1.
I spent some time in reading and refreshing
myself and tried to reflect on new information
in improving my own knowledge to understand the market dynamics. In these processes
of introspection and retrospection, I realized that it is beyond normal
comprehension to rationalize highs and lows of some companies and some sectors by
using fundamental and technical analysis. Hence, I realized that we should utilize
part of our sensory nerves to smell the activities inside the board rooms of mega
buildings in Kathmandu valley. I mean
literally that we should observe activities of public sector institutional
investors keenly and objectively.
Nepali capital market has three important
investing/trading categories: small as well as medium traders/investors, big
traders/investors and institutional investors. Among these institutional
investors the first group is that of private sector companies and the second
one is that of public sector companies. In public sector companies a manager
takes investment decision without taking any personal risks (forget about
action against him/her even in case of heavy loss due to faulty investment
decisions). This public sector institutional investor sub- category is not well
understood in Nepal. Hence, the banks in case of insurance, micro-finance and
hydro sector shares and insurance companies in case of banking sector shares
are playing vital roles. Therefore, if we like to make informed decision and
opt for calculated risk taking, we should learn about them. Education on this
important market participant would certainly enable use to take better
investment decisions.
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