Yesterday, Nepalese stock market closed near one year low. On 1st March, 2017 index was hovering at 1326. Within a week on April 2017 it had made majestic jump to reach reach at 1709. Then after on July 2017, market made correction by lowering itself to 1541. Within a month from that, on August 2017 once again it touched 1660, then after it started falling continuously to reach last year level, currently it is hovering at 1345. It has simply taken back last year's gain. The NEPSE, witnessed almost 21% fluctuation within this year. Some sectors like Insurance, Hydropower and Mircro-finance are overvalued, whereas some Banks shares are currently trading near book value. Even price of high-growth and high earning companies are falling. We estimate that, about 30% of middle class household financial assets are invested in the stock-market. Most of them has utilized hard earned income to invest. Market is losing the value everyday. The middle class who anticipate positive growth from the market, now fearing that if authorities do not take appropriate response, current trend may wipe out their savings. We feel that, to avoid unnecessary fluctuations in the future strong policy reforms and positive sentiment towards capital market from government of Nepal is required.
