Reasons Why Stock Market of Nepal is not going UP | Stock Market Update Nepal | Durga Prasai

Reasons Why Stock Market of Nepal is not going UP?
1.Economic slowdown: The Nepalese economy has been facing a slowdown in recent years, with GDP growth declining from around 7% in the mid-2010s to around 3% in recent years. This slowdown has been caused by a number of factors, including political instability, a lack of infrastructure investment, and a decline in remittances from abroad.
High inflation & Ineterest Rates: Inflation in Nepal has been running above the central bank's target of 5% in recent years. This high inflation has eroded investor confidence and made it difficult for businesses to plan for the future.Due to high rates investors are not interested in loans.Due to this there is now much demand in the market for stock buying.
Lack of liquidity: The Nepalese banking system is facing a liquidity squeeze, which has made it difficult for investors to borrow money to buy stocks. This liquidity squeeze has been caused by a number of factors, including the central bank's tight monetary policy and a lack of foreign exchange reserves.
Poor corporate governance: Many Nepalese companies have poor corporate governance practices. This has led to a number of scandals in recent years, which has eroded investor confidence.
Small and illiquid market: The Nepalese stock market is small and illiquid, which makes it difficult for investors to enter and exit the market. This illiquidity has also made it difficult for the market to reflect the true value of underlying assets.
In addition to these five reasons, there are a number of other factors that could be contributing to the Nepalese stock market's poor performance. That is related to politician Durga Prasai, who is continuously hitting the banks and financial institutions.
Despite these challenges, there are some reasons to be optimistic about the Nepalese stock market. The country has a young and growing population, and its economy is expected to pick up in the coming years. The government is also taking steps to improve corporate governance and make the market more liquid.
Overall, the Nepalese stock market is a high-risk, high-reward investment. Investors should carefully consider the risks before investing in the market.
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#DurgaPrasai

[@SureshYadav-wp2ed]

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[@yamg7223]

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[@shantakumarshrestha4623]

Your analysis is absolutely no