MACROECONOMIC OUTLOOK

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2 MACROECONOMIC OUTLOOK During the review period, Nepal Rastra Bank (NRB) has auctioned 28 Days Treasury Bills amounting to NPR 5 billion and 91 Days Treasury Bills amounting to NPR 1.11 billion in a bid to curb excess liquidity prevailing in the Banks and Financial Institutions (BFI s). Chandra Singh Saud, former Chief Executive Officer of Nepal Insurance Company Limited has been appointed for the position of General Manager of Nepal Stock Exchange (NEPSE) - the sole secondary market of the country. Communist Party of Nepal-Unified Marxist Leninist (CPN-UML) and Maoist centre have agreed a tie up for provincial and federal poll contrived later this year and plan to unify as a single communist party following the polls. This development may usher in a new era of stability in the country, which has cycled through nine governments in a decade. The successful completion of third phase of local level election and consensus among political parties (including agitating Madhesh based parties) to conduct provincial and federal poll within constitutionally stipulated date is expected to drive capital spending and investors psychology robustly. Weighted average 91 days treasury bills rate on 06 September, 2017 stands at and weighted average interbank rate (daily) on 08 September, 2017 stands at which indicates that credit crunch that emerged in recent months is showing some signs of improvement. The Securities Board of Nepal (SEBON) is devising plan to make Permanent Account Number (PAN) card mandatory for investors in the stock market. This new rule will come into effect from FY 2018/19 and shall require investors to mandatorily have PAN card while investing in the secondary market. According to data from Tribhuvan International Airport (TIA), 1.87 million travellers passed through the airport s facilities in the first six months of 2017, an increase of 12.79% in comparison to the same period last year. Nepal Electriciry Authority (NEA) has terminated the contract of Dhalkebar substation with Central China Power Grid International Economic Trade and Co. Ltd. citing contractor s unnecessary demands to delay the project. This has sparked concerns over continuation of decade long load-shedding which has been put to end a year earlier. Government s revenue collection has recorded high growth each passing year. Nepal s tax-to-gdp ratio has reached the highest among South Asian countries and is at par with emerging market economies like South Korea. Government authorities believe that the ratio has increased substantially as informal economy has gradually entered the formal sector. Issuing a notification, Indian Government has waived GST on supply of services associated to transit cargo to Nepal and Bhutan (landlocked countries). After the introduction of GST by Indian government, services associated with transit cargo had become costlier as GST rule in India recognised and exempted GST only if the service procurer made payment in convertible foreign currency. After the notification, GST on supply of services associated to transit cargo to Nepal and Bhutan shall be waived even if the service procurer make payment in Indian currency.

3 TREND ANALYSIS Indices Bhadra End, 2074 Shrawan End, 2074 % Change NEPSE % Sensitive % Banking % Development Banks % Finance % Insurance % Hydropower % Hotels % Manufacturing % Others % Trading % Table 1: Comparison of indices for two months NEPSE Index witnessed a decline of points (i.e %) during the review period (i.e. Bhadra End, 2074 to Shrawan End, 2074) and closed at points. Sensitive Index which measures the performance of class A stocks also decreased by 6.45% in the review period and closed at points. Banking sector index decreased by 7.02% in Bhadra End, 2074 compared to Shrawan End, The Insurance Sector was the poor performer among the sectoral indices and witnessed highest decrement of 8.24% in the index. Only Trading sector was the clear winner during the review period and witnessed an increment of 8.01%. Other sector also showed slight improvement in its index with an increment of 0.16 % as compared to Shrawan End, Figure 1: Trend of NEPSE over one month period (i.e. 22/08/2017 to 14/09/2017) A Downward trend (Bearish trend) has been observed in NEPSE during the review period which can be attributed to increase in selling pressure due to liquidation of stocks held by investors to celebrate festivals in hand. The mandatory PAN requirement for investment in the market has driven various speculations and induced negative sentiments among the investors. Furthermore, the selling pressure in the market to subscribe right shares offered by BFIs has negatively affected the market. Listing of right and bonus shares of BFI s has increased supply of stocks in the market, thereby declining the price of stocks and ultimately the market. However, on the brighter side news regarding the implementation of online trading of shares in near future and reduction of interest rates on loans offered by BFIs in recent months is expected to positively stimulate the capital market.

4 RELATIVE STRENGTH INDEX ANALYSIS The Relative Strength Index (RSI) is a momentum indicator developed by renowned technical analyst Wells Wilder that compares the magnitude of recent gains and losses over a specified time period to measure speed and change of price movements of a security. It is primarily used as an attempt to identify overbought or oversold conditions in the trading of an asset. RSI line over 80 is considered as overbought and disposal of share is recommended and similarly if RSI is under 20 it is considered as oversold and buying of shares is recommended RSI is calculated as: RSI= 100-[100/ (1+RS)] Where, Figure 2: Relative Strength Index of NEPSE for the period 25/09/2016 to 14/09/2017 The current RSI stands at on Bhadra End, 2074 as indicated in figure 2 which indicates that the market is currently at neutral region but since the trend of the RSI is trending upwards, the market is heading for a bullish trend. Although RSI is an effective and widely used leading indicator in the trending market, it is not appropriate to take decision solely based on RSI. RSI mainly reflects the momentum of the market. One should be aware that the large surge and drop in the price of an asset will affect the RSI by creating false buy or sell signals. To reflect better position, RSI is generally confirmed along with other technical indicators.

5 MOVING AVERAGE ANALYSIS Moving Average lines are used to identify current trends and trend reversals as well as to identify support and resistance levels. Further, moving averages can be used to quickly identify whether security is moving in an upward trend or a downward trend from the direction of the moving average. 20 days MA and 50 days MA Analysis: Figure 3: 20 and 50 days moving averages of NEPSE for the period 26/09/2016 to 14/09/2017 Black line: NEPSE Index, Red line: 20 days moving average, Green Line: 50 day moving average If we look at the moving average chart in Figure 3, the NEPSE index line has crossed both 20 Days MA and 50 Days MA line from above on 13 August, 2017 when index was at points and on 30 August, 2017 when index was at 1, points respectively indicating downward trend. Moreover, the 20 Days MA line has also crossed the 50 Days MA line from above on 11 September, 2017 when NEPSE index was at 1, points indicating downward trend in the short run due to oversupply of shares, mandatory PAN requirement and nearing festive season. 50 days MA and 200 days MA analysis: Figure 4: 50 and 200 days moving averages of NEPSE for the period 26/09/2016 to 14/09/2017 Black line: NEPSE Index, Green line: 50 days moving average, Red Line: 200 days moving average If we look at the longer period MA chart in figure 4, the NEPSE index line has crossed both the 50 Days MA line and 200 Days MA line from above indicating a downward trend. However, at the end of the review period, the NEPSE index line is about to cross the 200 Days MA from below, which might indicate some positive correction in the market in the days to come. In addition, if we look back, the 50 Days MA crossed the 200 Days MA from below on 31 May, 2017 when NEPSE index was at 1, points indicating an upward trend in the long run. Till the end of the review period as well, the 50 Days MA line is still above the 200 Days MA line.

6 BOLLINGER BANDS ANALYSIS The Bollinger Bands is a technical indicator that consists of a moving average (21-days) along with two trading bands above (upper band) and below it (lower band). The bands are an indication of volatility, which are represented by calculating standard deviation of the index. The price of the stock is bracketed by an upper and lower band along with a 21-day simple moving average. Because standard deviation is a measure of volatility, when the markets become more volatile, the bands widen; during less volatile periods, the bands contract. Bollinger Bands are a highly popular technical analysis technique. Many traders believe the closer the prices move to the upper band, the more overbought the market, and the closer the prices move to the lower band, the more oversold the market. Figure 5: Bollinger bands for one period 25/09/2016 to 14/09/2017 As indicated in figure 4, the benchmark index is hovering around simple moving average band. The distance between the upper and lower bands tend to shrink compared to previous periods signifying moderate market volatility. Taking into factor the macroeconomic trend such as increase in government spending which has a positive impact of the CCD ratio of banks, the index has the potential for a bullish trend in the upcoming trading days taking into account the rise in supply of funds into the market. Similarly, the simple moving average (Black line) at the end of this review period is moving towards below the lower band which indicates that the shares are being sold rather than bought. If the simple moving average (Black line) crosses the lower band (Green Line) it indicates the shares in NEPSE are being oversold which is a good buy indicator for the investors trying to invest. However at the mid of September simple moving average (Black line) moving upward indicates market is heading towards bullish trend.

7 MOVING AVERAGE CONVERGENCE DIVERGENCE ANALYSIS The Moving Average Convergence Divergence (MACD) turns two trend-following indicators, moving averages, into a momentum oscillator by subtracting the longer moving average from the shorter moving average. As a result, the MACD offers the best of both worlds: trend following and momentum. The MACD fluctuates above and below the zero line as the moving averages converge, cross and diverge. Figure 6: MACD and signal line for the period 26/09/2016 to 14/09/2017 MACD Line=Black Line, Signal Line=Red Line Convergence occurs when the moving averages move towards each other. Divergence occurs when the moving averages move away from each other. The shorter moving average (12-day) is faster and responsible for most MACD movements. The longer moving average (26-day) is slower and less reactive to price changes in the underlying security. A bearish crossover occurs when the MACD turns down and crosses below the signal line and bullish crossover occurs when the MACD turns up and crosses above the signal line. In the figure 6, MACD line is slightly converging at the end of this review period indicating market can go in bullish trend in future. Previously, in the mid of August MACD line crossed signal line from above indicating a bearish trend which can be seen in the review period. However, MACD trending slight upward indicates market can go for bullish run. The decision for entry and exit should not rely on MACD alone as it is a lagging indicator and gives late signals just for confirmation of trend.

8 COMPARATIVE ANALYSIS Comparative Analysis of Five Commercial Banks on the basis of EPS, NWPS and NPL to Total Loan as on Bhadra End, 2074 S. No. Stock Ticker EPS NWPS NPL to Total Loan (%) 1 HBL GBIME NMB SBI SRBL Comparative Analysis of Five Life Insurance Companies on the basis of EPS, NWPS and NPL to Total Loan as on Bhadra End, 2074 S. No. Stock Ticker EPS NWPS NPL to Total Loan (%) 1 PLIC NLICL NLIC LICN ALICL Comparative Analysis of Five Hydropower Companies on the basis of EPS, NWPS and NPL to Total Loan as on Bhadra End, 2074 S.No. Stock Ticker EPS NWPS NPL to Total Loan (%) 1 BPCL CHCL SHPC BARUN API Comparative Analysis of Five Mutual Funds on the basis of Fund Size, Net Assets Value (NAV) per unit and Market Value as on Bhadra End, 2074 S.No. Stock Ticker EPS (In Millions) NWPS Market Value 1 LEMF NEF GIMES NIBSF NMBHF

9 COMPANY ANALYSIS-CHILIME HYDROPOWER COMPANY LIMITED BASIC INFORMATION Chilime Hydropower Company Limited (Stock Ticker: CHCL) was established in 1995 with the objective of generating hydroelectricity in Nepal through optimal utilization of resources available within the country. CHCL owns and operates 22.1 MW Chilime Hydropower Plant (Run of the River Project) which started its commercial generation from 25 th of August, The plant is located at the bank of Bhotekoshi River in Rasuwa district, 133 KM north of Kathmandu. With the objective of further development of hydropower sector in Nepal, CHCL has promoted few other companies, whose detail is tabulated below: S.N. Name of the Company 1 Rasuwagadhi Hydropower Company Limited 2 Madhya Bhotekoshi Jalavidhyut Company Limited 3 Sanjen Jalavidhyut Company Limited 4 Chilime Engineering and Services Company Ltd. Total % of Ownership Project Name 33% Rasuwagadhi Hydroelectric Project 38% Middle Bhotekoshi Hydroelectric Project 38% Sanjen Hydroelectric Project Sanjen Upper Hydroelectric Project 100% Chilime Engineering and Services Company Ltd. Generation Capacity 111 MW 102 MW 42.5 MW 14.8 MW NA 270 MW INDUSTRY OVERVIEW Currently, Nepal Stock Exchange Limited (NEPSE) consists of 16 hydropower companies. The hydropower sector has immense potential which can reap a lot of benefit to the country in the present global scenario where oil prices are going high and is limited. Optimum utilization of the available water resources can boost Nepalese economy. Furthermore, hydropower sector constitutes ~3.97% of the total market capitalization as on 30 August, (Total Market cap = 1,742,346, and Hydropower sector = 69,187,555.21) SHAREHOLDING STRUCTURE The detailed shareholding structure of CHCL is as follows: S. No. Shareholder Holding 1 Nepal Electricity Authority (NEA) Employees of NEA and CHCL General Public Project-Affected Local People Total Table 1.1 showing the Shareholder Structure

10 MANAGEMENT AND GOVERNANCE Mr. Kul Man Ghising, Managing Director of NEA has been associated as Chairman of the Company. In the past, he served as Managing Director of CHCL and Project Director of Rahugat Hydropower Project. He was the Division Chief of Rural Electrification Distribution System Reinforcement Project at NEA. Mr. Ghising has more than 22 years of professional experience in power generation, transmission, and distribution, trading business including contract management and dispute settlement in hydropower companies. Mr. Ghising has an Executive MBA degree from ACE Institute of Management, Kathmandu, Masters in Power System Engineering from Institute of Engineering, Kathmandu and B.Sc. in Engineering (Electrical) from Regional Institute of Technology, Jamshedpur, India. Mr. Ghising is popularly termed as Light of Nepal for his relentless effort in eradicating decade long load shedding in Nepal. Chief Executive Officer (CEO): Er. Damodar Bhakta Shrestha Company Secretary: Mr. Narayan Prasad Acharya The BoD comprises of the following: S.No. Name Designation 1. Mr. Kul Man Ghising Chairperson 2. Mr. Lekhnath Koirala Member 3. Ms. Shanti Laxmi Shakya Member 4. Mr. Gopal Babu Bhattarai Member 5. Mr. Hararaj Neupane Member 6. Mr. Tulasi Ram Dhakal Member 7. Mr. Ram Prasad Rimal Member 8. Mr. ParsadoTamang Member 9. Mr. Bhim Prasad Timilsina Member FINANCIAL SUMMARY Figures in NPR 000 except NWPS, EPS, ROE & ROA Important Figures FY 2069/70 FY 2070/71 FY 2071/72 FY 2072/73 FY Q1 2073/74* FY Q2 2073/74* FY Q3 2073/74* FY Q4 2073/74* Paid Up Capital 1,747,200 2,271,360 2,725,632 3,134,477 3,134,477 3,447,924 3,447,924 3,447,924 Reserve and Surplus 4,223,138 4,463,934 4,522,486 4,595,988 4,639,097 4,528,326 4,668,542 4,935,406 Total Assets 6,077, ,363,997 8,000,780 7,915,051 8,534,434 8,455, Net Interest Income 254, , , ,850 2,371 16,991 27,325 39,350 Net Profit 965, , , , , , , ,314 1 Net Worth Per Share (NPR.) Earnings Per Share (NPR.) (Annualized) ROE (Annualized) 17.16% 14.79% 12.21% 12.58% 12.24% 12.21% 11.97% 12.20% ROA (Annualized) 17.16% 14.70% 12.06% 12.37% 12.13% 12.04% 11.79% 12.05% Table 1.2: Financial summary of CHCL; *indicating unaudited financial details

11 Paid-up Capital and Reserves & Surplus: The paid-up capital of CHCL has increased by 10% in second quarter of FY 2073/74 compared to FY 2072/73 due to distribution of 10% bonus shares by annual general meeting of CHCL held on 30 Jan, This explains the resultant decrease in reserves and surplus of CHCL by 2% in second quarter compared to first quarter of FY 2073/74. Net Profit and income from electricity: The net profit of CHCL has increased by 38.15% from third quarter to fourth quarter of FY 2073/74.The net profit of CHCL has shown a mild uprising trend in the FY 2073/74 with the increase in its figure by 2.5% compared to FY 2072/73. Earnings per share: The earnings per share of CHCL have decreased by 6.8% in the FY 2073/74 compared to FY 2072/73. This decrease is due to the increase in paid-up capital of CHCL by 10% after the distribution of bonus shares for FY 2072/73. POLICY ANALYSIS: Hydropower projects in Nepal are governed by Hydropower Development Policy, 2001, Electricity Act, 2049, Electricity Rules, 2050 and Electricity Tariff Fixation Rules, Private sectors are allowed to develop hydropower projects on a competitive basis with Build-Own- Operate-Transfer (BOOT) model in Nepal after the promulgation of Hydropower Development Policy in The BOOT administered project requires contractors to be responsible for partial or complete design and financing, completely responsible for construction (build element), own, operation (operate) and maintenance activities for 35 years. After 35 years, ownership of the project is automatically transferred to the government. This shall remain concern for investors vying to invest in hydropower sectors. The government has made various provisions to encourage investment in the hydropower sector and has provided corporate tax exemption for 10 years and 50% exemption for the next 5 years. Furthermore, the Value Added Tax levied on generation has been exempted and 1% import tax is charged on equipment and materials. In addition to this, while calculating tax liability, business losses incurred due to construction of powerhouse, generation and transmission of electricity can be carried forward for 12 years. SWOT Analysis: STRENGTHS CHCL is financially strong (As evident from the unaudited financial for FY 2016/17 wherein Reserve and Surplus is 1.43 times greater than the Paid Up share capital). CHCL has easy access to complete engineering services with the help of its wholly owned subsidiary company, Chilime Engineering and Services Company Limited. The company holds a history of having complete experience in engineering design and management, site supervision including operation and maintenance. The company has strong collaboration with the government of Nepal as NEA (Government Undertaking) holds 51% stake in CHCL.

12 CHCL has been dominating hydropower sector in NEPSE with 38.37% market capitalization as on 30 Aug, Strong team with in-house experienced technical experts in Hydropower, Civil and Environmental Engineering. WEAKNESSES Procedures for procurement of goods and services are very much time consuming. Lacks investment in terms of growth. OPPORTUNITIES The initiation of cross country power exchange program and Power Trade Agreement (PTA) with India can be considered as an opportunity whereby excess electricity produced within the country can be exported to other countries. Nepal due to its swift flowing rivers has huge potential in hydropower generation. The Global Arc towards renewable energy evident from the ratification of Paris Climate Change Agreement on November 04, 2016 has enlarged the scope of hydropower sector globally. THREATS Natural calamities like flood, earthquake and other geological processes pose threat of delay and damage to the project. Locals of project affected areas can act as threat to the project through unnecessary and unwarranted demands. Political instability in the country. Unavailability of adequate technical manpower in the market. Unlike Banks & Financial Institutions and Insurance sector; hydropower sector in Nepal is not regulated and hence corporate governance within hydropower companies may remain a question. Financing of projects is expensive due to high interest costs. Despite growing interest rate, participation of Banks and Financial Institutions has not been encouraging as investment in Hydropower is technically sophisticated and risky as compared to other sectors. INDUSTRY RISK: The company operates in a sector and region with mild competition. A prospective investor considering investment in CHCL should take into account market risk, technological risk, default risk political risk, regulatory risk, natural calamities risk, cost overrun risk and revenue constraint risk. Note: The capital gain of hydropower seems low compared to other sector but this industry has a proven record for steady and consistent income.

13 Upcoming Issues: RHCL and SANJEN has applied SEBON to offer IPO of 16,421,040 shares and 8,760,000 shares respectively for the employees of promoter shareholding company, employees having membership of Employee Provident Fund and employees of lending institution. Recent Development: CHCL has been granted the study license of two hydropower projects (Budigandaki Project of 420MW and Seti River III) by Ministry of Energy.

14 MANAGEMENT ARTICLE -Sukriti Khanal, Equity Research Analyst Traditionally speaking, the need for a physical location to commence a business was very important. But with the advancement in technology and the communication system, location is no longer an issue. Business nowadays is not confined to a physical location. Thanks to e-commerce, people can purchase and sell goods in an electronic way without actually having to meet up in a physical location. A very common example of ecommerce is online business (Amazon, Ebay, Flipkart, nepbay, etc), E- procurement and E-trading. E-Trading E-trading also known as Electronic Trading is the process of trading securities, foreign exchange and financial derivatives electronically. It prepares a virtual platform where buyers and sellers indulge in trading shares with the help of electronic platform. Some popular examples of e-trading include NASDAQ, NYSE Acra, and Globex. Nepalese trading market: In the past, in order to indulge in trading, floor trading and phone trading were used in the maximum extent. Floor trading was applicable in the trading of shares where buyers and sellers would meet in a physical location and negotiate the securities price. Furthermore, in 2007/08, NEPSE adopted a partial automation system replacing the open outcry system under which brokers shout prices and offers to each other. This has improved the trading in different ways. Currently, NEPSE has been adopting semi-automated trading system where buy and sell orders can be placed through broker with the help of telephone but can view the order book in the internet as well. However, the phone trading has proved to be difficult to verify the authenticity of the investor making trading a risky approach which is expected to be mitigated once the fully automated trading system is introduced. This is supposed to be possible with the provision in place made by NEPSE once the fully automated trading system is commenced. Thus, NEPSE is planning to test the automated online trading system from mid of November, 2017 on a trial run basis and launch fully in a regular basis after incorporating certain recommendations and feedbacks. As participants of the market we can expect this to be a great achievement in the Nepalese stock market. Provisions in the market: The fully automated system will have the provision of placing buy and sell orders online without having to visit the stock broker office freeing them from the need to depend on the stock brokers along with the payment clearing and settlement to be conducted electronically. With regards to the procedure of the e-trading, according to SEBON officials, traders will be provided the username and password of the trading system from their brokers. Interested investors can log in and post their purchase or sale orders for shares of companies listed on the Nepal Stock Exchange (NEPSE).

15 Investors have to provide their bank account details to their stockbroker. According to SEBON, investors need to have a bank account and should have fulfilled their Know Your Customer (KYC) requirement which will help in proving the authenticity of the investors. According to NEPSE officials, an automated debit and credit system of cash from bank account and stocks from the dematerialized account of investors will be in place once the orders are matched and trading is executed through the online system. The automated trading system is likely to increase the number of shares traded because trading is likely to be faster, easier, convenient and efficient which is likely to increase the growth potential in the Nepalese stock market as well. Advantages of E-trading: It reduces transactions costs. The availability of more buyers and sellers increases the liquidity making the stock market more efficient. It removes the barriers within the industry and increase the competition in the market. Investors do not have to go to a broker office in order to conduct exchange of securities. The increased liquidity and competition will tighten the bid-ask spread making stocks cheaper for the investors. Larger market base is penetrated increasing the number of investors. The overheads of maintaining a physical retail outlet are reduced. Staff costs will be reduced standard enquiries and sales can be handled automatically via software, leaving staff with time to handle the difficult or higher added-value transactions. Disadvantages of E-trading: Electronic trading is overcoming the hindrances posed by human trading but initiating certain problems in it as well. Nepalese from various parts do not have accessibility to internet. In order to benefit from e-trading, investors should have the knowledge about the internet. However, many investors lack knowledge about internet. People are reluctant to change and might find it hard to believe in the authenticity of E- trading. The problem of slow internet connection and frequent system down is likely to pose a threat for investors. The account provided to traders is likely to be hacked in case of poor defense in a network security. Conclusion: Electronic trading will make it easier to complete, monitor, clear, and settle the transactions. Traders in Nepal are likely to find the E-trading service to be easy, convenient and hassle free which is why this is likely to have positive impact on NEPSE trading. Furthermore, provision of NEPSE to increase the transaction limit for brokers is likely to increase the client base as well. But the full-fledged implementation of e-trading and its impact in the market is yet to be seen. However, it is expected to bring out positive sentiments in the investors the reflection of which is expected to be seen in the NEPSE Index as well.

16 NEPSE FORECAST Analyzing the past trends of NEPSE, it can be concluded that the market is slightly showcasing bearish pressure as compared to the bulls. Listing of right & bonus shares and the arrival of festive season during the review period has increased selling pressure in the market and can be considered as reason for the bearish trend in market. However, successful completion of the third phase of the local level election, consensus among political parties (including agitating Madhesh based parties) to conduct provincial and federal poll on Mangshir 10 & Mangshir 21 and news regarding the unification of major political parties have shown some signs of political stability and has kindled hope among the investors whose effect is yet to be seen in the days to come. The MACD line as shown in Figure 6 indicates that market is heading towards bullish trend. Similarly, the RSI as shown in Figure 2 which stands at on Bhadra End, 2074 indicates that the market is currently at neutral region but since the trend of the RSI is trending upwards, the market is heading for a bullish trend. From Figure 3 above, the 20 Days MA line has also crossed the 50 Days MA line from above on 11th September, 2017 when NEPSE index was at 1, points indicating downward trend in the short run due to oversupply of shares, mandatory PAN requirement and nearing festive season. From Figure 4 above, at the end of the review period, NEPSE index line is about to cross the 200 Days MA from below, which indicates some positive correction in the market in days to come. The news related to political and other economic development should be carefully assessed by an investor as in the past trends, it is seen that external news affects the market more than fundamentals of companies and sectors. EVENTS TO WATCH Financial Reports of listed companies. Deposit and Lending rates of BFIs. Government Spending. Upcoming Legislative Election on 26 November 2017 and 7 December REFERENCES *Disclaimer: Information in this presentation, including forecasted financial information, should not be considered as advice or a recommendation to investors or potential investors in relation to holding, purchasing or selling securities or other financial products or instruments and does not take into account your particular investment objectives, financial situation or needs. Before acting on any information you should consider the appropriateness of the information having regard to these matters, any relevant offer document and in particular, you should seek independent financial advice. All securities and financial product or instrument transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments and, in international transactions, currency risk.

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