Nepse extends trading hours

  • Move expected to facilitate investors in making rational decisions

Kathmandu, July 15

Nepal Stock Exchange (Nepse) has extended the trading hours of the country’s only secondary market starting with the new fiscal year 2016-17.

Beginning Sunday, the first working day of the new fiscal year, Nepse will be open for trading from 11:00am to 3:00pm, according to a media release issued here today. Earlier, the stock market used to be open for trading only between noon and 3:00pm.

“Owing to the increased trading volume in the country’s only share market following CDSC and Clearing Ltd becoming fully operational and the demand of investors, the trading hours at Nepse have been increased,” the release says, adding the share market operator had also held consultations with concerned stakeholders before taking the decision.

Nepse believes the additional time in share trading will facilitate traders and stock brokers in carrying out entries of the orders.

“By extending the trading hours, investors will now have more time to make rational decisions,” opined Shreejesh Ghimire, CEO of NMB Capital, adding the move will likely see more scrips of the listed companies changing hands.

The share market has seen an upsurge in transactions after fully automated share trading was launched earlier this year.

After witnessing various hiccups along the way, CDSC had carried out first electronic transfer of dematerialised shares on April 15, 2014. Then on August 17, Nepse made digital transactions of shares mandatory for commercial banks in a move towards modernisation of the secondary market.

Nepse hit another milestone on December 27, when it started displaying the market depth of listed companies on its website to facilitate common investors of the capital market. Earlier, only the broker firms benefited from this facility.

CDSC finally managed to launch fully automated share trading, securities ownership transfer and clearance services from January 17. Once the trading of demat shares began, Nepse also fully enforced the provision of T+3, under which all payments have to be settled within three days of trading.

All these factors played a major role in increasing transactions of the country’s only secondary market, with daily turnover hitting an all-time high of Rs 2.2 billion on June 15. As the daily transaction amount has hovered around Rs one billion in recent days, SEBON even formed a committee on Thursday to conduct investigations into big investments in the capital market on suspicion of illicit flow of capital.