Attention: NEPSE is Wrong About NIBPO's 8.33% Loss; Stock Opens Without Dividend Adjustment

Wed, Jan 6, 2021 12:46 PM on Stock Market, Latest,

Yesterday (January 05) was the last day to grab the 18.5% dividend of Nepal Investment Bank Limited (NIB). The bank (NIB) has proposed an 18.5% dividend for the fiscal year 2076/77: 5.5% cash dividend and a 13% bonus shares from the paid-up capital.

The ordinary shares of NIB closed at Rs. 540 yesterday. After the adjustment of bonus shares, the stock opened at Rs. 478 today. However, it seems that NEPSE's system did not adjust the dividend for the company's promoter shares.

The promoter shares of the company (Ticker NIBPO) closed at Rs. 468. After adjustment of dividend, the stock should have opened at Rs. 414. However, NEPSE's system is still considering Rs. 468 as the opening price of NIBPO for today. As of writing, NIBPO has an LTP of Rs. 429.

Since the system considers Rs. 468 as the open price, nepalstock.com shows a loss of 8.33% for NIBPO at the moment. With this, NIBPO is at the top of today's top losers. However, if we consider the actual adjusted price of Rs. 414, NIBPO has rather gained 3.6%.

This blunder from NEPSE has disillusioned investors. It can be seen that the data misrepresentation led some to buy a huge quantity of shares. This group of investors probably wanted to enter positions perceiving an entering opportunity because of the huge fall. Meanwhile, those who sold got a profit they probably wouldn't have deserved if the data wasn't misrepresented.