My Take on Nepal Stock Exchange

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...

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 ...