Improvements in external sectors of the economy: Raising Symbol of Share Market

Mar Sat 2022 12:13:37

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Improvements in external sectors of the economy: Raising Symbol of Share Market

Kathmandu: The stock market closed positive on the last day of this week. It seems that the market has tried to go up by making a bottom in the label of 25 hundred. On the last day, along with the indicator, the average sales volume has also increased. On this basis, it can be assumed that the market is trying to be positive even for a short period of time. The sustainable growth of the market will be determined by the bank interest rate and liquidity conditions to be decided in the coming days.

If interest rates do not rise and the liquidity situation in the financial system gradually eases, the market will certainly be able to move in a positive direction. On Friday alone, the central bank has made public the state of the economy for the first seven months of the current fiscal year. The report indicates that the coming days will be positive. In particular, there are indications that the free flow of balance of payments deficit has stopped.

 Similarly, the stock market has been declining for a long time. The market price has become cheaper due to continuous decline. It can also be expected to attract investors. However, the market does not just continue to rise or fall. Therefore, investors need to strategize accordingly.

The last government, finance minister and regulatory bodies also seem to be more concerned about the overall economy and the stock market. The Finance Minister and the Chairman of the Securities and Exchange Board have stated that they are ready to take necessary steps for market reform. Based on these scenarios, it can be assumed that the market will gradually pick up speed.

Some are expecting liquidity in the financial system to ease as the election environment is about to begin and the tide is turning. The government is collecting adequate revenue. But the expenditure has not been commensurate with that. If the government can spend, it will help ease liquidity in the financial system.