Kathmandu. Nepal Rastra Bank (NRB) has appointed the share market minister on the recommendation of the Interim Government and the Capital Market Reform Commission. The demands raised by the investors have also been addressed. However, the stock market has not improved much.
On the other hand, the NEPSE index decreased by 78.83 points to close at 2,503.35 points. The reason for the decline in the market is not due to policy arrangements, but to different reasons.
According to stock market analyst Prem Oli, there are many reasons for the fall in the market. “At present, the policy arrangement is favourable for the stock market,” he said, “But although the policy arrangement is positive, the market has decreased due to other reasons.” ’
According to Wali, one reason could be political confusion. “There has been a change in the country after the Jenji movement, but the morale of the investors has not been boosted due to lack of proper address from the government and the President,” he said, “The date for the election has been fixed but the political parties have not decided whether to participate in the election on the stipulated date.” As a result, investors are confused. ’
Another thing is that even though the money has accumulated in the banking system, the market has been affected due to the lack of investment of additional money due to the expiry of the limit of share loans set by the Rastra Bank for the banks. “The banks have been set a limit to invest in the share market, due to which the banks have not been able to issue collateral loans despite having money,” he said, “The market has not been able to gain momentum due to lack of demand for loans from the private sector and failure to issue loans in the share market.” Therefore, the central bank needs to increase the limit of share mortgage loans issued by banks. ’
Similarly, Oli said that the market remained stable during the festival time in the past as well. “But this year, there has not been a big drop in the market,” he said, “because there is a quarterly pressure on the eve of Tihar.” It’s time to pay off the loans and interest of the banks. This is the reason why investors are not paying the bank’s loans and interest by selling shares even though they are at a loss. ’
Oli argues that the stock market will gain momentum if the political atmosphere improves after Tihar.
