Rabindra
Adhikary
Share market of Nepal was suffering an abysmal fate
for almost 3 years. Enter the month of Shrawan—the month of green, there is
green all over in the Nepse charts. Yes,
when we look outside, this month is replete with green landscapes with the lush
of paddy and corn and jungle greens. Coincidentally, Nepali Hindu women are
also all clad in green clothes in order to showcase their devotion to the lord
Shiva. From the second day of Shrawan, Nepali stock market as well is clinching
its height declaring a sign of ‘bull.’ One can debate that this uptrend of
Nepse Index is simply the ripple effect of the market overseas—as we saw
record-breaking indices over a year from America, Europe, Japan or India, but
the local factors have an enormous role in the making. Here are seemingly three
strong reasons the share market has shown an optimistic jump from the long-time
bearish sentiment.
1.
The Bishnu Poudel Effect
Here we are constrained to coin a new term called
the Bishnu Poudel Effect in the Nepali stock economy because, history has it
that, whenever Bishnu Poudel comes in the incumbency of a finance minister,
there is an aggressive bull jumping off. Not only are his overtones positive
for the market, he is quite into actions for the betterment of it. This
previous knowledge of investors and traders made them confident in funneling
more money into the market starting from the day 2 of his appointment as a
finance minister.
2.
Political clout of old parties
Now we are witnessing old players in power: CPN UML
and Nepali Congress. They have made quite a history right after the 2046
revolution when multi-party democracy was announced. From the bureaucracy to
businessmen, they have strong grounds to be entrusted with, which are, in fact,
acquired cumulatively for over 35 years. Many of them are the background
operatives of these parties which are also involved in share market investment
and trading. This trust has been translated to the market. To the outsiders,
this skyrocketing has played an impetus to stock investment, and furthermore,
there are ample reasons to believe that the coalition of two major parties will
bring long-sought political consistency that will eventually buttress the
economic boom. This has also served for the massive turnovers up to 15 billion
in a day.
3.
The Mahaprasad’s Monetary Policy
While Mahaprasad Adhikari, the governor of Nepal
Rastra Bank, has been constantly chastised for employing stringent policy to
strangle the share market, with the KP Oli assumption in the premiership, the
duo’s widely known relationship has bestowed a uniquely optimistic charm in the
face of share-market stakeholders. Yes, ‘MP Adhikari’ has singular ties with
CPN-UML and KP Oli which will definitely be useful in making the Oli government
successful and one of the indicators to make it so will be seen when the share
market is flourishing. On top of it, the same MP Adhikari’s tenure is going to
expire in coming months and he has something to prove that he was not in all
the way to enervate the stock market. All things are on the upside, because
monetary policy is coming and it is very well serving the interests of people
involved in share-market, real-estate and the industries.
No doubt that the low interest rate offered by the bank and financial institutions also has provoked Nepali citizens to divert their money to share market wanting a better return.
0 Comments