Speaking at a press meet at Nepal Stock Exchange (Nepse) today against the backdrop of unprecedented fall of the Nepse benchmark index,he said that the market is bound to take a leap in the days to come.
“The market remained at a low index for years. The investors are safe. You can invest with confidence. The market will obviously jump. The capital market future is golden,” said Dr Nepal.
Dr Nepal said that the PM was concerned about the recent downfall of the market.
“The Prime Minister is in favour of the market economy and he is serious about the recent downturn of the market,” PM’s Economic Advisor Dr Nepal said.
He also said that if the current fall of the market continues in this rate, this will invite a serious consequence in the country’s economy. “Capital market is the prime instrument of the country’s market economy. The market has gone down by 5 percent in a single day. This is really a matter of serious,” he added.
Indicating to the recent directives of the Nepal Rastra Bank (NRB), Dr Nepal also said that any rules and regulations that affect the capital market should come only from the Sebon.
“Nobody is allowed to change the rules and regulations of the capital market. If anybody tries to do that, it means they are moving toward damaging the capital market,” said Dr Nepal, adding, “IF NRB, Company Registrar Office or Beema Samiti is bringing the directive that affects the capital market, they should consult the Sebon before bringing that.”
Sebon’s Director and spokesperson Niraj Giri urged the investors to make prudent decision.
“The market is dominated by the retail investors rather than the institutional investors. They are sensitive about the minor movement of the market. They should not panic on the current situation. The confidence of the investors should be strong to avert further fall,” he said.
“This is not the time for the market to go down at such a massive level if we analyze the trend. The return of the BFIs is good and the country’s economic situation is also heading toward proper direction so there is no reason for the market to go down. We have been requesting the institutional investors like Citizens Investment Trust, Employment Provident Fund to make investment for stabilizing the market.”
Likewise, Sebon’s Director Paristha Poudel said that the market will further plunge if the investors all rush to sell their scrips running after the rumors and speculations. He also informed that the Sebon has been requesting the NRB to consult the former before issuing any circular that impacts the capital market.
“We are requesting the NRB to discuss with the board (Sebon) before bringing any directives that matters capital market.”
Nepse’s general manager Sitaram Thapaliya said that the investors’ weak confidence was pulling the market down. “Almost every indicators of the economy is fine. There may be baseless rumors doing the round from which the small investors have to ignore. The investors have to maintain patience rather than following rumors. Otherwise, it will be the small investors who will be duped,” he warned. (Please also read the press released issued by Nepse today, we have attached below)
The Sebon is also preparing to issue an official press statement within couple of hours to make its opinion regarding the recent volatility of the market. - SSN
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