Give tools to both bulls and bears

The rise in margin debt is a signal that investors’ risk appetite has gone up.

It is tricky being a budding capital market. It has its share of advantages and disadvantages. Growing pains are plenty. You learn by doing and by falling over, as Richard Branson once said. At the same time, those willing to learn from others’ mistakes will have plenty of opportunities to do so. Markets that are mature today at some point in time were taking baby steps themselves, going through the pain of trial and error. Their adverse experiences, and how they overcame them, can save the future generation from making the same mistakes. Nepal’s stock market is young. The Nepal Stock Exchange (NEPSE) opened for trading in January 1994, and has a long way to go before it joins the big leagues.