Lets Talk, Market Watch

Bullish Trend: Driving Force

Published by Octron on May 27, 2009

Year long draught finally seems to have come to end. Recent 3-4 days NEPSE trend clearly indicates once again the bullish trend has come in the market. While different people have varying opinions regarding the force behind the rising market trend, here are some of the major reasons which I believe the major forces behind the recent dramtic turn around in the market.

After resignation of former Maoist Prime Minister Dahal and formation of new government with new prime minister Mr. Nepal, share market is turning into bullish trend with steep rise in share prices of most commercial banks. The top level banks like SCB, Nabil, NIB, EBL, HBL share price is skyrocketing with incease of ard. 5%-10% each day. While, second level commercial banks BOK, Laxmi, Kumari, GBL, etc is slowly climbing the ladder. One of the major reason market was going through the bearish trend was uncentainity of the previous government. It was not just their golden promises which they couldn’t meet, but their suspicious double character nature were more than enough to threat people to invest in the share market.
10% VDIS, even after VDIS various raids, bank account balance checking, successive extortion cases of national icons, eminent businessmen, on going strikes, price hikes, etc was just dull enough to put people off the market.

With complete fall down of the old government has just sow the hope in investors (small & big) mind to once again ride upon the stock chariot.

The recent annoucement unaudited of profit reports of various commercial banks by NRB provided extra boost to drive the market after nearly a year long bearish market. Even the most cursed & discarded shares like NTC is picking up, touching original premium IPO Price (>Rs. 600). Investors are hoping good harvesting from these highly profited banks in terms of bonus shares, right shares or atleast good dividends.

Thirdly, and most importantly, the spike in NEPSE is always sign of some market players. In any stock market if there is consecutive spikes despite any major annoucements from the companies, then it might be case of some big players trying to play the ground. Unfortunately, our market is driven by opinions instead of facts. So, beware after running after artificially hiked shares by rumors like 100% cash dividends or 1:3 right share issues. The satta bazari might be playing the same NTC game once again.

Any more forces. Please share with your comments.

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