Experts Speak: What would be NEPSE's outlook after it resumes from Sunday?
Sun, May 24, 2015 12:00 AM on Experts Speak,
Raj Kumar Timilsina
President of Investors’ Forum
The overall indices will fall and the downward trend will prevail for some time. The insurance sector, especially non–life, will be worst-affected. Other sectors do not have much to worry about.
At present, people’s sentiment and selling compulsion are the two major factors that will affect the market.
It won’t take long time for the market to come back to pre-quake level. If we look at international trends, after a major crisis such as natural disasters the stock market has rebounded in one day, or in a period of 15 days to one month. In the context of Nepal, the overall recovery would be aided by funding mechanisms such as Prime Minister Disaster Relief Fund.
In order to tackle the problems faced by the insurance sector, insurance board has already asked insurance companies not to distribute dividends. There are also talks of requiring insurance companies to increase their paid up capital by issuing right or bonus shares.
Ambika Prasad Poudel
Share market expert
The market will stay down for a certain period of time. Expecting it to perform well anytime soon is vain.
All of the sectors would be affected, but insurance sector would be the one to be affected the most. In the insurance sector, it would be non-life insurance that would be hit hardest. The non-life sector would need some time to get back on its feet.
It is hard to say just now how soon the share market will bounce back to the pre-quake level but it would not recover immediately. It all depends on the sentiments of the investors. We need to see the market trends on Sunday, Monday and Tuesday to say when the market will come back to pre-quake level.
The overall indices will fall and the downward trend will prevail for some time. The insurance sector, especially non–life, will be worst-affected. Other sectors do not have much to worry about.
At present, people’s sentiment and selling compulsion are the two major factors that will affect the market.
It won’t take long time for the market to come back to pre-quake level. If we look at international trends, after a major crisis such as natural disasters the stock market has rebounded in one day, or in a period of 15 days to one month. In the context of Nepal, the overall recovery would be aided by funding mechanisms such as Prime Minister Disaster Relief Fund.
In order to tackle the problems faced by the insurance sector, insurance board has already asked insurance companies not to distribute dividends. There are also talks of requiring insurance companies to increase their paid up capital by issuing right or bonus shares.
Ambika Prasad Poudel
Share market expert
The market will stay down for a certain period of time. Expecting it to perform well anytime soon is vain.
All of the sectors would be affected, but insurance sector would be the one to be affected the most. In the insurance sector, it would be non-life insurance that would be hit hardest. The non-life sector would need some time to get back on its feet.
It is hard to say just now how soon the share market will bounce back to the pre-quake level but it would not recover immediately. It all depends on the sentiments of the investors. We need to see the market trends on Sunday, Monday and Tuesday to say when the market will come back to pre-quake level.
