NEPSE index has come down significantly (866/16//11/2014). It may make things different for many people and areas. Many small traders might have disappeared already from the scene or will follow soon. Their holding capacity may be not so strong to resist such scenario. The insurance companies and Mutual Funds may suffer in areas of their investment as banking stocks as their major investment avenue have come down tremendously. If the insurance and hydro sector shares would fall big, banking sector would get more and more loss as the banks including other BFIs have invested in insurance and hydro-power companies. Though by a smaller fraction, their investment income would decrease. The liquidity scenario has not improved radically, there is added obligation due to bonus/rights shares issues and political environment not still so conducive for investment, this falling trend of share market would add salt to their injuries.
Due to uncertainties created by half hearted implementation of CDS,
complication in getting loan against demated shares, pressure on
clearing BT and negative mass market psychology together with unstable
and unpredictable political situation; we are in this situation.
Hence, NEPSE should implement CDS in full as soon as possible and change in date from Magh 2 would further erode investor confidence. The Rastra Bank should issue directive as soon as possible to flow bank loan against demated shares. Book closer date coming to end by next month for a large number of popular companies certainly that would clear the BT store. And, if at least these three factors would be in place, the mass market psychology of investors may turn to positive. The political course, we do not know and may be if other micro-level initiatives would be in place, the effect of political instability could be minimized.
For me and friends like my background who have seen NEPSE sliding to 290 from 1175; this is not a terror. We had flourished, got nearly bankrupt, became nervous and humiliated by none other than oneself, stood some how in fragile state, got some light, recreated hope, built some confidence, slowly started to stand firm, saw the darkness gradually thinning and once saw an orchestra creating wonderful waves of lovely music when NEPSE reached to 1083.
Therefore, I believe, this fall is nothing new for us and would not fall flat. But, other friends also who are particularly new, my advice is to hold firm and live life as normal as possible. Days are dark; days are sunny. In such situation, harvesting happiness is what we should concentrate on. Today, all my companies are going down except one. I am proud of that one particular company. For other companies too, I have sympathy. Without any fault of theirs, they have been suffering. Cure is there and they would start jumping one day when the environment would help them to flourish. May be, I am a diehard optimist, I am not sure.
Hence, NEPSE should implement CDS in full as soon as possible and change in date from Magh 2 would further erode investor confidence. The Rastra Bank should issue directive as soon as possible to flow bank loan against demated shares. Book closer date coming to end by next month for a large number of popular companies certainly that would clear the BT store. And, if at least these three factors would be in place, the mass market psychology of investors may turn to positive. The political course, we do not know and may be if other micro-level initiatives would be in place, the effect of political instability could be minimized.
For me and friends like my background who have seen NEPSE sliding to 290 from 1175; this is not a terror. We had flourished, got nearly bankrupt, became nervous and humiliated by none other than oneself, stood some how in fragile state, got some light, recreated hope, built some confidence, slowly started to stand firm, saw the darkness gradually thinning and once saw an orchestra creating wonderful waves of lovely music when NEPSE reached to 1083.
Therefore, I believe, this fall is nothing new for us and would not fall flat. But, other friends also who are particularly new, my advice is to hold firm and live life as normal as possible. Days are dark; days are sunny. In such situation, harvesting happiness is what we should concentrate on. Today, all my companies are going down except one. I am proud of that one particular company. For other companies too, I have sympathy. Without any fault of theirs, they have been suffering. Cure is there and they would start jumping one day when the environment would help them to flourish. May be, I am a diehard optimist, I am not sure.
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