Banks and financial institutions disbursed 38.57 billion rupees more in share loans in the last 11 months, up 42.8 percent, while equity loans rose 14.2 percent year over year. Yet the Nepse index edged lower near 2767, indicating the market did not rise with loan growth. Factors include investor confidence being low, and many loans being used as margin outside the stock market. Liquidity remains ample and interest rates are falling, yet loan demand is weak. Market capitalization grew slightly by about 14 billion, while market breadth was negative. Overall credit growth is not translating into stock market gains.
High Share Loans But Weak Market Response
