KATHMANDU, Dec 2: Nepal Stock Exchange (Nepse) benchmark index climbed 44.38 points this week to close at 1,537.67 points on Thursday -- the last trading day of the week.
The stock market has seen a rebound in recent weeks as the election fervor grips the country.
While the investors seemed to be worried due to the election alliance forged by CPN (Maoist-Center) and CPN (UML), such fears seemed to have been allayed by the commitment from the leaders of the alliance toward upholding the liberal market values.
Earlier, the announcement of the 'left alliance' on the eve of the election had sent jitters in the market, pushing stocks down. The stock market was already on a downward trend since the last fiscal year due to rapid rise in the interest rates of banks and oversupply of stocks.
Against predictions that the election would lift the bearish stocks toward bullish, as used to be the case in previous polls, investors had grown wary of the left alliance forged immediately after the election date announcement. However, the stocks started recovering their prices as the election date drew closer.
The first phase of election which were held this week has boosted the confidence of investors, according to market observers.
"Initially, there were fears of left alliance among investors. However, such fears seemed to have evaporated gradually," said a broker, requesting anonymity as the Securities Board of Nepal (Sebon) has issued instruction not to make comment about the market movement. "The statements from the top leaders of the left alliance after freefall of stocks assuring the private sector including stock investors that they are committed to free market and liberal economy has helped investors to some extents that there won't be any major departure on the current economic policy of the country," added the broker.
COMMODITIES EXCHANGE REGULATION ISSUED
Meanwhile, the Sebon issued regulation last Saturday opening the legal door for the trading of commodities and derivatives in the exchange market.
The new rule that came to enforce the recently passed Commodities Exchange Market Act, 2017 allows exchange market to trade products from six different categories in the exchange market of the country.
These categories include agro, metal, precious metal, minerals and crude, oil and other products.
There are various products under these categories that can be traded in the commodities exchange markets.
Similarly, the board can add new commodities in the lists that can be traded in the exchange market as per the requirement. The commodities exchange should first prepare the contract of commodities and get it registered with the board before trading them in the market.