4th 2017. Global IME Bank (GBIME), like several other banks, has come up with online ASBA service registration of application for share with the aim to provide easy and efficient services to its customers.
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The customers can use ASBA services from either mobile banking or internet banking service without being presented at the bank and also at zero cost for the applications of IPO, FPO and Mutual Funds.
STEP 1:Open Global IME Internet Banking by clicking on the link below.
STEP 2:Position the cursor at ASBA ONLINE at top right corner as shown.
STEP 3:Click login after entering your online banking username and password as shown.
STEP 4:You will have 'Share Application Form' to enter your information details as shown as shown.
List of available public offerings along with details on the apply button of the
public offering for application submission.
STEP 5:Complete the upper portion of the form with your information into the fields as shown.
Note at the bottom the 'available balance' of your account !
STEP 6:Scroll down and complete the bottom portion of the form with your information into the fields as shown.
Read the terms and conditions in the box at the bottom, check the circle to mark your agreement and then click 'Apply' in the red box at the bottom.
STEP 7:Click 'Confirm' (or 'Edit' if incorrect) for share conformation as shown.
STEP 8:You will get a dialog box from the Global IME Bank on your screen displaying that 'A code has been sent to your registered mobile number' in green box with details as shown.
STEP 9:Enter into the 'OTP' box the 6 digit code sent to your registered mobile number and hit 'Submit' in the red box at the bottom as shown.
STEP 10:If everything goes well, you will get a 'Customer Verification' dialog box displaying 'Your account details has been verified successfully.', then hit the 'Submit Form' in the red box at the bottom as shown.
STEP 11:You will then be offered 'ASBA Receipt' dialog box with the 'PDF' icon link, click it to download your receipt as shown.
STEP 12:Finally, save the pdf ASBA receipt for your future reference as shown.
That is it! You are done!! Hope this helps & Good Luck!!!
Support Microfinance Bittiya Sanstha Ltd. (SUPPORT) is issuing 1,80,000 unit ordinary shares of its Initial Public Offering (IPO) worth Rs 1.80 crores (Rs. 18 million) to the general public starting immediately from tomorrow Wednesday October 4th 2017. The microfinance company received the approval from Securities Board of Nepal (SEBON) for issuing this IPO two months ago on Friday August 4th 2017.
The offering of the shares at worth rate Rs. 100 per unit is open initially only for 4 banking days and will close on as early as next week Monday October 9th 2014 if all shares are sold, or the closing date is extendible maximum up to next month Thursday November 2nd, 2017.
Interested investors must apply for a minimum of 50 units of this share and a maximum of up to 900 units of the share.
The microfinance company has set aside 3,600 unit shares (2%) for its employees and 9000 unit shares (5%) for the existing 11 mutual fund companies. The company is floating 1,67,400 unit shares to the general public alone.
The issue and sales manager for this IPO share is NMB Capital Ltd. in Nagpokhari, Kathmandu.
Since SEBON has made Applications Supported by Blocked Amount (ASBA) mandatory starting from mid August 2017, all the interested applicants can collect ASBA forms from all ASBA-approved banks around the nation and submit the completed forms accordingly. One can also make paperless application directly online through the participating banks as well.
The microfinance company is aiming to raise Rs. 1.80 crores through this offering. After the IPO allotment, its paid up capital will reach Rs. 6 crores from its current Rs. 4.20 crores. Its authorized capital stands at Rs. 15 crores. After this IPO sale, the promoter to public ratio of the company will be maintained 7:3 (70% by 30%).
In the fourth quarter (Q4) of the fiscal year 2073/74, Support Microfinance has earned Rs. 48.04 lakhs, with a net profit rising to Rs 48.04 lakhs from a loss of Rs. 27.49 lakhs in the corresponding time of the previous fiscal year 2072/73. It has made a profit growth of 274.75%, with its net interest income rising from Rs. 36.50 lakhs in the previous quarter to Rs. 2.65 crores in the current 4Q. It has a current reserve of Rs. 21.31 lakhs in Q4 that surges by 162.09% from its previous reserve of Rs. 34.32 lakhs.
Its non-performing loan (NPL) stands at 0.82% in Q4 from 0.38% and CD ratio at 354.93%. Its earning per share (EPS) stands Rs. 11.44 and net worth per share at Rs. 105.07.
At present, the microfinance is providing its services in 10 various districts, including, Panchthar, Tehrathum, Dhankuta, Sunsari, Bhojpur, Khotang, Udaypur, Sindhuli, Ramechhap and Makwanpur.
Provided below are Click Links for its Recent 4Q Financial Report, Company Analysis, IPO Issue Notice and Announcement Notice.
Dan Wasyluk discovered the hard way that trading cryptocurrencies such as bitcoin happens in an online Wild West where sheriffs are largely absent.
Wasyluk and his colleagues raised bitcoins for a new tech venture and lodged them in escrow at a company running a cryptocurrency exchange called Moolah. Just months later the exchange collapsed; the man behind it is now awaiting trial in Britain on fraud and money-laundering charges. He has pleaded not guilty.
Wasyluk's project lost 750 bitcoins, currently worth about $3 million, and he believes he stands little chance of recovering any money.
"It really was kind of a kneecapping of the project," said Wasyluk of the collapse three years ago. "If you are starting an exchange and you lose clients' money, you or your company should be 100 percent accountable for that loss. And right now there is nothing like that in place."
The current scenario of Nepalese economy, recent developments and stock market all are pointing at one fact: it is high time for investors to grab stocks of good companies in NEPSE.
Here are few details and updates on the market that one should consider:
An Ongoing Market Correction
The benchmark index which touched an all-time high of 1,881 points last year is now hovering over 1,530 points suggesting that the market is facing a correction. It was already expected that a correction was inevitable as the market rose significantly last year after companies floated excessive right and bonus share, however, the correction is still said to be ongoing.
Moreover, the companies whose scrip was traded at high prices are now being traded at lower ranges. Last year’s bull run can be attributed to increase in stock prices of Banking and Finance institutions leading to positive investor sentiments. As of now, data shows that insurance and Micro finance sectors are seeing a super bull. Lately, Stock prices of most of the companies have come down suggesting a good time to grab stocks of good companies.
A Growing Economy:
According to a report of World Economic Forum, a Swiss non-profit organization, Nepal has been ranked as the 3rdfastest growing economy in 2017/18 with the growth projections of 7.5 percent. The World Bank has credited the growth to a good monsoon, reconstruction efforts and normalization of trade with India. Moreover, the expected growth rate during next year is 6.5 percent.
This hints that the Nepalese economy after facing the Great April 2015 Earthquake and subsequent economic blockade by India has got off on the recovery track and is slowly growing.
However, taking a look into the GDP and the total market capitalization, the latter is far lower than the size of total GDP. It means the prospects are favorable in the stock market and market is yet to grow. With the growth in the economic activities, the companies are also expected to jump in the growth bandwagon trudging the NEPSE forward.
Moreover, due to a massive increase in capital base of the banking sector, banks are now capable of discharging huge amounts in loans. Furthermore, loan demand of the corporate and retail sectors is also increasing and with the right shape of things, those sectors are set to see an increase in their profitability.
Likewise, after the Great Earthquake, awareness regarding insurance and its importance has rose leading to an increase in the businesses of the insurance companies. Moreover, the government is also mulling over implementing a compulsory insurance policy. Thus, the insurance business is set to soar in the upcoming days and it will affect the stock market, nevertheless, positively.
Online Trading:
Recently, talks have surfaced that there is a high possibility of introduction of online trading system in NEPSE. A technological advancement of such a magnitude will surely induce a never-seen-before bull run in the market. Historical cases have shown that, technological advancements in the stock markets lowered the entry barrier to trading leading to a tremendous increase in the prices and indexes. The impact of new infrastructure was visible as NEPSE rose to a historical high with the introduction of CDS (Demat) system during fiscal year 2072/2073.
With the online trading in operation, the market will see many new investors from inside and outside the Kathmandu Valley. Moreover, Nepali citizens working or living in foreign lands can also participate in the stock market rising up the transactions and turnovers.
Declining Interest Rates:
As of now the return from dividends and share prices have outgrown the return from average deposit interests. As the rate of interest is declining continuously for the past few months, the returns from shares are higher than returns from interest. Many companies’ stock yield is more than the market interest rate. Thus, the retail and institutional investors might channel more funds in the share market if the interest rate continues to decline in the upcoming months.
Upcoming Elections:
With the conclusion of Local level election, Nepal has trudged yet another political milestone, however, things won’t stop here. The Federal Level and Central Level elections are yet to be held. With the successful implementation of the federal structure, market analysts believe that Nepal will be politically stable in the upcoming year. Political stability in the economy ensures an investment friendly environment which is expected to result in inflow of investments in the various economic sectors. With the growing economy, the NEPSE is expected to respond in favor of the investors.
Broker License to Commercial Banks:
Recently, the Nepal Rastra Bank, regulator of banking institutions in Nepal, has formed a committee to study the possibility of allowing commercial banks to act as stock brokers. As the Banks and Financial Institutions Act (BAFIA) has no provisions on barring commercial banks from offering stock brokerage services, the Central Bank is expected to give a-go-ahead to the banks.
Moreover, the Securities Board of Nepal (SEBON) has also supported the idea to allow commercial banks to operate as stockbrokers. SEBON’s Securities Businessperson Regulations 2008 has a provision allowing banks and financial institutions to offer brokerage services.
The provisions state that, “Banks or financial institutions established under the prevalent laws may conduct securities business as stockbroker, securities dealer and market maker through their respective fully owned subsidiary company.”
If this idea materializes, the commercial banks can operate brokerage departments throughout the Country which will lead to an influx of additional funds. The banks, with available resources are capable to offer services in the rural areas too and such development will help the market to grow faster.
Broker Branch Office Expansion
As per the current stats, there are 50 stockbrokers in Nepal. Moreover, 44 remote work stations were set up outside the Kathmandu Valley, but they are all based at urban areas leaving the rural markets untapped. With the expansions of broker offices in various parts of the Country the brokers will realize a business expansion leading to an increase in stock trading.
New Mutual Funds in Pipeline
Mutual funds, by pooling small investments from many investors hold diversified portfolios. They are usually equipped with ample information on the firms with good growth prospects. Moreover, mutual funds by channeling their investments influence the management of a firm to boost their performances which in turn leads to a favorable effect of firm’s stock prices. As of now, there are 5 new mutual funds in pipeline and one is set to launch IPO soon. With this the total number of Mutual funds in Nepal will rise to 17. Cases around various stock markets show that the growth in number of mutual funds has led to a growth in the overall stock market.
Margin Trading Facility to Brokers
Talks have surfaced that the government is mulling over to facilitate brokerage firms to conduct margin trading. If the plan materializes, then the investors would be able to trade with more capital than they would without the facility.
Thus, the Nepse still has a room to grow and the upcoming days signal a walk in the positive direction. However, investment in securities is subject to market risk and one must utilize his/her knowledge on the market potential and risks before jumping into investing funds.
Revival of Investor’s forum
With the recently concluded elections of the Nepal Investor’s Forum, a non-profit body working for the betterment of the stock market, the Forum is said to be revived. Moreover, the Forum’s newly elected Chairman, Ambika Prasad Poudel in an interview with ShareSansar informed that the Forum is committed to study well-developed markets and advocate the need for changing certain policies that impede our market from becoming more investor friendly. According to Poudel, the Forum will focus to bring positive changes which will result in higher level of transactions, increase in government revenue and overall development of the market.
Increasing awareness about share market among general public
Considering the recent developments and ease of trading with the Demat system, there has been a rise in number of the general public who are gradually becoming more aware about the stock market. The last years bull run have had an impact on the public psyche that investing in stocks can bring favorable returns. People from all walks of life can be seen these days in the trading platforms around Kathmandu Valley, learning enthusiastically about the market movements and future prospects. Thus, there has been a rise in the level of awareness among general public which will lead to an increased level of investment moving the market towards growth.
Disclaimer:Although the long term growth prospects in the NEPSE seem favorable to the investors. The short term scenario is quite different as market is showing volatile movements lately. Moreover, Investment in stock market is purely subjected to market risk and all the factors must be self-judged by the investors before buying stocks. Thus, one should consider this article as an aid in market analysis rather than a marketing call to invest in shares.
We hope this article helps you to firm your investment decisions and Happy Dashain 2074, Wish you a Prosperous Investing Year ahead.
Following are EIGHT various companies; microfinances, finances, banks and development banks, whose right shares have currently been open for shareholders to secure in time. Of them, KEBL, SINDU, MEGA and GFL now have only 5, 8, 13 and 13 banking days respectively; their deadline ending soon in October and hence secure immediately as early as possible, and then others in coming days.
Enlisted all EIGHT companies with every logo in chronological order of respective right share deadline date ending soon.
Clicking each logo opens complete details of respective company with additional links for individual fiscal year financial reports, analysis and right share book closure details.
Tabulated below every company logo are right share ratio, units, opening date, closing date, book closure and issue manager.
Provided below every table are web links for every right share eligibility check, links for right share open noticeas well as for full details and then web links for downloading the respective forms to print, complete and submit for the concerned shareholders.
Warren Buffett isn't nervous about a stock market bubble. The legendary investor thinks anyone betting against America is "out of their mind."
Buffett, a reliable optimist about the future of the U.S., predicted on Tuesday night that the Dow Jones Industrial Average will be "over 1 million" in 100 years. That would be roughly 45 times the Dow's current level of nearly 22,400, which is already a record high.
"Being short America has been a loser's game. I predict to you it will continue to be a loser's game," the Berkshire Hathaway chairman said. Buffett was speaking at a New York event commemorating the 100th anniversary of Forbes magazine. His comments were previously reported by Reuters.
Buffett, whose fortune Forbes pegs at $78 billion, realizes he won't be around to see if his Dow prediction comes true. The 87-year-old billionaire said he gets "excited" just when people talk about him making it to 100.
So is Buffett's Dow 1 million call just crazy talk? Maybe not.
With the approaching Dashain festival; the stock market is seeing a lack of trading fervor. After weekly trading resumed on Sunday, the NEPSE saw a fall of 2.89 points to close at 1536.92 points.
Out of the nine trading groups, four saw their indices turning red with the trading sector losing the most of 15.29 points. On the other hand, Hotel sector posted a gain of 37.64 points.
Stockbrokers have attributed the current fall to the lack of transactions in the market because of ongoing Dashain festival. “Majority of investors have taken a break from the market and are traveling,” said Raman Pant, Managing Director of Creative Securities, “The low level of transactions explains the lack of trading fervor in investors during festivals.”
As of Sunday, the market posted a total turnover of Rs 31.52 crore with 991,336 shares being traded.
