After three consecutive days of general correction in Nepse, investors are expecting positive


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Kathmandu: The stock market was moderately affected on Friday, the last day of the year. The NEPSE index decreased by 15.82 points and stood at 2223.78 points. Shares worth over Rs 1.29 billion have been traded.

The central bank on Friday released its third quarterly monetary policy review. No policy changes have been made through the review. Investors were expecting a 4-12 policy revision on share pledge loans. But monetary policy does not cover any of these issues.

However, there is usually no policy change in the third quarter review. Because there is only one and a half months left till the start of the new fiscal year. The new monetary policy is made public in the first week of July. At the same time, it can make major policy changes as per central requirements. For the same reason, the demands of the investors have not been addressed yet.

Now investors are really waiting for the budget. The budget is expected to address investor demands. However, the capital market has been given priority in the policies and programs of the government. On this basis, the forthcoming budget is also expected to be capital market friendly. The government has already announced to link capital market with productive industries. Similarly, the insurance sector is said to be linked to production and productivity.

From this, the government has given priority to the capital market and investors have expected capital market reform programs in the budget accordingly. Analysts say that it is time to buy shares in a planned manner on the basis of market price apart from policy issues. This is because the prices of companies have become very cheap when looking at the PE ratio, which is the method most commonly adopted by the general investors.

Looking at the 52-week average price, the price seems to have come down a lot. However, the market has not been able to recover due to lack of liquidity in the financial system and high interest rates. Similarly, positive investor psychology is also essential in the capital market. It is important for the general investor to have faith that the market will go up. The market is largely driven by psychology. On the same basis, the government and the regulator need to create an environment where positive psychology develops.

Investors should be able to learn about the market by improving policies and conducting share education programs. If this happens, the confidence of the general investors in the market may increase. More than 4.14 million shares of 223 companies have been traded on this day.

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