The Nepal Stock Exchange (NEPSE) has revealed that the closing prices for listed companies will once again align with the last traded price. This updated regulation will be implemented starting Tuesday, Ashwin 7, 2082, as Ashwin 6 observes a public holiday for Ghatasthapana, marking the first day of Dashain.
Previously, NEPSE had employed an average-based calculation method. Within the framework of the 15-minute weighted average system, the closing price was established based on all trades conducted between 2:45 PM and 3:00 PM. Under this approach, transactions with greater volumes held more significance, ensuring that larger trades had a more substantial impact on the final price while diminishing the influence of minor, last-minute trades. With this modification, the closing price will straightforwardly represent the value of the last transaction completed during regular trading hours.
This alteration is anticipated to provide increased clarity and simplicity for investors when assessing stock fluctuations and the benchmark index. Market participants had expressed concerns regarding the previous method, claiming that it often led to uncertainty about the actual trading prices of stocks. By reverting to the last traded price framework, NEPSE aspires to enhance consistency and rebuild investor trust in price reporting.
