lower dividend pulling NEPSE

Over supply of shares, rising short term interest rates, lack of liquidity in the market and political uncertainty dragged the secondary market.

“Nabil Bank´s announcement of distributing only 30 percent cash dividend has discouraged investors. It also affected share value of Standard Chartered Bank. We expect share prices to drop further in the days to come.Some time ago, shares of banks and financial institutions were considered valuable as their prices used to jump multiple folds right after the initial public offering (IPO).Now the situation has changed with the banking sector witnessing liquidity crunch since January 2009.

“The investors, who have been holding bulk shares and those, who were under pressure from banks to pay loan and margin call might have started to sell pulling the whole secondary market down.”

Thinking Positively, we may expect the volume of our capital market will be more than double as CDS system to overcome the current traditional trend in the very near Future.

                                  ................................ HOPE!!