Hopeful signals for stock market
Capital market investors felt relieved this past week when Nepal Stock
Exchange did not show any nervous symptom over the much talked instability
that most feared the UNMIN's exit would trigger because of vacuum in
supervision of Maoist combatants and arms in cantonments. Its index did
not crash; it recorded a gain of 3.78 points while closing at 406.90
points while building on the positive note of previous two weeks.
When viewed against the history of NEPSE's sensitivity to political
uncertainty, the positive signal received in share market in the past week
could be termed as important. Investors moved forward as if they knew in
advance about the Saturday's smooth timely transfer of the combatants and
their arms from Maoists to the Special Committee chaired by the Head of
The gain should also be studied in the backdrop of the anxiety expressed
publicly by donors in the past week over government's failure to finalize
its strategy to support their Nepal Peace and Development Strategy 2010
-15 announced recently. The Three Year Plan (2010-13) that was to be
implemented from the beginning of current fiscal year seven months ago is
not ready yet.
Speculations that usually visit the time of second quarter results have
definitely contributed to the gain of NEPSE. The high value that Nepal
Telecom shares lured in the week had its own impact on the uptrend. The
8.20 percent decline in turnover during the period, according to analysts,
is just the phenomenon that the secondary market has been showing from
time to time.
On the first day, Jan 16 Sunday, NEPSE opened with positive gain of 0.37
point to close at 403.12 points. This was steadily followed throughout the
week: moving towards 403. 71 points on Monday, 403.46 on Tuesday, 404.33
on Wednesday and 406.90 points on Thursday. The uptrend did not get
disturbed even by NEPSE workers' protest over drawing the management
attention to their grievances.
Hopeful signals emerged from NEPSE premises as the news on the five -year
plan specially focused on developing securities market in Nepal got aired
and published. A nine-member steering committee and advisory groups under
the chairmanship of the Securities Board of Nepal (SEBON) is promptly in
place to create policies to formulate such scheme that would, hopefully,
ensure long term and short term interest of capital market.
The securities market regulator plans to develop the master plan for
developing domestic securities market with the technical assistance of
World Bank. International stock market expert Richard Pratt from World
Bank has prepared a market assessment report to this effect. The steering
committee will review it and suggest to Pratt.
Investors believe the plan would produce a road map for the capital market
in the country besides enriching the experience and structure that Nepal
has already gained and built up over the decade and a half. nepalnews.com Jan 23