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In the USA, S&P 500 reached a new record at 5,260.34 points. Our Bhutan Stock Index (BSI) too reached a new record at 1,519.50 points.

BSI was started on 31-12-2019 at 1000 points. So, more than 50% gain in 3 years. Stock market rises in long-run.

It may continue moving even higher as companies declare dividends and buy orders keep increasing.

Increasing index usually means market is optimistic and doing well. Does it mean Bhutan Stock Market is doing well?

Components of Bhutan Stock Index

All these counters listed in RSEBL are components of Bhutan Stock Index (BSI). Since it’s an average of all, change in one will also change it.

However, even a small change in some can lead to a noticeable change in BSI as the impact depends on their share in BSI.

Nu. 5 changes in DPL won’t impact BSI as much as Nu. 1 change in BNBL would do. You got the logic.

Did Bhutan Stock Market Do well?

If we look at the BSI (an overall average), stock market looks precariously at a peak, overbought, and expensive.

But it is just like our inflation rate standing at 4.53% but a sack of rice still costing same or didn’t increase by 4.53%.

If you look at individual stock, they barely moved. Yet in overall, a change in BSI graph isn’t small.

To take advantage of this game, we have to invest huge but it’s also risky. In other countries, they have index fund or ETFs.

What do you think of this increasing market index? Do you wish we also had an index fund?