Submit your Article

Markets, by their nature, like certainty, guided as they are by the projections and probabilities based on historical data and events. Future results are estimated based on past ones and changing socio-economic realities. Their performance and the socio-economic environmental factors are monitored and adjusted in their projected year-end results on regular basis. This helps smoothen the effects of uncertainty to a large extent. Projected positive or negative results are reflected in stock charts through the scrip’s price movement.

But whenever there is a man-made or natural calamity, it creates greater uncertainty, which is not factored in future estimates. Markets are suddenly coerced into uncharted territories and experience a rude awakening. The surprise quickly turns into fear. The fear of the unknown. Immediate reaction is “fight or flight”—some will hold their ground and try to weather out the storm while others will give up and escape.

In the markets, the flight response is seen when people start to push the sell button. As more people go into flight response, panic sets in. Panic leads to further panic and the result is a bloodbath on the trading floor.

In December 2019, Chinese authorities identified a new Sars-like virus emerging and affecting people in the city of Wuhan in Hubei province. As this new virus, now named COVID-19, started to rapidly spread in the city, the authorities enforced complete lockdown of the affected area to slow the spread of the virus. The global market ignored the situation as a one-off that would soon be contained. The last trading day of 2019 ended on a positive note for major global markets including the stock exchanges of Shanghai and Hong Kong.

Year 2020 brought in more news of virus spread, deaths and quarantines. By mid-February, the virus had spread to South Korea, Japan and Iran. Now, the effect was seen in the South Korean and Japanese equity markets as they started to plunge. On February 27, all major US indices—the Dow Jones, S&P and the NASDAQ—went into a deep correction mode. The virus continued to move across the borders.

On March 11, the World Health Organization declared COVID-19 outbreak to be a pandemic. The announcement shocked all the major equity markets. Markets from South Korea to Indonesia to India to United States hit multiple circuit breakers as the fear took over. Even the multiple circuits were unable to stop the plunge in stock values, leading to the possibility of a global recession.

In Nepal, the secondary market had just had a bullish run when COVID-19 happened. The month of February saw a big bull run. It was further fuelled as the projected returns from the secondary market looked more attractive than the returns from other alternative investment avenues. Steep rise in the index from 1,100-ish to 1,600+ (a gain of 500 points) within a span of three months was begging for a correction. This correction was set in motion on the very first trading day of March.

From a technical perspective, the correction was expected to end around 1,400ish, which would have been 50 percent retracement from 1,100-ish. The market even respected the support level of 1,400-ish on March 5. But the growing panic in global markets also spread into the hearts and minds of Nepali investors and traders. This was immediately reflected in the multiple circuit breakers on March 10 and continued decline in the index. The confidence level of investors and traders has hit a low and this is reflected in the declining volume of trading.          

NIBL extension counter at Duwakot

Nepal Investment Bank Limited has expanded its operations in Bagmati Province with the establishment of an additional extension counter at Duwakot, Changunarayan Municipality. The new extension counter in Ward No. 3 Duwakot is surrounded by Bhaktapur Municipality to south and Madhyapur Thimi Municipality to the west. Located around 20 km from the center of Kathmandu, Duwakot will run as a full-fledged extension counter to cater to the local demand.

It is NIBL’s 17^th extension counter, started with the intent of aiding financial accessibility of its customers and widening financial literacy. NIBL has been catering to its customers from 82 branches, 124 ATMs, 17 extension counters, 10 revenue collection counters and 56 branchless banking counters.

OPPO launches F15 in Nepal

OPPO has come out with its latest handset OPPO F15 through its first ever online launch event in Nepal. Featuring a 48MP Ultra-Wide Angle Macro Quadcam and super sleek design, OPPO F15 offers a refreshing professional photography experience in the palm of your hands.

F Series is designed to help the young generation chase better visual expression and strive for quality, trendiness and a better life, and has won great customer love. The launch of OPPO F15 marks a new era for the series, following its continuous technological advancements based on market needs.

Priced at Rs 39,990, OPPO F15 will go on sale from Marc 23 in two stunning colors: Lightning Black and Unicorn White.

Bottlers Nepal Limited—the authorized bottlers of the Coca-Cola Company—has started Shopkeeper Training and Resources “STAR” Program that aims to economically empower five million women across the value chain by 2020. The program aims to provide Nepali women retailers with the skills, techniques and tools required to succeed in the dynamic retail setup of Nepal, focusing on four key areas: shop management, stock management, customer management, and finance management. A joint Bottlers Nepal’s Public Affairs Communication and Sustainability (PACS) team and the sales team has reached 15 cities and several smaller towns in Nepal to train over 5,000 
women retailers.

THE MENU
Chef’s Special:
-    Pork Thenthuk 
-    Jhol momo 
-    Chicken Fan Baifan
Opening hours:
10:00 am-10:00 pm
Location:
Baluwatar
Cards:
Accepted
Meal for 2:
Rs 1,200
Reservations:
9851228014

One of the largest selections of beer available in Nepal,” the Ventures Café boasts on its Facebook page. A tall claim, you’d probably want to test. Located at Baluwatar (near the main gate of the Prime Minister’s official residence), the Ventures Café is a restaurant that serves a fusion of Oriental and Nepali cuisines and also provides a comfortable ambience for entrepreneurs to co-work and chill. 
With snacks starting at Rs 100 and main courses not exceeding Rs 500, Ventures has to be one of the most affordable restaurants around for food and ambience. Even the drink (alcoholic, non-alcoholic, and coffee) prices give fierce competition to other restaurants in the area. Perhaps why it has thrived all these years without much fanfare. A steady customer base, we suspect, is its secret sauce. 

Nepal’s economy has been battered by the novel coronavirus. Hotel occupancy is under 15 percent in this major tourist season, supply chains have been affected, all major construction contracts with Chinese contractors have been delayed. The government has also cancelled on-arrival visas for eight corona-hit countries and people are scared to go to restaurants, department stores and multiplexes. 

The global progression of coronavirus is still uncertain even as the fear that it could tip the global economy into recession rises. Against this backdrop, Nepal has done little to sustain its industries, businesses and to retain jobs.

Currently, over Rs 200 billion remains unspent in government treasury. But just a few days ago, the government got $29 million in grant from the World Bank Group to cope with coronavirus. This support will be spent to strengthen health services and primary health care, bolster disease monitoring and reporting, train frontline health workers, encourage community engagement to maintain public trust, and improve access to treatment for poorest patients. The International Finance Corporation (IFC), the World Bank Group’s private sector arm, says it is ready to support the private sector’s continued operation and job-retention. Another multilateral development partner, Asian Development Bank, also pledged sufficient financing for the recovery of private sector.

But the government has neither asked for subsidized credit with development partners nor has it announced any stimulus package for the private sector.

Finance Minister Yubaraj Khatiwada says the first priority is to smoothen supply chains, and control black-marketing and other ill-practices in the market. “In the next step, the government will address the severely hit sectors after studying the magnitude of their loss,” the finance minister says. “The government will definitely rescue any vital sector from a total collapse.” But he did not elaborate how the government was going to support the private sector.

The hospitality and airlines sectors have asked the government for loan-restructuring with add-on interest method (combining the principal amount borrowed and interest for the certain period), rescheduling loan repayment for at least for a year.

Domestic airlines operators are already witnessing sharp decline in the number of foreign and domestic passengers. Yograj Sharma Kadel, spokesperson of the Airlines Operators Association of Nepal (AOAN), says booking cancellations and decline in numbers of passengers have resulted in almost Rs 4 billion in losses to the domestic airlines business in past two months.   

Nepal Rastra Bank (NRB) says it is flexible on one-time loan rescheduling and restructuring for corona-hit businesses. This provision is also mentioned in the bank’s half-yearly review of the monetary policy. Gunakar Bhatta, NRB Executive Director, says the central bank will also provide concessional finance worth Rs 22 billion to severely affected sectors from the bank’s refinancing window, albeit it will take another month for these provisios to come into effect.