Kathmandu. There has been a lot of discussion in the market circles about the unusual activity in the reinsurance sector.
Market sources claim that some big investors are quietly collecting shares, especially when negative rumors about Himalayan Reinsurance (Himalayan Re) are spreading. According to market analysts, if Himalayan Reel does not get new business immediately, who will get it? This question has been raised. They argue that the direct answer to this is Nepal Reinsurance Company (Nepal Re-Insurance).
However, it is not a coincidence that the impact of such a potential gain is still not clearly visible in the price of Nepal Rico, and on the other hand, the negative publicity in the Himalayan Reem is intensified.
‘Sell the weak, pick up the strong’ strategy?
According to experienced investors in the stock market, in the current environment, there are indications that there is a game of selling Himalayan Ree by intimidating the general public and collecting a large amount of shares at the same time. An experienced investor said, “The psychological pressure seems to be created in the market more than the actual facts. When people start selling out of fear, that’s when large groups come in. ’
Why is Nepal RICO discussed?
According to market sources, if the expansion of new business in Himalayan Reem slows in the next few months, there is a strong possibility that Nepal Relay will take direct advantage of it. For this reason, some analysts have begun to see the reinsurance sector at the center of the future.
Here are the analysts’ arguments
}
- The reinsurance business has limited competition in Nepal.
- If the business is relocated, it can have a direct impact on income and profit.
A large part of it is still centered around the Himalayan Ri and the Nepal River.TAG_OPEN_li_31
‘The market is run by facts, not by noise’
Market experts have urged investors not to make decisions on the basis of rumors. According to them, while the current volatility in the reinsurance sector has created short-term fears, the prospects of the sector are still strong in the long term. At the same time, there are calls for the regulatory body to increase its vigilance against the unconfirmed information and systematic negative propaganda being spread in the market.
