Nabil Investment Banking's CEO - No logic for the entire market to fall

It’s good that the market rebound today. Nonetheless, only yesterday I had told on one of the leading television stations (Kantipur TV) that there is no logic for the entire market to fall the way it did on Sunday, or day before that or day to day before that.  See, it’s not that there aren’t ups and downs in the market.
It was also logical for one or two sub-indices to have major correction if we look at the way they dramatically surged over a brief period of time. But the fall in all the sub-indices, especially the banking group, simply defied logic. There is no reason whatsoever for the banking group to lose so massively when most of them are surpassing investors’ confidence when it comes to their core business and returns they have been announcing. Hence rational investors, including institutional investors like us do not understand the way the entire market fell when all the macro-economic indicators are sound.  Actually only a few of the sub-indices should have fallen.

If you ask me the reason the market fell is panic selling by not-so-experienced retail investors as well as the tendency among the general investors to take short-term positions for minor gains. Now that the investors seem to be re-gaining confidence, the market should start to stabilize and consolidate the gain. Here I would also like to urge the investors, especially those who lack expertise of the market to please approach professional portfolio managers or simply invest in the mutual funds. If you not sure what is actually happening in the market, or how good or bad a certain company is, you should take expert advice or service, rather than selling your stocks in panic or buying them on the basis of rumors.- SSN

Pravin Raman Parajuli
CEO, Nabil Investment Banking Ltd