Securities Board of Nepal (SEBON) has instructed the only stock exchange of Nepal, NEPSE, to resume the regular trading of securities from tomorrow i.e. from 15th Asad, 2077 onwards.
Last time, the market was opened at normal condition on 9th Chaitra, 2076. But due to unprecedented time and lockdown situation, the trading was temporarily halt first till 17th Chaitra, 2076, and then till 25th Chaitra and later till 3rd Baisakh 2077 and again till 15th, 25th and 29th Baisakh, 2077. After the 50 days of the trading suspension, the market was re-opened on 30th and 31st Baisakh, on which the NEPSE has put several conditions on its functionality.
Amid the increasing Covid 19 cases and tightening of security, the market was able to open for only two days to close again till 5th Jestha, 2077 and later till 20th and then 32nd Jestha, 2077.
It was on the 84th day of lockdown period, the government had announced to ease the lockdown, citing to revive the economic activities from 1st Asar, 2077 onwards. Even though the banks and financial institutions, insurance companies and private vehicles were made open, NEPSE trading was continued to kept on halt first till 4th of Asar and then on its 11th such notice of NEPSE, it had mentioned that the market will remain close until any further notice on this matter. It is only today, after so long gap, SEBON has given green signal to resume its operations to NEPSE, from tomorrow.
Stock market is considered to be the mirror of an economy and has always taken as a liquid market by its participants. However, this long hiatus has raised questions in the credibility in the perception of its liquidity.
Earlier, NEPSE was last traded at 1201.57 index on 31st Baisakh, 2077 with total market capitalization of Rs 15.36 kharba.