Stocks fail to look smart
Nepal Stock Exchange could not reverse its over a month long declining trend in the past week when it recorded 0.22 % fall while closing at
376.67 points. Stock investors' dull deal resulted in 23.11 % decline in the total turnover during the five day-transactions.
The information disseminated by Central Bureau of Statistics about the country's dismal economic growth rate standing at 3.47 % as against the Finance Ministry's target of 4.5 % made the investors highly worried. Adding to their worries was the news about the troubles of Gorkha
Development Bank. The confusion in labour front about key trade unions' agreement with management over salary increment and the opposition to the same by others may have de-motivated the stock traders.
Since NEPSE yard is mostly covered by banks and financial institutions, the factors affecting the latter do not allow the secondary market to move forward with enthusiasm. The tools to promote stock market are there but none is enthusiastic to implement them. Experts and stakeholders talk the tools - mutual funds, smarting stock management, making NEPSE more open for institutional investment - from time to time but never move ahead for pressing implementation.
It seems there is a gap in guiding investment in the country. The level of coordinated approach essential for boosting investment and stock trade appears missing although the institutions and stakeholders appear quite busy in their own field. The sense of team spirit is what institutions related to investment in Nepal lack, say some experts. Perhaps, the Nepal Rashtra Bank would come forward to provide that coordinated guidance to investment.
Political instability has, of course, been serving as the constant disturbing factor for not allowing investors focus on economy and share
market. Even after the formation of a government under the leadership of parliamentary majority elected Prime Minister, Singha Durbar has not been able to inject a sense of confidence into the psyche of investment community. If the new budget or the much talked supplementary budget did not take a decisive stand on it, the investment scenario of future will also look bleak.
Stock deal in the week
The weekly phenomenon shows some progress on the second day when the secondary market climbed to 379.46 points from Sunday's 377.60. Then the
NEPSE continued steady decline for the rest of the week. Except for the Hydropower and Others sub-sector, all sub-indices witnessed loss during the period when the Development Banking Sector recorded the highest loss.
NEPSE witnessed business of 347,562 shares in 8,424 deals in the week resulting in the turnover of Rs. 76.42 million as against the previous
figure of Rs. 99.39 million.