Featured, Market Watch

Agyaat: Fear of Unknown & Uncertainity

Published by Octron on October 5, 2009

After a month vacation, I back to same marketplace – NEPSE. As I was having fun in the beaches of Malaysia, the stock market in my hometown seemed to have plunged deeply into dark sea. NEPSE falling down to 634pts, inflation hitting 14% and biggest national festive season Dashian approaching. The gloomy red zone in the trading floor was enough to camouflage the Dashain spirit. Dreadful dividend schemes from banks like Citizen (10 %), BOA (5 %) and above all NIB (20 %) was already dragging down the market, while book closure for Bonus Share for NABIL further dropped the market. So will the SCB book closure within this week will affect further in the Index.

Incidentally, the cash shortage during the festive season seemed to have void many people fun and mood, specially outside the capital. Despite having buying power with the consumers, traders were not able to tap in the cash with their fancy goods.

Despite, knowledge of why and how the market is behaving, the complete picture of the market trend is still under the wraps of future. The political deadlock do seem to ease a bit to draft the constitution memorandum, which would definitely have positive impact upon the share market. Small time players gained confidence and some accumulated cash during festive season will flow in the broker office soon. But, unless all the major political parties comes to an agreement table and draft the memorandum NEPSE will just take one baby step forward and three backwards. As our title suggests, Nepali share market players are gripped with Fear; the fear of political instability, the fear of lawlessness, the fear of economic crisis and above all the fear of Uncertainty.

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