The stock market has experienced a significant downturn following the National Independent Party-led government’s pressure on traditional political parties and emphasis on asset purification. Despite the arrest of the CPN-UML chairman and former Home Minister, and the UML’s street protests impacting political stability, stock investors remain cautiously optimistic. Although the Nepal Stock Exchange’s NEPSE index has displayed a bullish trend, experts argue that market improvements are necessary due to recent government decisions.
Kathmandu, 30 March – In the hope of political stability after the Gen Z movement, the stock market initially exhibited a ‘bullish trend,’ but experienced a sharper decline than expected this week. The National Independent Party (RASWA), which received nearly two-thirds mandate in the 7 March House of Representatives election, has pressured traditional political parties, neglected the stock market at the governmental level, and prioritized asset purification, leading to a major drop in the securities index.
An investor commented on the government’s tough stance against traditional political parties, stating, “The market is progressing toward long-term improvement.”
