Hom Nath Gaire
As the NEPSE, the Benchmark Index of Nepalese secondary market is turning up from almost of its 5 Year's lowest point, experts and investors of the stock market are striking to inject more funds in the market. Technically the market has reached the lowest level of 'oversold' zone and the fundamental indicators of the majority listed companies are as good as they were during the 3 years back's Bull Run. At the same time, regulators of the capital market and the banking system of the country are keen to create the favorable environment that would be helpful to boost up the market. "The market price of the listed shares is discounted as much as 2-3 folds as compared to their highest level without loosing their net worth per share," asked Dr. Surbir Poudyal the chairman of the SEBON, the regulator of the country's capital market, "thus the investors need not to be bothered, and rather they should be provoked to invest more funds in the market."
The NEPSE has just encountered the long-term support point around 358 and turning towards its 6 month's pivot 381.44. According to the technical analysis, once the stock market index reached its pivot and sustain above the point then that will be a sign for steady growth in the market. If we believe on the fundamental hypothesis of technical analysis 'History Repeats Itself' this is the right time to take-up the the NEPSE index. Because, the index was started to move up from the same level before 5 years and this history may repeat now also. Dr. Prakash Naupane, financial analyst and Associate Professor in Nepal Commerce Campus Kathmandu also agreed that this is the right time to invest in the Nepalese stock market. "But, the investor's confidence is more important in the stock market," Neupane reveals, "the recent policy and infrastructure development are helpful and constructive to encourage general investors." According to him, the concerned government authorities and the investors' societies should come together to create conducive environment and to attract more capital in the market. No dought some positive changes have taken place in terms of policy and infrastructure development of the capital market that are the good news for the Bull Run of the NEPSE.
The secondary market is going to be automated as the Central Depository System (CDS) is almost ready for operation. A separate company named 'CDS and Clearing Limited' is established by the Nepal Stock Exchange Limited (NEPSE) in collaboration with some commercial banks and other financial institutions to operate the central depositary system. The software of the CDS system handed over by Mr. Rakesh Sood, the Indian Ambassador for Nepal on Thursday in an inauguration ceremony of the 'CDS and Clearing Limited' in Kathmandu. This is the landmark development to modernize the Nepalese capital market and would be instrumental to overcome the price manipulation by some parties or the big players. Likewise, the participation of the small and medium investors will tends to increase leaving no playing ground to such parties and people. Mr Rakesh Sood also believes that the Central Depository System may play pivotal role to develop the Nepalese Secondary market. "Establishment of the 'CDS and Clearing Limited' is mile stone for the stock market of Nepal," Sood Expresed his view during the inauguration ceremony, "the market will get momentum soon and the Nepalese stock investors will be benefited." The CDS software was prepared by the grant of the Indian Government.
The Mutual Fund regulation was prepared by the SEBON and approved by the Parliament last year. Recently, Nepal Rastra Bank (NRB), the central bank of the country had allowed the commercial banks to operate the Mutual Fund under the prescribed regulation. This also increased the possible entry of the institutional investors in the market, which will be helpful to absorb the growing supply of the shares and provide supports for the market prices. "CDS, the basic infrastructure for the modern capital market is ready to operate and the door for institutional investors is also opened," shared Dr. Yubraj Khatiwada, the Governor of the central bank, Thursday, "it will lead the NEPSE towards positive direction." Likewise, the NRB also relaxed the margin type lending that the banks and financial institutions are offering to the stock investors in the collateral of listed companies share certificates. And, investors are allowed to renew their old loan by paying the due interest up to the end of this Fiscal Year. This will also stress-free the existing investors from their debt burden and encourage them to hold the shares. At the same time, some new investors may enter in the market to graph the opportunity of 5 year's lowest cycle of the NEPSE.
As the NEPSE, the Benchmark Index of Nepalese secondary market is turning up from almost of its 5 Year's lowest point, experts and investors of the stock market are striking to inject more funds in the market. Technically the market has reached the lowest level of 'oversold' zone and the fundamental indicators of the majority listed companies are as good as they were during the 3 years back's Bull Run. At the same time, regulators of the capital market and the banking system of the country are keen to create the favorable environment that would be helpful to boost up the market. "The market price of the listed shares is discounted as much as 2-3 folds as compared to their highest level without loosing their net worth per share," asked Dr. Surbir Poudyal the chairman of the SEBON, the regulator of the country's capital market, "thus the investors need not to be bothered, and rather they should be provoked to invest more funds in the market."
The NEPSE has just encountered the long-term support point around 358 and turning towards its 6 month's pivot 381.44. According to the technical analysis, once the stock market index reached its pivot and sustain above the point then that will be a sign for steady growth in the market. If we believe on the fundamental hypothesis of technical analysis 'History Repeats Itself' this is the right time to take-up the the NEPSE index. Because, the index was started to move up from the same level before 5 years and this history may repeat now also. Dr. Prakash Naupane, financial analyst and Associate Professor in Nepal Commerce Campus Kathmandu also agreed that this is the right time to invest in the Nepalese stock market. "But, the investor's confidence is more important in the stock market," Neupane reveals, "the recent policy and infrastructure development are helpful and constructive to encourage general investors." According to him, the concerned government authorities and the investors' societies should come together to create conducive environment and to attract more capital in the market. No dought some positive changes have taken place in terms of policy and infrastructure development of the capital market that are the good news for the Bull Run of the NEPSE.
The secondary market is going to be automated as the Central Depository System (CDS) is almost ready for operation. A separate company named 'CDS and Clearing Limited' is established by the Nepal Stock Exchange Limited (NEPSE) in collaboration with some commercial banks and other financial institutions to operate the central depositary system. The software of the CDS system handed over by Mr. Rakesh Sood, the Indian Ambassador for Nepal on Thursday in an inauguration ceremony of the 'CDS and Clearing Limited' in Kathmandu. This is the landmark development to modernize the Nepalese capital market and would be instrumental to overcome the price manipulation by some parties or the big players. Likewise, the participation of the small and medium investors will tends to increase leaving no playing ground to such parties and people. Mr Rakesh Sood also believes that the Central Depository System may play pivotal role to develop the Nepalese Secondary market. "Establishment of the 'CDS and Clearing Limited' is mile stone for the stock market of Nepal," Sood Expresed his view during the inauguration ceremony, "the market will get momentum soon and the Nepalese stock investors will be benefited." The CDS software was prepared by the grant of the Indian Government.
The Mutual Fund regulation was prepared by the SEBON and approved by the Parliament last year. Recently, Nepal Rastra Bank (NRB), the central bank of the country had allowed the commercial banks to operate the Mutual Fund under the prescribed regulation. This also increased the possible entry of the institutional investors in the market, which will be helpful to absorb the growing supply of the shares and provide supports for the market prices. "CDS, the basic infrastructure for the modern capital market is ready to operate and the door for institutional investors is also opened," shared Dr. Yubraj Khatiwada, the Governor of the central bank, Thursday, "it will lead the NEPSE towards positive direction." Likewise, the NRB also relaxed the margin type lending that the banks and financial institutions are offering to the stock investors in the collateral of listed companies share certificates. And, investors are allowed to renew their old loan by paying the due interest up to the end of this Fiscal Year. This will also stress-free the existing investors from their debt burden and encourage them to hold the shares. At the same time, some new investors may enter in the market to graph the opportunity of 5 year's lowest cycle of the NEPSE.
Comments
Post a Comment