The shares listed in Best Shares to Buy in Nepal is not an objective list, as the best shares to buy can be different according to your goals and your targets. For example, are you planning to buy for short or long term, are you planning to buy for dividends or capital gain. So, first before trying to find what a best shares to buy is, first make your goals clear. Why do you want to buy shares?
Current Market Summary
As of writing this post (30th September 2022), NEPSE Index had closed higher in the previous week then the week before. This week, the index has decreased. This week NEPSE has closed at 1838.96 points. There is a 3.74% decrease from last week’s closing. Last week NEPSE had closed at 1910.38 points. Oh Thursday(22nd September) the market turnover was at Rs.655 million & the market capitalization was at NPR.2.64 trillion.
The market turnover had been gradually decreasing throughout this week. None of the sub index increased in comparison to the last week. Hydropower decrease the most with a drop of -6.73%. Hotels & Tourism dropped the least with -1.92%.
Now let’s see how we have selected the “Best Shares to Buy In Nepal Today“. As mentioned, this list can be subjective according to your goals, and hence we have categorized the best shares to buy in Nepal in the following categories:
- For Long Term
- For Short Term
- For Dividends
- For Growth(Capital Gain)
To buy a stock, we look at various like P/B Ratio, P/E Ratio, ROE, Profit, Growth, Debt, Dividend History and many more financials. If you are not sure what these mean, or how to understand these values/terms, check out: Choosing Best Shares to Buy
This is supposed to be an educational post with a general idea on how to buy shares according to your goals or targets. This article will hopefully help you to find and read different factors that are import when you’re choosing which shares are best for you to buy. So let’s look into the best shares to buy in Nepal today.
So let’s just into the list of best shares buy according to what your goals are. If you have any questions, feel free to ask them in the comment section.
Commercial banks have decided to increase interest rates from Aswin. Bank interest rates and stock market are inversely related, that means if bank interest rates rise, the market goes down. This can be due to two reasons. a) If the loan interest rates are high, less people will be willing to loan out money to put in the stock market. b) If the bank is paying high interest rates, as the banks are doing right now, people are more inclined to play safe bets with guaranteed returns from bank rather than risking money in a volatile market.
In the short term, NEPSE has already broken an important technical support level of 1900-1910 and 1886. I think that there is a high probability of market will down 100 points further. The market could soon test the 1800 level too.
The next immediate support level seems to be 1806 and the other important support level for the midterm is 1661.
However, the charts shows RSI divergence and after the extreme panic observed this week, we can expect some cool-off in the market. Right now, it’s seems like a certainty that the market will test 1800 level. If you’re interested, you can take trades at the 1800 level, but make sure you have a stop loss level predefined.
But overall, I think the market can dwindle further downward in the coming next weeks to touch the support levels mentioned above. Therefore, I would recommend to not trade for short term as of now.
You might also like:
Banks with Highest Fixed Deposit in Nepal
In Nepal, most of the market capitalization in made up of Banks. Generally A Class banks and good development banks are safe for long term bets. However, if it’s safe, it’s reward is usually not very high. We can also invest in good companies that have a higher growth potential. Here we will list some “safe bets”, and some “undervalued/growth bets” which may rise in the future. We should not put all our eggs in the same basket, and have a mix of both safe, and growth companies in our portfolio.
Over a longer period, the market always rises. So the current condition can be though of as a sale of good, value stocks. Below I’ve listed a list of companies that are good, and have good growth scope or provide high divided that are almost sure to benefit you in the long term. Let’s check them out.
The companies listed below are from industries like, Banking, Insurance, Hydropower and others.
You can learn how to choose the best shares to buy according to their fundamentals here: Choosing Best Shares to Buy
| S.N | Company Name | EPS | P/E Ratio | ROE | LTP |
|---|---|---|---|---|---|
| 1 | Nabil Bank Limited [NABIL] | 21.78 | 35.81 | 13.13% | 780 NRs |
| 2 | NIC Asia Bank Limited [NIQ] | 39.13 | 15.80 | 19.64% | 618.3 NRs |
| 3 | Muktinath Bikas Bank Ltd [MNBBL] | 24.22 | 17.24 | 18.42% | 417.5 NRs |
| 4 | Himalayan Distillery Limited [HDL] | 69.50 | 47.77 | 44.38% | 3320 NRs |
| 5 | Shikhar Insurance Company Limited [SICL] | 17.56 | 34.04 | 11.70% | 714 NRs |
| 6 | Butwal Power Company Limited [BPCL] | 8.13 | 36.42 | 3.78% | 296 NRs |
You might also like:
Systematic Investment Plan in Nepal
| S.N | Company Name | Bonus Share | Cash Dividend | Total Dividend |
|---|---|---|---|---|
| 1 | Himalayan Distillery Limited [HDL] | 75% | 25% | 100% |
| 2 | Jeevan Bikas Laghubitta Bittiya Sanstha Limited [JBLB] | 70% | 3.68% | 73.68% |
| 3 | Mahila Laghubitta Bittiya Sanstha Ltd. [MLBSL] | 47.5% | 2.5% | 50% |
| 4 | Manjushree Finance Ltd. [MFIL] | 40% | 6% | 46% |
| 5 | National Microfinance Laghubitta Bittiya Sanstha Ltd. [NMFBS] | 40% | 5% | 45% |
You might also like:
Top Dividend Paying Companies in Nepal
| S.N | Company Name | Sector | LTP | P/E Ratio |
|---|---|---|---|---|
| 1 | Nepal Infrastructure Bank Limited [NIFRA] | Investment | 170 | 40.42 |
| 2 | Macchapucchre Bank Limited [MBL] | Commercial Banks | 223 | 12.06 |
| 3 | Siddhartha Bank Limited [SBL] | Commercial Banks | 291 | 12.75 |
| 4 | Agriculture Development Bank Limited [ADBL] | Commercial Banks | 270.1 | 12.99 |
| 5 | Sanima Mai Hydropower Company [SHPC] | Hydropower | 254.50 | 14.55 |
You might also like:
Top Shares to Make you Rich
Conclusion
NEPSE index has been going down steadily for the last few weeks, it seems imminent that it will soon test the 1800 support level, with 1600 being the next major support level. Right now active trading is not suggested, however for long term you can get many good shares at a discounted price. The best strategy right now would be to invest 50% of your total investing capability every month in good blue chip stocks for long term. Doing this every month will help with averaging if the price decreases even further. Right now, cash looks to be king hence, you can save 50% in a high interest paying bank account, NICA is paying upto 9% on just a normal saving account right now.
Overall, what shares are best for you to buy depends on you specific needs and goals, I hope this guide has helped you on how to pick shares that suit your needs best, be it dividend or capital gain. If you have any issues and are confused on what shares are best to buy, feel free to question in the comment section below.
