The nation’s capital market recorded a sharp increase in trading volume in July 2026, with 902,661 shares changing hands, up 70.43 percent from the 529,630 shares traded in June, even as the overall number of executed trades and active users declined during the month.
Latest figures from the Royal Securities Exchange of Bhutan Ltd. (RSEBL) present a mixed picture of market activity. While the total volume of shares traded rose significantly, the total value of transactions increased by only 9.04 percent, suggesting that much of the additional trading activity was concentrated in lower-value transactions.
The exchange recorded Nu 29.62 million in total trading value in July, compared with Nu 27.16 million in June. This represents an increase of about Nu 2.45 million.
At the same time, the number of executed trades fell from 2,675 in June to 2,388 in July, a decline of 10.73 percent. The number of registered market users also dropped from 577 to 545, or 5.55 percent, while the number of listed securities traded decreased marginally from 17 to 16.
The contrasting movement between trading volume and transaction frequency indicates that July’s market activity was driven by larger volumes of shares changing hands rather than a broader increase in the number of individual transactions.
The sharpest movement in July was in the number of shares traded. The 902,661 shares recorded during the month were 373,031 shares more than in June. However, the relatively modest 9.04 percent rise in total transaction value suggests that the additional shares traded did not translate proportionately into higher market turnover.
This divergence is important for assessing the health and depth of Bhutan’s relatively small equity market. Higher trading volume can indicate increased liquidity, but the decline in executed trades and users suggests that the July increase was not necessarily accompanied by broader participation.
The June market, by comparison, showed stronger growth across a wider range of indicators. Trading value increased by 35.43 percent from May to June, while executed trades rose by nearly 73 percent and market users increased by more than 32 percent.
July therefore presents a different pattern: higher share turnover but narrower participation.
Buying activity also softened in July compared with June. Investors purchased 426,750 shares worth Nu 15.99 million during July, compared with 435,369 shares valued at Nu 21.43 million in June.
The number of shares purchased declined by only 1.98 percent, indicating that the volume of buying remained relatively stable. However, the value of those purchases fell by 25.37 percent.
The number of users involved in buying also declined from 471 in June to 435 in July, a reduction of about 7.64 percent. The figures suggest that investors continued to buy shares in significant volumes, but the purchases were, on average, of lower value than those recorded in June.
Selling activity moved in the opposite direction during the month. Shares sold increased from 384,452 in June to 448,000 in July, representing a 16.53 percent increase. However, the value of those sales declined from Nu 19.92 million to Nu 15.14 million, a fall of approximately 24 percent.
The July figures therefore show a similar pattern on the selling side: considerably more shares were traded, but the total monetary value was lower.
This could indicate greater activity in lower-priced securities or larger volumes of shares being traded at relatively modest prices. However, the RSEB figures provided do not identify the individual securities or transactions responsible for the increase, making it difficult to determine the precise cause.
The July performance highlights an important distinction between market volume and market participation. A market can experience a substantial increase in the number of shares traded without a corresponding increase in the number of investors or transaction value. In July, the number of users declined by 5.55 percent and executed trades by 10.73 percent, while share volume jumped by more than 70 percent.
By contrast, June showed a stronger broad-based expansion, with more users, more trades, more listed securities being traded and significantly higher buying activity.
Despite the mixed indicators, July’s performance demonstrates continued liquidity in Bhutan’s capital market. Nearly 0.9 million shares were traded during the month, while transaction value remained close to Nu 30 million.
The figures also show that investor participation remains substantial, even though the number of active users declined from the June level.
The comparison between June and July also illustrates why trading value, share volume, number of transactions and investor participation need to be considered together when assessing market performance. June was characterised by broad-based expansion, while July was marked by higher share turnover but lower participation and transaction frequency.
Overall, July’s market results point to a capital market that remains active but whose growth is becoming more uneven—raising the importance of attracting a wider investor base and ensuring that increased trading volume is accompanied by stronger participation and liquidity across the market.
Tashi Namgyal, Thimphu
