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Five positive impact of extending trading hours

By: Nepse Direct Mar 16, 2020

Nepal Stock Exchange (NEPSE) extended the trading duration to five hours from Chaitra 02, 2076. The preliminary trading will begin from 10:30 AM till 11 AM. Then from 11 till 4 PM regular trading will occur with last transactions settled till 4:05 PM. The extension of trading hours is intended to provide more trading opportunities and improve price efficiency. 

In the initial day of extending trading hour NEPSE falls down by double digits. Many investor are in dilemma whether the extension of trading hour have negative imapct over the market.  But not really,  market doesn't move in straight line but moves in zigzag with highs and lows. This is the nature of stock market.The cause of recent market correction can be the fears of corona-virus paralyzing the economy, re-appointment of Finance Minster Dr.Yuvraj Khatiwada, rapid raise in share price in the short period, lack of investors confidence and so on.

No sonner or later market will rebounce its the nature of market to rebounce after the correction. Here are some positive impact of extension of trading hours over the market.

  1. The job holder, who was passionate about stock market, but unable to do so, can be benefited.
  2. The extension of trading hours is effective in creating more trading opportunities and increasing price efficiency.
  3. The extension of trading hours could increase trading concentration.
  4. Market will become more matured and index volatility can be reduced by more participation from retail traders and investors.
  5. Extending the trading hours can increases daily trading volume.

Mega Maya Bachat Khata
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