Favorable Financial Indicators Vs Political Turmoil; Which shall prevail?



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 reasons to believe that the market will prosper based on the financial indicators whereas on the other side the political situation of the country has a different story to tell. In this face off against "Favorable Financial Indicators Vs Political Turmoil; Which shall prevail?" - Only time will tell.

- CA Ubhek Kumar Shrestha


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