1.Banking index may go up. Particularly, the rumor mill may push NBL, ADBL up. NCCB also could be up due to requirement to meet paid up capital. The same factor could take KBL and SBL little up.
2. Good development banks and finance companies also may go up due to similar reasons (rumor, paid up requirements as in 1 above.)
3. Hydropower may go up marginally as CHCL may come down slightly (due to Mr. Ghising's transfer factor), other hydropower companies may go up.
4. Provisions in the NRB monetary policy could be over hyped by rumor mill owners. The push and pull factors there are as mentioned below:
Push Factors:
1. Hydropower
will have greater priority.
2. Basal
III will be implemented gradually.
3. MFI
networks would be expanded and strengthened.
Pull Factor:
1. Emphasis
on managing liquidity. May increase interest rate.
2. Bringing
provisions on loan and interest rate for margin lending. The tone and basis there
is to making it tight and restrictive.
3. Many
FINGOs may become MFIs creting pressure on existing MFIs.
Some Insignificat Factors that may provide fodder for rumor
1. Asking
BFIs to meet already set paid up capital requirement. Only a few BFIs will be
affected.
2. Expansion
and strengthening of MFIs by overlooking the FINGO factor.
Business advisory: Be informed, do not hurry, no train is leaving the junction, stay calm, see the market during the first hour, see which side the camel sits, take appropriate decision and execute.
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