It might just be the beginning of the bearish trend that Nepse is about to see.

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 Guided more by intuitions rather than ability of the underlying to provide return
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