June 28: On May 25, the stock market index of the hotel and tourism group was 3,430.84 points. A month later, on June 27 (Tuesday), the index of this group climbed to 5,838.62 points. This is 70.18 percent more than a month ago. Out of the 13 trading groups, this group’s index has increased the most in the last one month.

Why is the attraction towards hotel business increasing?

After the coronavirus pandemic subsided, the tourism industry started to pick up pace gradually. The companies in the hotel and tourism business are currently making profits. That is why investors are investing confidently in such companies. As a result, the share price of this group of companies has increased at a high rate.

Non-life insurance group

During the review period, the index of non-life insurance group has increased the most after hotel and tourism sector. In other words, during this period, the investors are attracted towards non-life the insurance companies after the hotel and tourism group.

During this period, the index of non-life Insurance companies increased by 36.05 percent. On May 25, the index of this group was 8,452.68, but after a month, it reached 11,499.79 points on June 27.

The attraction of investors towards this group of companies has increased after the insurance companies started to increase their capital. Some of the insurance companies have merged to increase their paid-up capital.

The companies that have not maintained the paid-up capital requirement set by the regulatory body will have to meet the requirement by issuing rights and bonus shares.

According to the minimum limit set by the Nepal Insurance Authority, the paid-up capital of non-life insurance company is Rs 2.5 billion and life insurance company is Rs 5 billion.