Monday, November 30, 2020

Regulator warns investors to be cautious in share trading

 Issuing a press note today, the stock market regulator – Securities Board of Nepal (Sebon) – has advised investors to make investment in the share market with caution.

The warning comes in the wake of the recent share market rally that has propelled the Nepal Stock Exchange (Nepse) benchmark index to a new high. As the share market has been looking up and breaking records everyday, the Sebon has urged the investors not to fall prey of gossip, and invest wisely and cautiously. 

Asking the investors to refrain from making investment decisions based on rumors and speculations, the regulator also urged investors to make investment considering global and domestic economic analysis, financial status along with the corporate governance situation of listed companies and risk bearing capacity of oneself.

The Nepse index climbed up by 28.79 points today to close the intra-day trading at the record high of 1,997.06 points, the historic record.

The stock market rally in the times of pandemic that has bleed the economy has been questioned, though the investors – due to lack of other investment avenues – are flocking to the share market. 

Thus, the Sebon reminded investors to make investment only after analysing established market norms and values, financial position and compliance status of listed companies and macroeconomic indicator.

But the investors have been claiming that the Nepse index is going to cross 2,000 points this time, also due to flush cash in the banks and financial institutions, and low interest rates.

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