. The share market is in a wait-and-see mode as the possibility of senior leader Balendra Shah (Balen) becoming the Prime Minister and the possibility of Vice-President Dr Swarnim Wagle becoming the Finance Minister are yet to be decided.
Investor Rajan Lamsal says, “Political instability and uncertainty about ministers’ decisions have not given a clear direction to the market.TAG_OPEN_div_46 Investors are now adopting a risk-averse strategy and a wait-and-see strategy. ’
“If the leadership is finalised, the market will take a positive turn,” he said.TAG_OPEN_div_44 However, due to the negative information coming in the market, the stock market is currently fluctuating. ’
The stock market is in a wait-and-see situation after the election of a representative member. The stock market, which closed due to positive circuit for three times on March 8, the first trading day after the House of Representatives election, could not rise in the last few days. On Monday, the first trading day after the election, it rose 4 percent within a minute of trading and closed for 20 minutes.
Similarly, the stock market closed for 40 minutes, rising 5% in trading for the second time on the same day. The stock market, which was closed for 40 minutes for the second time, rose 6 percent as soon as it reopened. However, after that, there was not much enthusiasm in the stock market which opened on Tuesday (March 26).
‘After a long time, the stock market hit a positive circuit and the share prices of most companies rose. Lamsal says, “After a long time, the share prices of most of the companies went up due to the positive circuit in the market.” This led to many investors turning to the ‘profit book’, that is, to ensure their profits. According to him, there has been some ‘correction’ in the market as investors are trying to adjust the behavior by ensuring profits.
The Nepal Stock Exchange (NEPSE) index fell by 32.08 points on Tuesday, the second trading day after the election.TAG_OPEN_div_36 However, on this day, the transaction volume was the highest in 8 months. On Tuesday, the stock market was trading at Rs 21.22 billion. Lamsal said that the stock market was encouraging on the day on the basis of transaction amount.
Since then, both the NEPSE index and the share trading volume have fallen.TAG_OPEN_div_34 On Wednesday, the NEPSE index decreased by 46.78 points and the trading volume of the day was Rs 12.95 billion. On the previous trading day, both the NEPSE index and the transaction amount decreased.
Similarly, on Thursday, the NEPSE index increased slightly.TAG_OPEN_div_32 On Thursday, the NEPSE index increased by 23.87 points. The turnover on the day has also increased slightly compared to Wednesday. On the next trading day, there was a slight improvement in the stock market on Sunday.
Transactions on the day also amounted to Rs 13.89 billion. Similarly, the Nepal Stock Exchange (NEPSE) index increased slightly. On Tuesday, the NEPSE index decreased by 26.07 points. The transaction amount on this day is also lower than the trading days after the election. According to the Nepal Stock Exchange (NEPSE), only Rs 11.63 billion was traded today.
According to investor Chhote Lal Rauniyar, the lack of clarity in the market is the lack of clarity in the market as the political leadership and the appointment of the finance minister have not been finalized.TAG_OPEN_div_28 “Uncertainty in the leadership and cabinet has weakened investor morale. Investors are not ready to take the risk. Rauniyar says.
Similarly, Rauniyar says that there is confusion about what decision to take regarding the stock market as the new cabinet is new.TAG_OPEN_div_26 He believes that if the new cabinet creates an environment for the regulatory body related to the stock market to work well, it will have a positive impact on the market.
Rauniyar says that according to the current economic and financial situation, the stock market seems to be on a positive path.TAG_OPEN_div_24 According to him, the stock market is the main area of investment due to cheap interest rates, sufficient liquidity in the market, and less investment in other sectors.
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