Why The Share market declined by 104 points Again ?

Sep Wed 2021 07:34:25

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Why The Share market declined by 104 points Again ?

Kathmandu. NEPSE fell by 44 points on Tuesday and by 60 points on Wednesday. On Wednesday, the Nepse index decreased by 60.02 points and stood at 2876.59 points. Shares worth more than Rs 6.64 billion have been traded. When the news of a telephone conversation between the finance minister and the governor became public, the market, which had grown in an attractive manner, slowed down again. During a phone conversation with the Finance Minister, the Governor said that the problems in the share market would be resolved immediately. But again, after some responsible officials of the NRB changed their bids, the self-confidence of the investors could not increase. However, it is believed that the central bank will soon issue policy directives to ease the share market as the finance minister has already given instructions. In particular, the market has been affected by the issue of Rs 120 million limit and renewal on share pledge loan. At the same time, short-term traders have booked profits, which has further affected the market.

The stock market has also been affected by a lack of liquidity in the financial system and rumors of banks raising interest rates.

 Therefore, patience is required from the general investors at this time. It is important to be confident that a declining market will grow. Experienced investors and analysts say that there should be no panic when the market declines in the face of dividends.

The general investor needs to be aware that the dividends that have already come in the face may be lost. When investing, one should pay attention to the major financial statements of the companies, dividend potential, future plans of the company, etc. Similarly, it is important to take care of the investment period and the holding time. 

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