Wednesday, August 31, 2011
meroLagani | Liberal margin lending fails to boost investors confidence
meroLagani | Liberal margin lending fails to boost investors confidence
Low dividend declaration by highly-rated banks and high interest rates is repelling investors from the stock market, spreading the gloom already running deep in the market.
Currently, daily turnover at Nepal Stock Exchange (Nepse) stand at less than Rs 20 million, far lower than the daily average of Rs 40 million last year, when the market was not performing well.
Stock analysts had anticipated the market to pick up, particularly after Nepal Rastra Bank (NRB) relaxed provision on margin-type lending and allowed banks to decide on margin call. The government had also promised large scale investment from public sector entities.
meroLagani | Market down by almost 3%, Nabil and SCB top losers
meroLagani | Market down by almost 3%, Nabil and SCB top losers
On the day of prime minister's election, NEPSE saw a steep decline losing 2.82% in the index. The drop was led by top heavy weights like Standard Chartered Bank and Nabil Bank Limited. The whole market sentiment was negative probably because of the certainity of Dr. Babu Ram Bhatarai being elected as the new prime minister of the country. Dr Bhattarai had called the stock market as "casino" in his tenure as the Finance Minister. The fall in the Nabil bank can also predicted as the reaction of the investors to the declaration of dividend of just 30%, investors were expecting somewhere above 50%.
Altogether, 63 stocks went negative on sunday's trading while only 6 stocks posted some gain. The major losers were Nabil and standard chartered, losing 10% and 9% respectively.
Tuesday, August 30, 2011
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