Why NEPSE faces Bearish Trend in From 2022

NEPSE, the Nepal Stock Exchange, has faced bearish trends in recent days due to several factors. Some of the reasons for the bearish trend in NEPSE include:


 COVID-19 pandemic: The ongoing COVID-19 pandemic has had a significant impact on global markets, including NEPSE. The pandemic has led to a slowdown in economic activity, which has affected the performance of many companies listed on the NEPSE.


Political instability: Nepal has experienced political instability in recent years, which has contributed to a lack of investor confidence in the Nepalese stock market. Political instability can create uncertainty for investors, making them hesitant to invest in the stock market.


Limited liquidity: The Nepalese stock market has relatively low liquidity, meaning that there are fewer buyers and sellers in the market. This can make it difficult for investors to trade their shares, which can contribute to a bearish trend.


Reduced foreign investment: Foreign investment in Nepal has been declining in recent years, which has contributed to the bearish trend in NEPSE. This can be attributed to a lack of confidence in the Nepalese economy and concerns about political instability.


The high valuation of stocks: Some analysts suggest that the NEPSE may have been overvalued in recent months, which has contributed to the recent bearish trend. This can create a situation where investors are reluctant to buy stocks at high prices, leading to a decline in prices.


These factors, among others, have contributed to the recent bearish trend in NEPSE. However, it's important to note that stock markets are subject to fluctuations and can be influenced by a wide range of factors. As such, the Nepalese stock market may recover in the future as economic conditions improve and investor confidence returns.





 

Comments

Post a Comment

Popular posts from this blog

Why Entrepreneurs facing Challenges In Nepal

  Startups in Nepal face a number of challenges that can make it difficult for them to succeed. Some of the reasons why startups face challenges in Nepal include: <script async src="https://pagead2.googlesyndication.com/pagead/js/adsbygoogle.js?client=ca-pub-4728308312159415" crossorigin="anonymous"></script> Access to financing : One of the most significant challenges faced by entrepreneurs in Nepal is access to financing. The country's financial sector is still underdeveloped, and many entrepreneurs struggle to secure the capital they need to start or expand their businesses. Lack of infrastructure : Nepal's infrastructure is still underdeveloped, and this creates numerous challenges for entrepreneurs. Poor transportation systems, inadequate power supply, and limited internet connectivity make it difficult for entrepreneurs to operate efficiently. Regulatory barriers : Regulatory barriers are another significant challenge faced by entrep...
Read more

Accounting System used in Nepal

  In Nepal, the accounting system used is based on the Generally Accepted Accounting Principles (GAAP). The Nepalese accounting system is similar to the accounting systems used in other countries and is governed by the Nepalese Financial Reporting Standards (NFRS) issued by the Institute of Chartered Accountants of Nepal (ICAN) and the Nepal Rastra Bank (NRB). Additionally, Nepal has implemented the Nepal Financial Reporting Standards (NFRS) for Small and Medium Enterprises (SMEs) which are designed to meet the specific needs of SMEs in Nepal. The NFRS for SMEs has simplified reporting requirements and provides guidance on the accounting treatment of various transactions specific to SMEs. <script async src="https://pagead2.googlesyndication.com/pagead/js/adsbygoogle.js?client=ca-pub-4728308312159415" crossorigin="anonymous"></script>
Read more