Slightly improvement in NEPSE : Investors are still in a 'wait and see' state, what will happen next?

Feb Sun 2023 05:15:07

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Slightly improvement in NEPSE : Investors are still in a 'wait and see' state, what will happen next?

Kathmandu: The NEPSE index increased by a few points on Sunday. On this day, the index increased by 1.54 points to 2096.08 points. There is a positive circuit in one company when there is a share turnover of 1 billion 93 crores. Overall, the stock market is still not able to pick up speed. The market, which has been in correction for some time, has reached a wait-and-see state due to the latest political developments. However, the influence of politics on the stock market is only short-term.

Earlier, NEPSE, which reached 2278 points in the intra-day, has now slowed down. Those who have booked profit are looking for an opportunity to enter the market. Due to their mindset that they can buy as much as possible, the market has not picked up speed. When it increases, both new and old investors are excited to buy shares, that's why the buying and selling amount accelerates. Similarly, even when the market is down, those who pick up shares at a low price become active, this also helps to increase the purchase and sale amount.

  But when the NEPSE index is stagnant, the trading volume also slows down, because confusion arises at such times. Common investors find it difficult to predict where the market will go. This is why common investors are sitting in a wait-and-see situation. The market is in the correction phase. Whether in an uptrend or a downtrend, the market does not always move at the same speed. The situation that has reached the bull run will also move downwards and move forward through correction.

Therefore, common investors should pay special attention to market trends and cyclical rules. Likewise, experts say that bank interest rates, liquidity conditions and future predictions should also be able to be predicted. Similarly, policy, technology and interest rate are the main aspects of stock market reform. In order to improve the market, the interest rate should be reduced and the policies related to the market should be positive. Similarly, it is necessary to develop new technologies.

  The psychology of investors plays a very big role in the stock market. Therefore, it is necessary for the government and regulators to adopt policies and practices that will raise the morale of investors. If the investors are positive, the market will go up, if common investors feel that they can get profit by investing in the stock market, it will not be difficult for NEPSE to touch new heights.

Therefore, it seems necessary to get the attention of the government and policy makers. More than 52 million shares of 258 companies were traded on this day. In terms of transaction amount, Nepal Life Insurance's shares have been traded the most with more than 644 million rupees. Similarly, NIC Asia and Nabil Bank are ranked second and third respectively.