How will market perform after festival? Experts opinion inside
- ShareSansar, November 7, 2016 on Experts Speak , Featured , Latest , Stock Market
Currently, the benchmark index at Nepal Stock Exchange Limited (NEPSE) has been hovering around 1750- 1800 points. The market was mostly downward between the main festivals Dashain and Tihar. On the last trading day of the week after Tihar Festival, Nepse Index increased by 2.50 points or 0.14% to close at 1762.21 points.
Here is the opinion of the experts on how market will perform after these major festivals :
Chief Executive Officer (CEO), NMB Capital Limited
Market will show some corrections and afterward the market will be stable at a point. It is normal for market to go downward with increment in interest rate and lesser liquidity in market. Earlier stock market used to get affected by small news such as bonus share declaration but now the situation has changed. Even bonus declaration by companies shows no any significant impact in the share price of the company these days. Mutual funds have relatively long period of time. So for mutual funds there is no any rush to invest within short span.
Prabin Raman Parajuli
Chief Executive Officer (CEO), Nabil Investment Banking Limited
Market will remain constant in upcoming days. There might be slight correction but there won’t be any drastic change either. Since numbers of mutual funds are in the row, there may arise demand in case of slight correction. Existing mutual funds will be affected by the correction however it will be an opportunity for new mutual funds.
Shree Hari Securities Limited (Broker No. 56)
In coming weeks, market will not rise above 1800 points neither it go down drastically. Market will remain in the sideways movement. In my opinion, Non-life & Life Insurance companies may be the factors to drive market upward as insurance companies are yet to publish their first quarter reports. Banking sector will no more be hype to investors.
Nanda Kishore Mundara
Shree Krishna Securities Limited (Broker Number 28)
I would like to say, Nepse’s performance will remain stagnant in the coming days. It’s Wait and Watch situation. There won’t be any fluctuation in the coming days. If financially sound companies will issue handsome dividends to its shareholders then Nepse will be positive in certain points. Another factor for market to be positive is the implementation of favorable rules and regulations for the stock market. In my point of view, Nepse will create a new high after Chaitra end.
Tsewang Lhamnyer Gurung
In my point of view, the psychology of investor seems optimistic as of increasing number of institutional investors, mutual funds and investor awareness in stock market.
Declaration of dividends from many companies and slight increase in interest rates has not adversely affected the stock market so it seems investors are waiting for the right time to invest.
Positive things such as investment of Non Nepali Residents (NRN’s), online trading system, issuance of broker license to commercial banks, increased number of mutual funds, accessibility of brokerage facility outside valley etc in coming days can provide new dimension to Nepalese stock market.