As investors wait and see as confidence erodes, a big push is needed to push the market higher
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Looking at the trend of the stock market in the last few weeks, it seems that NEPSE is very hard to hold the growth path. Analysts say that the stock market is finding it difficult to hold the path of growth as the NEPSE tends to decrease on most days and is only positive by a small number even on the days when it increases.
Bank interest rates are at their lowest in nearly 47 months. Generally, there is a negative (indirect) relationship between bank interest rate and NEPSE. According to which, when the interest rate goes up, the stock market should go down and when the interest rate goes down, NEPSE should go up. But even though the interest rate has been continuously reduced, there is no sign of the stock market rising.
This trend of the stock market has been analyzed by analysts as investors' confidence has dropped, they are in a wait-and-see situation, and the market is looking for a big push. Narendraraj Sijapati, the former president of the Stock Brokers Association, has said that the trend of the stock market, where the trading volume is increasing but the NEPSE is not increasing, is that traders are more dominant than investors. They argue that the
market is dominated by the short-term trend of trying to earn in the short term rather than the long-term thinking, so the shares are bought many times and this has increased the transaction amount.
'This situation has come about because traders (traders) dominate the stock market,' Sijapati said, 'Now it seems certain groups are dominating the market. That group has raised the share price of a company and sold it. This is confirmed by looking at the situation of the companies that have been traded in the last one month.' According to him, the share price of companies that are not supported from anywhere in terms of fundamentals and technology is seen to increase, which is also a strong evidence that a certain group dominates the market.
On Wednesday, the NEPSE index, which measures stock trading, fell by 1.07 points. After decreasing by 0.04 percent compared to the previous day, the overall NEPSE closed at 2,653.68 points. The NEPSE, which increased by normal points on Sunday and Monday, decreased by a small point on Tuesday. On Wednesday, NEPSE also followed the trend of Tuesday.
