NEWS SOURCE: NEPALI PAISA
The stock market, which rose attractively for two days, corrected on Wednesday. The Nepse fell 26.07 points to 2,597.49 points today. More than Rs 6.77 billion worth of shares have been traded. Two companies are trading on positive circuit labels. All other group indicators declined except finance.
The NEPSE has declined as short-term traders dominate. Although the price increased by two days, the correction on the third day is considered natural. Market drops are normal if the transaction amount is. However, compared to the previous day, the trade has decreased slightly.
The market does not just continuously occur or increase. It tends to move forward through the middle. Therefore, Wednesday’s decline is considered normal and in accordance with the natural rules of the market. However, whether the average movement of Nepser is positive or not in the coming days will be an important factor.
The markets are set to go up. Therefore, despite some corrections, there seems to be a lot of talk that the journey upwards will be scheduled. Although, one can only speculate about the stock market, it cannot and should not be verified. The stock market has completed a long-term bearish cycle.
Due to the high liquidity in banks and financial institutions, the central bank is struggling to manage it. Interest rates have continued to fall. Listed companies have also started to increase profits gradually. Investors are also beginning to look optimistic about the market going up. According to brokers, new investors are also entering the country. Therefore, there are many people who say that Nepsele will gain momentum.
Therefore, for rapid market growth, the indicators and turnover should be gradually accelerating. Only then can the market move forward towards sustainable improvement. As the turnover increases, the supply in the market can be easily consumed. Which can strengthen the demand side. This is how you can raise share sisters.
The previous correction has made the market share very cheap. Those who have booked profits earlier are now likely to enter the buying process as the shares are again very cheap. The market can pick up momentum if buyers start becoming active.
Similarly, the government seems committed to stock market reform. The central bank is issuing policies to support the market. On this basis, analyzes are being conducted to travel above the market through correction according to the rules.
There seems to be less risk in buying shares now. Dividend season has run its course. Shares are cheap. These factors suggest that overall market momentum will remain positive in the coming days.
However, ordinary investors are more likely to invest in companies with strong financial indicators and good dividend capacity, taking into account their risk bearing capacity. You can study the company’s profitability, reserves, earnings per share, net worth, dividend distribution capacity, past dividend history, company directors and other factors.
More than 15.1 million shares of 310 companies were traded on the day. Nepal Finance topped the list in terms of turnover with more than Rs 207.1 million. Similarly, Himalayan Reinsurance and Goodwill Finance came in second and third place respectively.