This week, we may see the turn around in the market. All regulators have shown concern and have signaled that they will act if some vested interest groups try to create abnormal situation.
The Finance Minister also has shown his concern about the volatility in the market and has said that he will depute an officer to keep eyes over the market.
The worst culprit of the panic this time - the NRB also might have learned a lesson as its headless bureaucrats and "hand-in-glove" type officials cum share market players brought bad name to it in an unprecedented scale, manner and intensity. If Governor Khatiwada himself is a big market manipulator and beneficiary of such manipulation, there could be still harmful policy interference from NRB. Otherwise, the NRB will learn to behave after such severe criticism and loss of face.
The manipulators themselves must have bled a little and such concerted action from their part also will be much less at least immediately. The CDS is very close to come into practice and these manipulators will not dare to venture in such mission before they discover the ways that would help them to exploit.
The big 6 brokers also, may be, have cleared their BTs shares (purchased and hold by themselves in strict sense of ethics "illegal") by now.
The dividend percentages the companies announcing are encouraging except EBL.
All negative factors loosing their strengths and positive factors strengthening, I believe, the market must go up.
Personally, I am in favor of gradual increase of the market - no circuit breaks. These circuit breaks are welcome once in a blue moon, but they invite unnecessary turmoils in the market. Hence, if there is sustainable growth - gradual, nearly covering all sectors, is what we should be happy with.
Sector-wise, insurance may remain a bit volatile, hydro-power recovering a bit and BFIs including commercial banks, development banks and finance companies may go up. Many MFIs have become a bit glamor companies and may remain volatile like most of the insurgence companies.
May be, some profitable companies to buy for the investors: CHCL, SBL, NBB, EBL etc
For traders: It is better to wait a few days to understand the trend clearly.
OVER ALL: BUY/HOLD.
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