Stock investors want central bank’s support
Investors asked the central bank today to bring policy to boost the capital market confidence rather than discouraging them.
Any decision the central bank takes about the banks and financial institutions will affect stock market, said president of Nepal Investors Forum Raj Kumar Timalsina.
Since they have invested hugely in the stock market , the central bank should protect them, he added.
Presenting a seven point-reform agenda for the stock market, they asked the Finance Ministry to give the necessary instructions to the central bank to be responsible.
Currently, the stock market is losing heavily without any specific reason, and the investors should not panic and lose confidence, he added.
The economic indicators are good, and there is enough liquidity in the banking system – that could propel the stock market – besides stable political situation, Timalsina said. “The listed companies including banks and financial institutions are declaring good dividend.”
However, Nepse has lost some 208 points in the last 47 days to close the market at 875.56 points today, though it had touched 1,083.55 points on July 21.
Rise and fall in stock prices is a regular phenomenon, adviser of the Nepal Investors Forum Atma Ram Ghimire said, suggesting investors not to rush to offload their stocks, when market goes down. “Investors should study the company’s fundamentals before trading, rather than following rumours.”
Likewise, the investors also asked the government to encourage real sector companies Including cement factories, hydropower companies, telecommunication companies, goods and beverage companies and schools and colleges to end the dominance of banking sector in the stock market.
Currently, there are 184 are banks and financial institutions and 22 are insurance companies among the total 240 listed companies at the Nepse.
Fully operational of CDS and Clearing to facilitate complete automation of stock trading, more mutual funds and institutional investors will also help boost stock market, they suggested, asking the government to allow Non-Resident Nepalis and foreign investors to invest in the stock market.