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Local Level Election Expected to Ease Liquidity Crisis      

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Local Level Election Expected to Ease Liquidity Crisis      
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January 31: The capital market has been buoyed by the ruling coalition’s decision to go for the local level elections.

The market, which had declined by 151.36 points last week, has increased by 105.55 points on the first trading day of this week on Sunday. 

On Sunday, the Nepse index closed at 2,885.53 points. Investors are excited after the ruling party agreed to hold the local elections in May. 

Vice President of Capital Market Reform Struggle Committee Tara Prasad Fullel said that investors are confident that a capable government will be formed through the upcoming local elections. He is of the view that the market will gain momentum this year as well like it did in previous years during the election. 

He says that the market has become positive on Sunday due to the tendency of investors to be active in raising cheap stocks when the market continues to decline. He further said the investors believe that the forthcoming election will bring liquidity into banks and financial institutions. 

The transaction amount has also increased on Sunday as compared to the previous trading day on Thursday. More than Rs 3.34 billion shares were traded on Thursday while on Sunday, shares worth Rs 6.32 billion have been traded.  

Api Power had the largest share in the total transaction amounting to Rs 261.516 million. 

As the market rises, the value of the investor's assets also increased by Rs 149.16 billion. Last Thursday, the total market capitalization stood at Rs 3.92 trillion which increased to Rs 4.077 trillion on Sunday. 

All group indicators have increased on Sunday. Investors of development banks and investment groups have earned the most on Sunday. The development banks’ group index increased at 6.56 percent and the investment group index increased at 6.35 percent. 

 

 

 

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