November 22: Investors are eagerly awaiting for the impact of election on the capital market. Some investors are expecting golden days in the secondary market after the election. The November 20 polls were suspended only in a few places while the election concluded peacefully in most of the constituencies.
The investors are expecting a new government and a new dimension in investment after the election. Some investors who had been voicing for reforms in the share market joined the fray in election this time. Stakeholders believed that the share market will gain a lot if those advocating for the reforms of this sector get elected to the post of MPs.
The secondary market of Nepal with more than 5.4 million investors has been fluctuating since more the past one year. The Nepal Stock Exchange (NEPSE) index, which climbed to a record high of 3,200 points, has once again dropped to less than 2,000 points.
Investors believe that the election will have a positive impact on the share market.
Chairperson, Nepal Stock Market Investors Association
The share market has always flourished during the election year. The liquidity crisis in the banking system gets eased during the election. This will have a positive impact on the share market. This time our colleagues have also contested the election. We firmly believe that the problems of the share market will be resolved if they win the election and become MPs. Although there are laws to govern the share market, it is important to implement them. I firmly believe that the new government will work towards enhancing the share market.
Former Chairman, Nepal Investors Forum
The share market has received positive indications ahead of the election. Remittance inflow has increased and is in an increasing trend. This is also a good sign for the economy and the capital market.
The liquidity crisis is also improving of late and the interest rate is also declining. The NEPSE index has fallen from 3,200 points to 1,900 points. The share value of most of the companies has fallen. If anyone invests in share at this moment, there is 20 percent risk and 80 percent return.
Ambika Prasad Poudel
Chairman, Capital Market Forum of FNCCI
The number of stock brokers is increasing and a new stock exchange company is in the offing. The process of book building is also moving forward. The stock market index is also rising slowly. Remittance inflow graph is also increasing. The Balance of Payments is also positive. The foreign exchange reserves are also improving and the CD ratio is also getting better. The arrival of tourists is also improving with the decline in coronavirus cases. The capital expenditure is expected to be better after the election. All these positive indications show that the share market will become better in the coming days. However, the capital market depends on psychological factors. If the investors are positive, then the share market will head towards the right direction.