First 100 days of PM Oli: Market Gains 6.16% or 70.43 points
Editor's Note: Analysis of first 100 days of PM Oli by Nischay Shrestha
Mr. K P Oli recently reached the 100 day milestone as Prime Minister of Nepal. Here is a brief summary of major events in NEPSE during his 100 days as PM.The Oli government inherited the political and economic problems brought about by the massive earthquake of April 25, 2015 and the unannounced Indian blockade from the previous government. The effects of these two phenomena governed the market in the 100 days of his premiership.
His first day as prime minister began with the market opening at 1162.06 and closing at 1143.88. The market lost 18.18 points or 1.61% on the first day of his premiership.
During the first half of his 100 days as prime minister the market was almost entirely influenced by the political development in the country. But later on, with Nepal Rastra Bank working to dampen the effects of the blockade on the financial sector and investors becoming acclimatized to the political situation, NEPSE changed direction and began to climb upwards. New leadership at SEBON and CDSC working to improve the secondary market also helped NEPSE with its upward march.
Major Highlights:
- Oct 11, 2015: Market loses 1.61% or 18.18 point on the first day of his premiership
- Oct 11 to Oct 18, 2015: NEPSE moves downwards without halt for four consecutive days and loses a total of 42.23 points or 3.63%. This is the first of two major bearish periods the market saw during the 100 days.
- Oct 27, 2015: Market registers the largest single day loss of 2.62% or 29.32 points on account of breakdown of talks between the Government and the agitating parties.
- Nov 9, 2015: Market climbs 1.92% or 20.86 points due to optimism among investors about a solution to the blockade.
- Nov 22, 2015: Market loses 2.12% or 23.19 points due to another breakdown of talks.
- Nov 24, 2015: The government issues its white paper but the market reacts negatively to it. The second of the two bearish periods begins on this day and ends only on Sept 29. The market loses a total of 53.03 points or 4.93% in the 4 days.
- Nov 29, 2015: Market hits its lowest point, losing 2.03% or 21.24 points and closing at 1022.77.
- Nov 30, 2015: Market changes direction and starts moving upwards.
- Dec 1 2015: Market gains 3.12% or 32.26 points to close at 1066.38.
- Dec 3, 2015: Halfway mark of Mr. Oli’s 100 days. Market gains 10.16 points.
- Dec 6, 2015: Market gains 2.79 % or 29.90 points as SEBON announces major improvements in the secondary market.
- Dec 27 2015: Market depth introduced to all investors via NEPSE’s official website. Market loses 1.56 points.
- Jan 6, 2016: Beginning of a long bullish run. Market marches upwards continuously for 9 consecutive days and gains a total of 67.54 points to close at 1214.31, the highest level in Mr. Oli’s 100 days as Nepal’s Prime Minister.
- Jan 14, 2016: Nepal Rastra Bank announces extension of relaxation in credit regulation. Market gains 1.84% or 21.84 points the very next trading day.
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