Kathmandu. Nepal's capital market has seen dramatic and historic fluctuations this week. During the 4-day trading period from Falgun 25 to 28, 'political sentiment' seems to have had a full impact on the market. Amidst the results of the House of Representatives election and the discussion of the future Prime Minister, the NEPSE index has increased by a massive 108 points overall this week. Investors have termed this increase as 'baleen bull'. Looking at the data for the week, it is seen that the market has increased by an average of 27 points daily. Even in the short trading period of 4 days, a total of 49.79 billion 19.66 million rupees worth of shares were traded, which is clear that investors have entered the market.

A total of 131.59 million 90 thousand 976 shares were bought and sold this week. A total of 455 thousand 227 transactions were made during the week, while the average daily transaction amount was above 9 billion 958 million 39 thousand rupees. The number of companies involved in the transaction was also above 250 on average.

Positive circuit in NEPSE:  Balen as Prime Minister of Nepal

In particular, the talk of the RSP advancing Balen Shah as the Prime Minister led to the 'Balen Bull' in the market. On Monday, the NEPSE rose by 6 percent (162.93 points) to 2,875.43 points. Due to the rapid growth, the market experienced three positive circuits and trading was closed early.

The market was not always consistent. After rumors of a tussle within the Nepali Samaj Party over the prime ministerial candidate emerged, the market witnessed a 'panic sell-off' on Tuesday and Wednesday. The uncertainty over Balen's name, with acting president of the Nepali Samaj Party DP Aryal saying, "The prime minister is a matter for the party to decide," and MP Hari Dhakal also hesitating to mention Balen's name, raised doubts among investors.

Balen's confidant Rajunath Pandey also expressed his opinion in various interviews that Balen will be the next prime minister, as agreed between Nepali Samaj Party President Ravi Lamichhane and Balen. This statement also created more fear among investors.

As a result, the NEPSE fell by 32.08 points on Tuesday and fell by 46.78 points on Wednesday. Investors rushed to sell shares fearing that Balen would not be the prime minister, which led to a market collapse for two days.

However, trading was fully supportive on both days. On Tuesday, the turnover was Rs 21.5 billion, while on Wednesday, it was Rs 13.18 billion.

On the last day of the week, Thursday, the market regained its momentum. Overall, the weekly increase of 108 points and a turnover of nearly Rs 50 billion has infused new enthusiasm into the Nepali stock market.