Share market likely to open from May 24
Instead of tomorrow, the share market is going to start trading from May24.
The market has been closed since April 26 after the devastating 7.8-magnitude earthquake of April 25. And it had initially planned to start trading from tomorrow. But the market lost confidence after another earthquake of 6.9-magnitude on May 12. The market is closed – for the first time in its history – since April 26.
However, Nepal Stock Exchange (Nepse) is yet to inform its regulator, Securities Board of Nepal (Sebon), according to general manager of Nepse Sitaram Thapaliya.
The Nepse has not officially notified the public, but the marker cannot open tomorrow, he said, adding that it would not be possible to resume trading from Sunday according to earlier plan due to Registrar to Shares, brokerage companies, Central Depository System and Clearing Ltd and investors are shaken after the May 12 earthquake.
Nepse will remain closed next week also due to pressure from some big investors and the brokerage companies. The share market was closed after the April 25 earthquake as some of the brokerage firms and Registrar to Shares (RTS) suffered huge damage, apart from Central Depository System (CDS) and Clearing Ltd, that was worst hit.
Though, some of the stakeholders proposed the market to open partially – during today’s meeting – most of the stakeholders sought for few more days to calm the nerves of the shaken investors. “The market has lost confidence after the May 12 earthquake,” they said, suggesting Nepse to open trading for an hour Sunday, and gradually increase its trading hour to normal. But Thapaliya said that the Nepse cannot open for only one hour. “Either the trading hours will be normal or the market will remain closed for the time being,” he added.
The market operates for three hours from 12 to 3 five days a week from Sunday to Thursday.
Some of the Registrar to Shares including Civil Capital, Siddhartha Capital, NMB Capital and Growmore Merchant Banker have asked for an additional period of one week to set up their offices damaged by the earthquakes. Similarly, CDS and Clearing Ltd has also sought time to shift its office to Nepse premises in Bhadrakali from the current building that has been damaged badly.
The share market that is going to open after a month from the earthquake of April 25 is expected to see a selling pressure due to investors’ need of cash and also lost confidence.