Mar Thu 2023 05:22:30
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Kathmandu. The decline in the capital market continued on Thursday. The NEPSE index fell by 26.48 points to 1969.01 points. 1 billion 33 crore shares have been traded. As the index continues to face pressure, turnover is also drying up.
As the market continues to decline, the price has become cheaper. Some say that the turnover is decreasing because others are not selling the shares except those who need them at a cheap price.
There are many people who interpret that the group of people who are not ready to sell at a low price is increasing due to the slow turnover in the continuously declining market. In addition, NEPSE, which reached about 2278 points in the previous increase, has come back to the line of 1900 in a short period of time. Meanwhile, investors have lost billions of rupees.
The market is down now due to rumors of unstable politics. Between the time the market reached 2278 and now, there has not been much change in the economic landscape. In the meantime, only political ups and downs have taken place. But the influence of politics on the stock market is only short-term. Analysts say that the market will react based on the fundamental aspects now that the decline caused by politics is over.
The market has slowed down even though some of those who have booked profits before are gradually buying shares and others are still in a 'wait and see' situation. In the meantime, UML, the main component of power, has left the government. Along with this, it has not been decided who will be the finance minister.
The finance minister has a direct relationship with the stock market along with the economy as a whole. That is why some investors are aware of this aspect and are still following the strategy of 'wait and see' in the market.
Its direct impact has been seen in the stock market. However, as the price is very cheap, there is an analysis of some that investors will gradually leave the wait-and-see strategy and move to the buying process. Some have speculated that aggressive buying may not happen until the upcoming presidential election and the appointment of the finance minister. However, it is difficult to accurately measure market and investor psychology.
Even though the liquidity situation is getting easier, it is estimated that the stock market has had some impact because the bankers made the mistake of reducing the interest rate in February. However, these aspects can be expected to gradually improve. There are ups and downs in the stock market. Downsizing is the general rule of the market. Due to continuous decline, the share price in the market has become very cheap.
Therefore, the common investor should be able to proceed in a planned and strategic manner. Experts have suggested to invest in companies with good financial condition and dividend potential for a long period of time. It is equally important for investors to develop a positive mindset to ride a falling market.