Why is Nepal's stock market unstable?

The stock market in Nepal, also known as the Nepal Stock Exchange (NEPSE), appears to be unstable due to various reasons. A thorough study of NEPSE trading, the Nepal stock market, and related topics reveals the following primary factors:

1. Limited number of investors: The number of investors in Nepal's stock market is limited. This means that the activities of a few large investors can significantly impact the market.

2. Economic and technical factors: Changes in economic reports, interest rates, and government policies can also affect the market. These changes can decrease or increase investors' confidence.

3. Company performances: The financial performance of various companies and their dividend distribution policies also affect share prices. If a company is not performing well, its share price may decline.

4. External economic conditions: International economic conditions can also impact Nepal's stock market. Events in the global economy can influence the confidence of investors in the Nepali market.

5. Lack of experienced investors: Many new and inexperienced investors in Nepal make decisions without proper market analysis. Such decisions can lead to market instability.

Due to these various factors, Nepal's stock market is unstable. Investors need to pay attention to these issues and make decisions carefully before investing in the market.