NEPSE addresses falling market; urges investors not to panic

Nepal Stock Exchange Limited (NEPSE) has shown concern over the falling market. The scrip of Insurance and microfinance companies have fallen sharply which has also become a major factor for the bearish market. Likewise, the downfall in the price of banking, development bank and finance sectors have also affected the market indicators. Generally, price of any scrip decreases if transaction of share takes place before book closure date for bonus and right share distribution or before the conduction of Annual General Meeting (AGM). However the liquidity rate is satisfactory compared to the overall economic scenario, leaving no reasons for investors to panic during the market breakdown. In case of our country, only financial sectors have domination over the stock market. Thus, NEPSE urges investors not to go after rumors. There are many companies which have sound financial condition despite of the decrement in the price of their scrip. Investors may deprive themselves of the Market Benefit if only they go after the rumor. In addition NEPSE urges investors to analyze the financial institutions overall scenario, its possible risks and beneficiaries, company’s future policies and to go through only authentic information from NEPSE’s website and other mediums before investing in shares. Besides, NEPSE is working on following areas for bringing more transparency and credibility in the stock market.

• Clearing Banks
• Increasing service of brokers outside valley
• Improving policies and regulations
• Entry of Broker Dealer
• Establishment of Fully Automated Online Trading System

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