Why Bhutanese stock market is not doing well? | Economy of Bhutan 2025

https://thebhutanese.bt/most-fis-do-w...

Hello everyone! Just a quick heads-up before we dive in — I'm not a financial expert or advisor. Everything I share here is just based on my personal research, opinions, and interest in the stock market. Please do your own research or talk to a certified financial advisor before making any investment decisions.
So I have been observing the red colors on the RSEB page in facebook for quite sometime and it was interesting as I was expecting it to rise as it the season where the companies announce their bonus and dividends. It is just going the opposite I expected and seems like if you draw a graph in this few weeks it might show a Bear market sign which is usually a not good thing for investor but that is upto financial experts to conclude.
So why are we seeing a dip in stock market these days. Can it be due to tariff wars? Can be as in. In 2024, Bhutan's largest export to the U.S. was ferrosilicon, valued at Nu 366.095 million. So that’s the red for FS companies
I also came across the article written by Bhutanese where it shows financial companies are not doing well compared to last year except BOB and NPPF. Whch does suggest our economy is not doing well
So what is a financial institution and what are the current financial companies we have in our country.
"Financial institutions" basically means companies or organizations that deal with money — especially ones that help people or businesses save, invest, borrow, or manage their money. This include the • 🏦 Banks – where you deposit money, get loans, or open savings accounts.
• 💳 Credit Unions – similar to banks but usually member-owned.
• 💼 Investment Firms – help people invest in stocks, bonds, etc. (like Fidelity, Vanguard).
• 🏢 Insurance Companies – manage risk and offer things like life, health, or property insurance.
• 💰 Brokerages – platforms or companies where you can buy/sell stocks and other investments (like Robinhood, Zerodha).
• 🏦 Central Banks – like the Federal Reserve (U.S.) or RBI (India); they control money supply and interest rates.

So in our country we have banks which are Bank of Bhutan, Bhutan National Bank, BDBL, PNB, Tbank
Insurance companies which are RICB, BIL and GIC-B reinsurance
We have NPPF as non bank financial institution
Out of the institution only BOB and NPPF has gained more profit than last year thanks to than being government owned entity
Rest have lesser profits than last year.
Looking at the stock market performance RICB issued 35.24% dividend last year compared to 33.19% this year
BIL issued 21% dividend last year compared to 18.5% this year and same thing has happened for other financial insitition except for GICB which we see an increase in dividend
The reason quoted in the article of Bhutanese was slump in tourism numbers, loan moratorium on the housing loan and large NPLs. I always thought people moving overseas to work will help the economy but it seems to be otherwise because the remiitances a country can get seems to be relatively smaller than the capital loss it faces when it losses its human resources aka brain drain.
So the question show we invest in the market when the market is not doing good. That will be yes and no. No if you are a short term investor because if the economy will not do well we might see a recession and worse come to worse we might see a depression. And yes if you are a long term investor and you have a government which you trust will make things happen.

So if you want to know how Bhutan can improve its economy. Financial experts have given their thoughts. you can read that in Bhutanese article. The link is given down below.