Why Continuous landslides in the stock market ?

Dec Fri 2021 11:19:44

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Why Continuous landslides in the stock market ?

 If liquidity crunch does not subside, the market will continue to decline

Kathmandu. It is estimated that the share market will not rise until the situation of extreme shortage of investable funds in the bank ends. As the bank does not have the capacity to invest in loans, the possibility of share investors buying shares is low and the impact has been continuous in the market. The central bank's commitment to address the liquidity crunch has so far had no positive effect. Due to which the share market is continuously declining.

Share investors have not been able to get loans even after paying more interest. The overdraft given by the bank has been removed arbitrarily. Due to which investors have not been able to make new investments in the stock market. According to analysts, if the government does not manage to invest, the market will continue to decline.

The reason why the business is at such a low point is because there is no money to invest with the bank. The extreme shortage of money to invest in the bank is having a direct impact on the share market.

At present, the central bank's monetary policy review has not reduced the market to Rs 4 and 120 crore. Analysts say that this problem has arisen due to the inability of the central bank to send sufficient amount of money to the market.

4 and 120 million share investors have already digested. However, the market has been badly affected due to lack of funds from banks. At present, only those who have a lot of money are buying shares. Even large investors have not been able to buy shares as the bank has closed OD. That is the effect of the share market.

From Finance Minister Janardan Sharma to Governor Maha Prasad Adhikari, they do not seem serious about easing liquidity. Due to which the economy itself may come to a standstill. The country has been short of investment for the past two months. However, the stock market has been affected as Finance Minister Sharma and officials have not taken any initiative in this regard.

On Wednesday, there was a 40-day low turnover. Shares worth Rs 2.74 billion were bought and sold on Wednesday. Shares worth Rs 3.41 billion were bought and sold on Thursday. On the last day of the year, the Nepal Stock Exchange (NEPSE) has decreased by 49.04 points and reached 2581.61 points.