The Nepse index hit the circuit breaker just 30 seconds before the market would naturally close for the day, posting a massive growth of 5.08 percent to close at 920.06 level.
This comes in stark contrast to the last trading day in market on Sunday when the market had closed after hitting the lower circuit breaker of 5 percent.
The market did the U-turn as the investors, including the retail ones, regained confidence following a series of serious and honest initiatives taken by the government, regulators as well as other key stakeholders in the share market to instill confidence in the market.
The market today was largely propelled by the Banking group, which covers around 80 percent of the total market capitalization, as the sub-index surged by awesome 6.58 percent.
Ever since the market shed 5 percent on Sunday for no valid reasons for the downturn, the Prime Minister’s economic advisor as well as officials with the Finance Minister, Sebon and Nepse have come forward to allay the irrational fear of the investors and to urge them not to off-load stocks to bring the market further down.
The market is in the green zone today also because the central bank has also repeatedly clarified that it has no intention of bringing the market down by tightening marginal lending or market, especially during the time when there is surplus liquidity in the banking system.
On top of that BFIs have been offering one after another impressive dividend for the last fiscal year, and the insurgency companies are about to declare mouth-watering dividend within a few weeks.
Golden opportunity buy stocks
Now that the market is rebounding and the prices of most of the stock are still very low despite offering impressive dividend besides favorable macro-economic condition, including surplus lidquidity in the capital market, the smart investors realize that it is a golden buying time for them for a number of strong reasons: the market has reached a low point when BFIs and other listed companies are coming with impressive dividend. If anyone buys the shares of one of those good companies they are sure to get dividends for two fiscal years within 14 months.
On top of that the market is almost sure to rebound to around 1,000 level, mainly propelled after Tihar, according to experts.
Most importantly, over the recent days Nepse and CDSC has also been very eager to take the market to a new height by becoming very sincere and serious to launch full-fledged CDS as soon as possible.
To further facilitate the process, CDS has just clarified that investors having the securities on the physical format can sell their scrips while the buyers buying the shares on whatever format will, however, get the shares on the demat format with the paper-less trading coming into operation from Ashoj 20.
It may also be noted that Sebon, which has now become very serious about the market and has been actively trying to find out why the market is falling down despite no valid reasons, has also been speeding up the process of giving permission to more and more mutual funds to create the market depth as well as plenty of buying position. - SSN
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