New Beta Version of website: http://newweb.nepalstock.com.np Nepal Stock Exchange Nepal

The new beta version of website of Nepal Stock Exchange is out for public and requesting public to provide their valuable inputs to make it more user friendly and effective.

As previously it has following sections:

Today's Price
Market Depth
Floor Sheet
Downloads
Contact Us
Video Tutorial
Old Website

And we are yet to see what is placed in Investor Awareness. Please share your thoughts about what we are expecting on this section. 

Discount Investment Shares, Bonds seem too risky to invest

Shares and bonds of Discount Investment Corp. (DISI) are sliding downwards because investors are questioning that the holding company may struggle to repay debt after an IPO of a subsidiary was pulled by the company.

Discount’s 2.8 billion shekels ($725 million) bonds due  Dec. 2025 got the yield of 4.95 percent and it raised 1.3 percentage point to 7.39 percent, the highest this year. But its stocks plunged 24 percent to 9.50 shekels. This means that they have dropped 62 percent this year. On the other hand, shares of parent IDB Development Corp. dropped to 2.135 shekels, which is 17% down.

The world's largest generic agro-chemicals,Adama Agricultural Solutions Ltd. failed to make agreement with investors on pricing. Then it postponed an initial public offering. Currently, Discount has 40 percent of Adama. However, IDB seems to wait for a successful IPO to inject value into the company and refinance debt. IDB has Argnetine businessman Eduardo Elsztain and Moti Ben-Moshe. After Nochi Dankner failed to bring in investors for the company to repay debt, he stepped down.
Yaniv Pagot, chief strategist for Israel-based Ayalon Group Ltd, said,“The company has enough cash to repay debt comfortably till 2016, but what will happen once that cash ends, from 2017 onwards?”
He added that Discound could have used valuation of Adama as collateral to refinance debta and raise additional funds by selling shares in a secondary offering.

At the end of June, Discount had cash and cash equivalents of 1.86 billion shekels and according to the second-quarter result, it had net debt of 3.4 billion shekels.

U.S. stocks fall as Fed ends 6-year effort to stimulate economy, Facebook down by 6.1%

The unemployment rate is now 5.9%, its lowest mark since QE began. There are over 8.5 million more people employed now than in November 2008, according to the Bureau of Labor Statistics

Federal Reserve confirmed that it will end it's asset-purchase program due to stable growth path of U.S. economy. It caused stocks decline in U.S.  The decision provides a strong base on how much the economy has improved since the recession. This decision ignited a down rate in U.S. stock market.

Facebook dropped 6.1 percent to $75.86, the most since March. 

Facebook Inc. predicted the slowest revenue growth since the first quarter of 2013 and it lost 6.1 percent after that prediction. Facebook dropped 6.1 percent to $75.86, the most since March. The owner of the largest social-media website projected fourth-quarter sales that missed the highest of analyst estimates. Facebook also said spending would increase 50 percent to 70 percent next year as the company hires more and invests in newer products.

The Standard & Poor’s 500 Index (SPX) slipped 0.1 percent to 1,982.30 at 4 p.m. in New York, trimming an earlier slide of 0.8 percent. The Dow Jones Industrial Average lost 31.44 points, or about 0.2 percent, to 16,974.31. About 7.3 million shares traded hands on U.S. exchanges.

"It's in response to the Fed acknowledging the improvement in the economy, the improvement in the labor market and the diminished risks on the inflation side of things," says Greenhaus. Dan Greenhaus is a chief strategist at market research firm BTIG in New York.

S&P 500 down 7.4 percent from an all-time high of 2,011.36 in mid-September through Oct. 15 because of huge concerns that Europe will be going into recession just as Fed bond buying ends. But there is still positive part as well.

60 percent of the S&P 500 companies have surpassed revenue projections and 80% have beaten the estimated earnings.

GlaxoSmithKline's shares rose 4% after its third-quarter results slides it's way beyond expectation and announces to return an additional £4billion to shareholders by a special share scheme. GSK is one of the world's biggest drug manufacturer and now it is on rise. The UK pharmaceuticals giant published a pre-tax profit of £548m till the end of September for three months. It is way more below than £1.4 billion a year ago. Even then,the results beat analyst forecasts.

U.S. Steel (X) advanced 5.1 percent to $40.08. Company reported more than estimated earning with the help of the quadrupling of flat-rolled steel sales.earnings.

European Market is upbeat, perhaps too upbeat while US financial markets are closely interconnected with European market, the impact is yet to be seen.

In April, the IMF had predicted that global output would grow by 3.6% in 2014 and 3.9% in 2015. 

At an event in the Robert Schuman Foundation in Paris, IMF head Christine Lagarde said that Europe continues to face important challenges concerning its long-term future and markets might be at risk of being too complacent. She said,"The good news is that the European economy is recovering from the crisis. Confidence is improving and financial markets are upbeat. Perhaps too upbeat."
She has warned that financial markets maybe a little too upbeat given the persistently high levels of unemployment and debt in European economies. She added that growth prospects in the region could be undermined due to continuing low inflation. Currently the inflation in  eurozone is 0.5%.

On the other hand, she was optimistic that European economy was recovering and until demand starts to rise, interest rates should remain low. European Central Bank prefers inflation close to 2%. Being optimistic she said,"Confidence is improving and financial markets are upbeat, perhaps a little too upbeat."

The European Central Bank cut its main interest rate to 0.15% last month. ECB chief Mario Draghi has since said interest rates will remain at their current level for an "extended period of time in view of the current outlook for inflation".

While ECB has become the first major central bank to introduce negative rates.It also cut its deposit rate - the rate it pays banks to keep money on deposit - to -0.1%

Confidence is improving and financial markets are upbeat, perhaps a little too upbeat.

Lagarde said,"Monetary policy should remain supportive until private demand has fully recovered" and the ECB "has achieved its price stability objective." She added,"There is a danger of a vicious cycle - persistently high unemployment and high debt-to-GDP ratios jeopardize investment and lower future growth."
"Global activity is picking up but the momentum could be less strong than we had expected because potential growth is weaker and investment ... remains subdued," she told.

She said,"Looking at emerging Asian countries, and in particular China, we are reassured because we do not see a brutal slowdown but rather a slight slowing of a growth that has become ... more sustainable and that we see at 7-7.5% this year."

In April, the IMF had predicted that global output would grow by 3.6% in 2014 and 3.9% in 2015. The information of IMF slashing US economic growth rate is there in the market. IMF slashes estimate for US economic growth in 2014, the annual review cut its growth forecast to 2%, citing a harsh winter, weak international demand for the country's products and problems in housing market.

After the financial crash of 2008, many nations across the globe have to restructure and re-balance their economies. While others were recovering substantial sovereign and bank debt led the euro zone to fall back into recession in 2011. In the summer of 2013, eurozone economy managed to expand again, but has failed to build on that with growth of just 0.2 percent in the last quarter compared to the previous period.

"More developed and diversified regional capital markets can support innovation, investment, and long-term growth," Lagarde said. "Deeper integration with world markets would improve productivity and plug countries into global supply chains."

World Markets affected by geopolitical unrest.

World markets plunged down on Friday after Malaysian Airlines Plane crash. The tension in Ukraine affected markets world wide. It has been said that the Flight MH17 was brought down by a surface-to-air missile over a region where Ukrainian government forces and  pro-Russian rebels are fighting.

As the news of crash spread, Japan's Nikkei tumbled by 1% and Germany's DAX fell 0.35%.


Russia and Germany has close trading ties, and it's been anticipated that Germany might lose more than most from a deepening crisis. After the crash, Moscow is going to experience pressure from the world to resolve the conflict between Russia and Ukraine. Such political unrest has affected markets around the world.

On the other hand, aviation stocks are falling in Malaysia, it fell by 0.4%. Four months earlier Flight MH370 disappeared, this is the second tragedy to hit the airline business this year.
After the attack, the most actively traded stock in Kuala Lumpur, Malaysia Airline fell by 11% while Malaysia Airport slide down nearly 5%.


While the tension spread and Russian stocks were also on the slide, extending Thursday's losses triggered by the announcement of new U.S. sanctions targeting leading Russian energy companies and banks on the other hand, the West is trying to pressure Moscow into ending its support for the rebels in Ukraine.


Investors were further thrilled when Israel sent ground troops into Gaza.

On Thursday, US stocks were also seen affected : the S&P 500 declined about 1.2%, the Nasdaq slid 1.4% and the Dow closed down almost 1%, the drop for the Dow was the biggest in two months, and the S&P's fall was the steepest in three months.

While stock markets were falling gold price was up 1.5% higher. The VIX index, which measured market volatility rose up by 36%.


While these events affected world market after the news, Wall Street bounced back Friday.

What type of person you are? Bond holder or Stock Holder?

There is various differences between Stocks and Bonds, but both are used for capital formation.

Diffen is also clear about the various dimensions we can find distinct about these two. 

In this post we are discussing about what kind of person you are and what should you be holding. 

Characteristics of Bond holder:

1.  They are not interested in trading bond after holding it. They might sell sometimes but not like the way stocks holders do.

2.  Bond holders wait for interest.

3.  They own the bond of public sector authorities, credit institutions, companies and supranational institutions.

4.  They are attracted by the constant return they will get in regular time interval.

5.  They avoid the risk as much as they can. They don't want to worry about the stock price they hold.

6.  The inflation worries bond holder.

7.  Interest rate affects the opportunity loss.

8. They are committed for long time. And it's really a long time.

Characteristics of Stock holder:

1. Most of them are always the traders and rest don't care, they simply hold. More than that, they are owners of the company. They own certain portion of the company whose stock they hold.
2. Interest rate, inflation and maturity periods are least considered by a stock trader. These things does not force the stock traders to hold or sell his stocks.
3. They have their own rules for playing in stock market.
4. Stock holders do not settle for certain amount of money for regular interval of time.
5. They seek opportunity in loses. They lose sometimes and they gain sometimes but they don't depend on certain amount for stability.
6. They diversify and they are always up to date.

What most people do?

They invest in both. They invest in bond as well as share. They choose to invest in highest paying bond and they learn when to sell. This is used for minimizing the risk.

Decided which type of people you are after reading the characteristics? Please feel free to express.

Feeling stressful is not a compulsion for stock trader, it's a choice.

We all find various things in our life which causes disappointments. There are so many things which go in a way we never anticipate. As things like that happen, we as a normal human being feel sad. When things are beyond our control stress starts to rule our mind. We feel that we are bound to do something that is not in our control. Then the result is a stressful mind. But it's not that stress is completely a bad thing. The main theme is the balance between various aspects of life.

As a stock trader when your money is on the verge of predictable loss, in some situations when the price of stock a trader has invested falls down seriously, the fear of loosing money might even haunt the trader even in sleep. Its emotional part of stock trader.This definitely causes high stress level in traders. That is why so many people are broker now. Rather than investing their own money and multiplying their wealth, they are all taking commissions and investing others money. They feel secure in such type of activity because they are not investing their money. It's the other people's money and they are free from the risk.

The main reason a person feel stress while trading stock is the change that could happen in stock price. There is always risk involved in such investment for any type of people. It's because nobody knows what will happen next in stock market, people starts to feel insecure about there investment and then stress starts to rule. They feel that it's a compulsion for them to be stressful. There's only one solution to it. It is to enjoy each trade you make and make every trade on the basis of all available information. Most of the information about the institution you are focusing is available in openly. Some are provided by people you know who are in higher position. The use of information provides you a base for making decision which is explain on rational grounds. When you have logic about the trade you do then you find that trade as a single activity, it's a one time activity and you don't have to think about it.

Normally we all have depressed as well as excited situations. Most of the successful people in stock market are always excited about the work. They do the job with certainty and forget the outcome. So stress for a stock trader is a choice. Next time when you trade, ask yourself,"if the price goes down should I be sad about it or see something different in the activity of the company?"