Nepal share market to close from Thursday until further notice - Finance

Nepal share market to close from Thursday until further notice

Kathmandu – financial uncertainty, global downfall, and impact of the global pandemic of coronavirus, Nepal’s stock market opened for two days during the lockdown and closed again until further notice due to minus trading.

After a break of around 50 days, the market opened Tuesday. However, the Securities Board of Nepal, the share market regulator, directed to stop its operation immediately, according to the board’s chairperson Bhishma Raj Dhungana.

Estimating that the market rates can go too low due to the ongoing lowdown, a provision was made to impose a circuit breaker whenever the rates go up or down by two percent.

In the past two days, the market witnessed negative circuit breakers; consequently, the big investors demanded that the government stop its functioning again.

The country’s share market, Nepal Stock Exchange (Nepse), is likely to close its operation indefinitely from Thursday again.

Even before the COVID-19 arrival, Nepal’s share market was trading for loss for some time and could not recover for a long period of time. Manipulation of pricing and holding major shares by nonproductive sectors are the main reason for the loss.