Securities Board of Nepal (SEBON) has instructed the only stock exchange of the country, NEPSE to stop the trading activities from today i.e. 1st of Jestha (14th May) till 5th Jestha, 2077 (18th May, 2020)
Due to the sudden rise in the number of pandemic COVID-19 cases all over the country, the government has tightened the security to safeguard general public from this novel disease. Citing the same, SEBON has communicated NEPSE to suspend the trading activities for now till the end of upcoming lockdown period announced by the government.
Earlier, SEBON has opened the trading amid the ongoing lockdown after the interval of 50 days from 12th May, 2020 i.e. last Tuesday onwards. However, on the both trading days, NEPSE had plunged for prescribed circuit level of 2% to close at 1201.57 levels. In total of Rs 1.44 crore share transaction executed in two trading days, if we exclude the bulk matching transaction of CIT, GBIMEP and JBBLP scrips of 12th May, 2020 from the total.
The total market capitalization dropped from Rs 1600 billion (before lockdown period) to Rs 1536 billion (13th May, 20020 closing). This is the loss of Rs 63 billion in two trading days with mere Rs 1.44 crore of worth transaction.
Many investors including the President of Nepal Investors Forum was openly agitating the government decision to open the NEPSE at this time when not everyone can easily benefit from trading activities due to pandemic Covid - 19. This decision of SEBON must have brought some respite for most of them to not go through the mental trauma of market plunge day after day. They are hugely anticipating to get some major relief from the government in form of surplus liquidity, etc. to revive this already sluggish sector.