Massive fall in market; See what experts have to say

Nepal Stock Exchange Limited (NEPSE) Index has fallen by massive 65.44 points (4.76%) today. The market opened at 1375.14 today and started falling soon after that. Heavy selling pressure was seen in all the sectors, especially in insurance sector. The overall market capitalization  decreased by Rs 74 arba today itself whereas the turnover stood at Rs 53.66 crore. Today, most of the companies falling under insurance sector ended up hitting a negative circuit. The main reason for this was omission of specific paid-up capital in the Insurance Act.  6 out of 10 companies losing the most were insurance. 'Non-inclusion of specified capital doesn’t mean denial of capital expansion', said an expert. Today, 90,456 units of NIBL Samridhi Fund-1 (NIBSF1) and 82,391 units of Prabhu Bank (PRVU) were traded the most today. The total turnover of the day stood above Rs 53.66 crores. 11.26 lakh unit shares were traded through 5,649 transactions. Arun Finance (ARUN) and Oriental Hotel (OHL) were the highest gainers. Experts opinion regarding today’s market:  “If the present government doesn’t take an action for online trading and broker license, don’t expect any vote from investors.” Dipendra Agrawal points out the non-inclusion of specified paid up capital in the Insurance Act as the major reason behind today’s downfall. Besides, rising interest rates in loan and margin calls are other major reasons behind the current scenario. The capital expansion in Bank and Financial Institutions (BFIs) has rose the supply of shares to 400%, but absence of demand in that proportion has been the reason behind the falling market. The demand can only be increased if online trading and broker license for BFIs will be introduced.   Dipendra Agrawal Mega Bank Nepal Limited, BoD Member,  Member of Investors Forum   Fluctuation is a natural behavior of the market. It is sinking today, but in days to come it will again rise for sure.   Shrijesh Ghimire                                                                         CEO NMB Capital Limited   Rumors regarding capital plan has made insurance market free fall. Regulatory invention is needed or else there will be big accident in the market. Sandeep Bikram Rana Fundamental Analyst and MD at IMS Investment Pvt. Ltd.