What impact will advisory from SEBON have in the current Share Market ?

Sun, Mar 13, 2016 3:15 AM on Latest, Experts Speak, Featured, Stock Market,

Last week, SEBON urged investors, through press release, to invest in secondary market with precaution. In its press release to investors SEBON notes NEPSE Index has made a progressive success with increasing from 961.23 points to 1300 points in this current fiscal year. All the investors are requested to overview the economic scenario of the country and the company itself before investing. Also SEBON urged investors to invest reviewing the condition of share market with high alert.

This week we have asked few investors the impact of this press release from SEBON in the secondary market of Nepal.

Swosthani Neupaneswasthani neup

It is obvious that the current share market of Nepal is in bullish trend. In the midst of this SEBON has advised the investors to take precautions. In my opinion interest rate, policy in margin lending, Liquidity is the things that will affect the capital market. Investors will take a note of such advice but will not have significant negative effect on NEPSE INDEX at this point of time.

Krozan Chitrakarkrojan foto

The advisory press release from SEBON is unlikely to have negative effect as a whole as we are in the middle of bullish trend. Insurance and Microfinance sectors are doing well which is expected to do well for some period of time. Bonus from Insurance and paid up capital hike for microfinance will drive up the market ignoring such advice(s).

Nivaj ShakyaNivaj

The market is still in bullish trend. Such press release from SEBON is unlikely to reverse the current trend in the market. With all these right issue, FPOs and dividends from insurance sectors in pipeline, market will be pushed upward. However, continuous rise of market is not possible, so we may see some sideways movement or even correction for a while. Eventually, the market will go higher than at present condition.