Banking News – Vice President of the Stock Brokers Association of Nepal, Nitesh Kumar Agrawal, has attributed the current problem of the stock market to the weakening “demand side.” Vice President Agrawal said this while speaking at the meeting of the Finance Committee held on Wednesday. He cited the flow of money into pre-IPOs, the exit of promoters’ money, and transaction costs as the main reasons for the weakening demand side in Nepal’s capital market.

Additionally, according to him, the main reason the stock market cannot rise is the setback in the financial profits of every sector listed on the Nepal Stock Exchange (NEPSE). Banks and financial institutions have been hit by NPAs, in the insurance sector, the return on bank deposits in which insurance companies must invest 75 percent has declined. Similarly, the hydropower sector has currently been hit by floods. Thus, the “performance” of all sectors has been hit at present.

He stated that investor confidence must be enhanced for the stock market to rise. For this, he said every activity of the government and the state must protect it. Similarly, the stock market now needs new funds. For that, the globally scattered diaspora must be brought to Nepal.