Why Declining share Market in Nepal ? What effect it capital market

Mar Fri 2021 08:26:55

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Why Declining share Market in Nepal ? What effect it capital market

Kathmandu. The assets of stock market investors have declined by Rs 2.5 trillion in the last two weeks. The value of assets of scrips listed on the Nepal Stock Exchange fell by Rs 250 billion in 15 trading days to below Rs 34 trillion.

Share turnover fell by more than Rs 18.5 billion

The total market capitalization of the stock market had reached Rs 36.38 billion on March 25. In the last trading session on Wednesday, such capitalization has dropped to Rs 3387.33 billion. That's down about 6.90 percent.

While the market capitalization was at its highest point, the market index Nepse had reached 2640 points. At present, such indicator has reached 2,458 points.

As the stock market is declining, the transaction amount is also slowing down. The turnover was over Rs. After that, the market has stopped supporting the transaction amount.

Experts explain the decline in both market and transaction amounts in two ways. One side views it positively. Declining trading when the market declines means that investors are unwilling to sell shares at a lower price. This means that the confidence of the investors holding the shares has not been lost.

Analysts do not rule out the possibility that the market will take a downward path as the market has seen political ups and downs and the market index has doubled in a year. However, looking at the prices of companies in the market, the market is not declining. Because the market value of the most profitable company is still cheap.