Jan Tue 2024 02:04:28
540 views
Kathmandu. Last week, shares were bought and sold on four days in the Nepal Stock Exchange (NEPSE). In the first two days, the market index increased by 86.16 points, while the last two days decreased by 19.34 points. There has been a significant improvement in the transaction amount of last week and the transaction has been seen up to 9 billion rupees. This has brought excitement to investors. After a long time, after crossing 2200 points, NEPSE came down again. Looking at the last two transactions, it can be assumed that it is on an upward journey.
Interest rates are falling, there are no other investment tools in the financial market, liquidity is increasing, and the risk weight of mortgage loans of more than 50 million has dropped to 125 percent, so investors in shares can get loans quickly. Due to the decrease in loan interest rates, interest has become cheaper for those who take loans and invest. Banks have also provided loans more easily due to the reduction in loan defaults.
High turnover including Himalayan Re-Insurance and Sonapur Minerals has changed the trading pattern of the market. Not only that, it has been seen that even those who did not invest in the auction before. It also seems to increase the morale/self-confidence of the investors.
In the current situation, the turnover of 8-10 billion means that the atmosphere of the stock market is changing. Going from 1800 to 2200 is not a big deal. Because at one time our market reached over 3200. There is also a situation where the privilege of many companies has not changed much from 1800 to 22.
The new companies that came into the business also played a role in pushing up the index. This indicates that the index will gradually improve after not reaching much higher. It seems that investors' self-confidence has increased as the transaction amount is increasing and even those who did not invest in the auction before are investing. Investing in auctions is again done by small investors. It is normal for the market to go down and go up even when the turnover is good.
Even when the market was falling from 3200 to 1800, it did not come all at once. The decreasing-increasing sequence has been continuous. Even after the market reached 2389, the market fell again to reach 2956. As the market went down, it went up and down. Now even when the market increases, it does not increase much, it increases by decreasing.