Market speculation on rise on political development

The share market has seen a huge speculative trend, in the last one month on the political development, which could not be sustainable in the long run.
The market that was performing poorly had suddenly jumped back to life with the latest political changes making enough room for the speculators to make money witnessing circuit breakers almost every day. And most of the days there was only half an hour trading due to the fast movement of the index both ways, which was not normal but could be fatal for the investors.
"The speculators made a huge profit on the latest political developments," according to share market analyst Rabindra Bhattarai.
“Though, political developments — positive or negative — encourages or discourages investors influencing their decision, the common people should not be influenced by the noise makers and must look for the company's profitability before investing on any company," he said, adding that the speculative market will not last long as it is not supported by the company's financial statistics.
The share market could have a sustainable growth only on the basis of the company's soundness of its return, though political changes have some influences but the latest market rally could not be sustainable, he said. "The capital market is the reflection of economy meaning it should be based on economic growth and the company's growth prospects."
Though, he opined that the domestic market has started to reflect the economic growth trend, such speculative market trend will not help sound growth of the capital market.
According to brokers too, the market has been behaving not normally, if not abnormally. "In a day, the market closed due to circuit breaker while gaining and losing both," a broker said, adding that the  movement was rather unpredictable.
But the domestic capital market needs time to mature, he said, adding that the investors will slowly invest based on company's financials and growth prospects, rather than speculating on the positive or negative news, though they will continue to influence the investors' decision.