Market Watch

19% Promoter Shares Approved – NEPSE in deep red zone & Investors Outcry !

Published by Octron on November 13, 2009

UPDATE The approval has been withheld for the time being, until next annoucement.

What more bad news could investors expect in this bearish market ?

Shares of blue chips has been already selling lower than potato chips, SEBON approved 19% promoters shares to be converted & traded as ordinary shares. The big jolt was felt in yesterday’s trading itself with double digit NEPSE dip. On the one hand, the political disturbances (Maoist protest programme) had already planted uncertainty in investors mind which caused panicked investors to offload their large chunk of scrip’s in the market. The overflow of the scrip’s in the market will just bring the complete market down. As per the trade pundits, in the forthcoming weeks the market will just turn redder with the bearish trend. The NEPSE will hit rock bottom like NEVER BEFORE, unless the approval is objected or rectified.

Some of the biggest investors in stock market are once again turning back to realty market. People who have been playing the field for almost a decade are trying cut themselves off the market. We had an opportunity to chat with some of the major investors in the market from small to big players regarding the recent approval of policy.

Mr. Ramesh Khanal at Broker No. 22, been in the market for more than 5 years now. He claims to have earned more than 1 Cr. from the market in the past.

The stock market is just reflection of our country’s politics. As there are monkeys both running the government and donkeys opposing the government, same is the stock market. People who have no background or idea about economics, market and policies are approving policies. Beware investors, stock market is not a place to be right now.

Mr. Srijan Manandhar at Broker No. 12, New entrant in the market, just a year old. He claims to have made around 1 Mio profit till date.

When the market is already going through such rough phase, why the board had to give decision right now ?
Even without proper plan like how to float those shares?
They simply announced the approval notice. Have they gone nuts!
NEPSE is bound to slip more and more below in coming days as people will load off all the scrip’s even at crappy price.

Mr. Amod Baidya at Broker No. 7, had played both in IPO’s and secondary market aggressively for past 3 years. He claims to have made good profit through primary market shares than secondary.

Kahin Nabhayeko Jatra Handigaun Ma…
Even a 10th Standard student has better understanding about Supply and Demand than this government.
The market is already overflowed with recently listed primary shares & right/bonus shares, the market is already slipping down day by day. Bloody board approves everything that comes into their way.
Stock market can now be re-christened as Crematory.

Investors have reacted very strongly against the recent approval. While the promoters, who are currently holding their shares are merry making hoping to turn their Rs. 100 share into Rs. 2000. The voice is loud and clear; many investors will be leaving the market soon by selling off most of their shares. They might turn into more lucrative options like realty, housing, gold or simply FDs.

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