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Favorable Financial Indicators Vs Political Turmoil; Which shall prevail?

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Political Turmoil:- The occurrence of the election of local bodies which was finally going to held on 14th May 2017 after 20 long years is in BIG DOUBT following the mockery of democracy by our ill-elected political parties. I am no politician, but non occurrence of local election will have an adverse impact on people's psychology and the market. Favorable Financial Indicators :- Nepal SBI is providing 40% right shares, book Closure is on 26th Baisakh. SBI closed today at Rs. 1465. NMB Capital to conclude Standard Chartered Bank FPO allotment this week. That means the over subscribed amount in the FPO i.e. Rs.34.9 Arba will float back into the market. Further, SCB will provide 100% bonus shares. Today SCB closed at Rs.2280 . Jyoti Bikas Bank's Profit rose by 134% in the 3rd Quarter. Machapuchre Bank's Profit rose by 61%. Nepal Life Insurance earns profit of Rs.40.96 Cr in 3rd Quarter and has reserve amounting Rs.4.73 Arba. On one side we have reaso...
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It might just be the beginning of the bearish trend that Nepse is about to see.

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With clouds of political uncertainty hovering around the horizons, Nepal stock index might just be in a bearish mood. In the very first trading day of 2074, the market declined by 45.52 points i.e.2.68% to 1651.61 points. It might just be the beginning of the bearish trend that Nepse is about to see. The Nepse just witnessed a dramatic bullish trend in the past 2 months. The shares were in boom without a material value addition in the underlying. Now the date of election is approaching and Nepal banda is declared by some political parties. This circumstance will definitely have an adverse effect on the investors. I would not be surprised to see some lower circuit breakers triggered in the days to come. So, it would not be wise to purchase any new stock without actually analyzing the books or knowing the immediate capital plan of the stock. -CA Ubhek Kumar Shrestha 16th April 2017 Previous blogs :- NEPSE Index G...
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NEPSE Index guided more by intuitions rather than ability of the underlying to provide return

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Well they said 1218(Index Nepse) seemed to be the end point of correction. Yes indeed. Liquidity crunch in the market had hit hard on the Nepal Stock Exchange. Under-mobilization of government budget in the first half of the Financial year and soaking up of Indian Currency from market being the major reasons for the liquidity crisis. Similarly, FPO issued by Banks and insurance companies had soaked cash from the market. The government had to pour the budget in the market sooner or later. Similarly, 3 months after the decision taken by Narendra Modi to withdraw 1000 & 500 Rs note from the market, the void left by banned IC started to fill up. Billions held by NLIC FPO was floated back into the market after allotting the FPO. Now, the reason behind the bearish trend of the market seized to exist and yes the market had to rise. After the correction point, it was as if every one was waiting for the right time to invest in the stocks. People started flooding money into ...
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