KATHMANDU: The Nepal Stock Exchange (NEPSE) has implemented a new rule that changes how the opening price for the next trading session is determined. Under this system, the average price of the final 15 minutes before market close will now be considered as the opening price for the following trading day.

Previously, NEPSE used the last traded price at market close (3:00 PM) as the opening price for the next session. However, with the new rule, the price calculation will be based on the average value of transactions that occur between 2:45 PM and 3:00 PM.

For example, if a company’s stock was traded at Rs. 500 at 2:45 PM, Rs. 505 at 2:47 PM, Rs. 503 at 2:50 PM, Rs. 508 at 2:53 PM, Rs. 502 at 2:55 PM, and Rs. 507 at 2:58 PM, the new opening price would be determined by averaging these values. In this case, the opening price for the next day would be Rs. 504.17, rather than the last traded price of the day.

This change is expected to reduce price manipulation by preventing large investors from artificially inflating or deflating stock prices in the final moments of trading. It will also enhance market stability, ensuring a smoother price transition and a more accurate reflection of stock values. NEPSE believes this adjustment will make the stock market more transparent and reliable for all investors.