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As stock market records new highs, Sebon urges investors to tread cautiously

Published On: December 1, 2020 07:05 AM NPT By: Republica  | @RepublicaNepal

Refrain from making investment decisions based on rumors and speculations, Sebon tells investors 

KATHMANDU, Nov 30:Securities Board of Nepal (Sebon) has urged investors to make investments in the stock market cautiously.

In a statement on Monday, Sebon—the securities market regulator—urged investors to make investment wisely and cautiously by considering global and domestic economic scenarios, financial status along with the corporate governance situation of the listed companies and risk bearing capacity, among other factors. The Sebon has also asked investors to refrain from making investment decisions based on rumors and speculations.

The statement of the Sebon comes in the wake of the recent stock market rally that has propelled the Nepal Stock Exchange (Nepse) benchmark index to a new high.

The Nepse benchmark index climbed up 28.79 points on Monday to end the trading at the record high of 1,997.06 points. Some analysts believe that the current stock rally at a time when the pandemic has hit almost all listed companies and ravaged the economy defies that market rationale.  

While terming the transaction volume and Nepse benchmark index reaching new highs in recent days a matter of happiness, the Sebon reminded investors that making investment decisions after analyzing established market norms and values, financial position and compliance status of listed companies and macroeconomic indicators would serve their interest.  

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