The stock market of Nepal increased : Is the correction over ?

Apr Mon 2024 02:12:38

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The stock market of Nepal  increased : Is the correction over ?

Kathmandu: The stock market has become positive in the final hours of Sunday. On this day, the NEPSE index increased by 12.29 points to 1984.43 points. Shares worth more than 2 billion 25 million rupees have been traded. Indicators of 11 out of 13 groups have been positive. NEPSE, which has been continuously decreasing since the market opened, returned to a positive rhythm after 2:30 pm. In the initial stage, the market showed a negative trend as the banks published their financial statements showing a decrease in profits.

On this day, more than 63 lakh 93 thousand shares of 310 companies were traded. Gorkhaz Finance is in the forefront in the transaction amount with 10 crore 21 lakh rupees. Likewise, Best Cement and People's Power are ranked second and third respectively.

NEPSE seems to have decreased by 63.84 points. For this reason, the price has become even cheaper. It can be assumed that both short-term and long-term investors will be excited to buy at reduced prices. The analysis of some people is that there may be some improvement in the market due to the continuous decrease in prices.

Even before the report, the market has already corrected a lot and now the market price has also reached a very low point. On the other hand, since the price is very cheap, it does not seem that anyone else wants to sell the shares except for the urgent ones. Due to the cheap price, it is estimated that the buyer side dominated the market in the last hour.

  However, the speed and trend of the market cannot be predicted. It is only a guess based on various facts. Earlier, after the NEPSE index came to the line of 1900, it went down even faster. The indicator stopped going down after reaching around 1954 points on Sunday. As the index continued to decrease, the amount of purchase and sale also decreased. It is estimated that the purchase and sale amount has also been affected because there are fewer people selling at a very cheap price.

However, the experts have been saying that there is no other way except policy reforms for the attractive improvement of the continuously declining market. Investors say that even the continuously reduced interest rates and more liquidity could not move the market up, so the policy barriers that had been tightened earlier should be removed.

  It seems that only removing the political obstacles will increase the morale of the investors and it will help to move the market upwards. A policy has been implemented to restrict large investors in the capital market. Currently, individuals can take a maximum of 15 crores and organizations can take a share mortgage loan up to 20 crores only. Due to these reasons, big investors have not been able to invest in the stock market openly.

Currently, there is a 125 percent risk burden on share mortgage loans above 50 lakh rupees. Limits have been set on share mortgage loans. These things have been affecting the stock market for a long time. Overall, the stock market is a risky sector.  Therefore, common investors are suggested by experts to invest by taking into account important fundamental aspects including dividend capacity, company's profit. Similarly, investing by planning to hold for as long as possible helps to stay safe from daily fluctuations.