Finance Minister Says Stock Market Decline Driven by Psychological Fear and Legal Action
The Finance Minister told Parliament that the recent stock market decline is mainly due to psychological pressure among investors and ongoing legal actions in the capital market and insurance sectors, stressing that the government is focused on long-term stability.
The Finance Minister has clarified the recent fluctuations in the stock market during a parliamentary session while responding to discussions on the Economic Act 2081.
He said the current decline is temporary and largely driven by investor psychology and ongoing investigations into irregularities in the capital market and insurance sector.
According to him, cases involving claims of more than Rs. 10 billion have been filed recently, and these developments have created uncertainty in the market.
The minister noted that as investigations and legal actions proceed, some investors may feel anxiety or fear of being implicated, which has influenced market behavior.
He emphasized that the government is not focused on short-term market movements. “We do not monitor how the stock market moves every hour,” he said, adding that the government’s priority is long-term market health and stability.
He also urged investors not to follow rumors and expressed confidence that structural reforms in the capital market are ongoing.