Why Hydropower Stocks on NEPSE Could Be Poised for a Historic Rally
Why Hydropower Stocks on NEPSE Could Be Poised for a Historic Rally August 31, 2020 (2077-5-15 BS) Are you eyeing hydropower shares on the Nepal Stock Exchange (NEPSE)? Do you sense a “Hydro Bull” market brewing in the coming days? Many investors believe hydropower stocks—currently trading at what seems like their lowest ebb—could soon surge to all-time highs. Here’s an insightful breakdown of why hydropower might be the next big opportunity on NEPSE, backed by economic, policy, and market dynamics as of mid-2020. 1. Single-Digit Interest Rates Boost Profitability Banks and financial institutions are offering loans to hydropower projects at single-digit interest rates—a sharp decline from previous years. For instance, rates that once hovered above 12% have dipped below 10%, driven by excess liquidity in the banking system. Lower borrowing costs directly enhance project profitability, making hydropower companies more attractive on NEPSE. With reduced interest expenses, cash flows improv...