FAQ
NI 31
There was no definitive list of companies comprising the NI 31, as it is not an official benchmark. The companies typically shared these characteristics; strong balance sheets, consistent growth. List of companies on NI 31 are:
COMMERCIAL BANK
- Nabil Bank Limited
- Nic Asia Bank Limited
- Siddhartha Bank Limited
- Sanima Bank Limited
- Prime Commercial Bank Limited
DEVELOPMENT BANK
- Muktinath Bikas Bank Limited
- Garima Bikas Bank Limited
FINANCE
- Manjushree Finance Limited
- ICFC Finance Limited
HOTEL & TOURISM
- Oriental Hotels Limited
HYDROPOWER
- Sanima Mai Hydropwer Limited
- Arun Kabeli Power Limited
- Ru Ru Jalbidhyut Pariyojana Limited
- Butwal Power Company Limited
- Chilime Hydropower Company Limited
LIFE INSURANCE
- Surya Life Insurance Company limited
- National Life Insurance Company Limited
- Asian Life Insurance Company Limited
NON LIFE INSURANCE
- Shikhar Insurance Company Limited
- Neco Insurance Company Limited
- Premier Insurance Company (Nepal) Limited
MICROFINANCE
- Nic Asia Laghubitta Bittiya Sanstha Limited
- National Microfinance Bittiya Sanstha Limited
- Deprosc Laghubitta Bittiya Sanstha Limited
- Chhimek Laghubitta Bittiya Sanstha Limited
- Global IME Laghubitta Bittiya Sanstha Limited
TRADING
- Salt Trading Corporation
OTHERS
- Nepal Doorsanchar Company Limited
MANUFACTURING AND PROCESSING
- Himalayan Distillery Limited
- Shivam Cements Limited
INVESTMENT
- Citizen Investment Trust
| S.N | Sector | Count | Wt | 31*Wt | Market Cap Count | Wt | 31*WT | Average | No of Stocks |
|---|---|---|---|---|---|---|---|---|---|
| 1 | Commercial Banks | 23 | 11.73% | 3.64 | 1,147,870.10 | 32.22% | 9.99 | 6.81 | 5 |
| 2 | Development Banks | 16 | 8.16% | 2.53 | 172,955.09 | 4.86% | 1.51 | 2.02 | 2 |
| 3 | Finance | 15 | 7.65% | 2.37 | 68,800.89 | 1.93% | 0.60 | 1.49 | 2 |
| 4 | Hotels and Tourism | 4 | 2.04% | 0.63 | 54,098.06 | 1.52% | 0.47 | 0.55 | 1 |
| 5 | Hydro Power | 45 | 22.96% | 7.12% | 389,349.81 | 10.93% | 3.39 | 5.25 | 5 |
| 6 | Investment | 6 | 3.06% | 0.95 | 274,297.43 | 7.70% | 2.39 | 1.67 | 1 |
| 7 | Life Insurance | 12 | 6.12% | 1.90 | 323,008.12 | 9.07% | 2.81 | 2.35 | 3 |
| 8 | Manufacturing And Processing | 6 | 3.06% | 0.95 | 150,939.61 | 4.24% | 1.31 | 1.13 | 2 |
| 9 | Microfinance | 47 | 23.98% | 7.43 | 363,415.82 | 10.20% | 3.16 | 5.30 | 5 |
| 10 | Non Life Insurance | 18 | 9.18% | 2.85 | 235,300.16 | 6.61% | 2.05 | 2.45 | 3 |
| 11 | Others | 2 | 1.02% | 0.32 | 367,369.00 | 10.31% | 3.20 | 1.76 | 1 |
| 12 | Trading | 2 | 1.02% | 0.32 | 14,782.62 | 0.41% | 0.13 | 0.22 | 1 |
| 196 | 3,562,186.71 | 31 |
| Allocation | ||
|---|---|---|
| BFI | 14 | 45.16% |
| Insurance | 6 | 19.35% |
| Investment | 1 | 36.26% |
| Real Sector | 10 | 32.26% |
| 31 | 100.00% | |
The companies are selected based on Rank. The rank is calculated based on 80% of Average Rank of Q1 to Q4 of all the stocks from different parameter like asset size, earnings, growth,health etc and 20% of Sharpe Ratio of last 2 years of the stocks. Those company who gives the higher
rank is selected from the particular indices as per allocation.
For Example
5 Socks to be selected from commercial bank as per allocation.
| S.N | Name | Symbol | Sector | Average Rank | Sharpe Ratio | Wt |
|---|---|---|---|---|---|---|
| 1 | Nabil Bank Limited | NABIL | Commercial Bank | 3.19 | 1.32 | 2.81 |
| 2 | NIC Asia Bank Ltd. | NICA | Commercial Bank | 3.11 | 0.78 | 2.65 |
| 3 | Siddhartha Bank Limited | SBL | Commercial Bank | 2.77 | 0.76 | 2.37 |
| 4 | Sanima Bank Limited | SANIMA | Commercial Bank | 2.84 | 0.27 | 2.33 |
| 5 | Prime Commercial Bank Ltd. | PCBL | Commercial Bank | 2.72 | 0.61 | 2.30 |
| 6 | Agricultural Development Bank Limited | ADBL | Commercial Bank | 2.62 | 0.52 | 2.20 |
| 7 | Global IME Bank Limited | GBIME | Commercial Bank | 2.47 | 0.64 | 2.11 |
| 8 | Nepal Bank Limited | NBL | Commercial Bank | 2.41 | 0.78 | 2.08 |
The above first 5 stocks are selected from commercial bank sub-indices because it has highest rank from the commercial bank sub-indices.
The NI 31 is calculated by multiplying NI 31 value and Average Price Relative of 31 stocks. The index start point is taken as 2572.26 as on March 27, 2022.
Example
NI 31 value as on March 27 is 2572.26
Average Price Relative of 31 Stocks as on March 28, 2022 is 0.9851
NI 31 value as on March 28, 2022 end =2572.26*0.9851=2533.93.
Basically the NI 31 is price relative value. So the price adjustment after dividend and right is adjusted during calculation of Average Price Relative of 31 stocks.
The NI 31 is rebalanced on annual basis based on the fundamental indicator and ranking basis. Also, Whenever the company transaction is halt due to merger and acquisition then the next company preceding such company will be chosen according to the parameters.