NEPSE Index Correction Sparks Investor Outrage, Ends With 7.10-Point Gain After Triple Adjustment

29th July 2025, Kathmandu

Monday witnessed a day of significant turbulence and public outcry on the Nepal Stock Exchange (NEPSE) as a technical error in its closing averaging method initially reported a decline in the index. This miscalculation triggered immediate confusion and sharp criticism from investors and traders, ultimately leading to multiple corrections before the NEPSE index was officially recorded as a 7.10 point gain, closing at 2,971.31 points.

NEPSE Index Recovery Outrage

The trading day had initially displayed positive momentum and normal market fluctuations. By the 3:00 PM closing bell, the NEPSE index had clearly registered a 12-point gain, even touching highs of 2,976.34 points in the final minutes of trading. However, postmarket data surprisingly indicated a 2.07 point drop. This discrepancy was attributed to NEPSE’s application of its closing averaging method, which calculates the weighted average of prices over the last 15 minutes of trading.

Investor Confusion and Backlash Erupt Over Discrepancy

The stark contrast between the live market performance and the initial postmarket figures caused an immediate uproar within the investing community. Investors and traders quickly took to social media platforms and financial forums, expressing widespread frustration and alleging severe mismanagement and a critical lack of transparency from the stock exchange. Some even went as far as to accuse NEPSE of deliberate manipulation, particularly given that the intraday figures clearly showed a double-digit gain.

A central point of contention for investors was the methodology employed to calculate the closing average. Many questioned why the weighted average price method had seemingly failed to align with the clear upward trend that was observed and confirmed during the actual market close. The disparity fueled speculation and eroded investor confidence.

In response to the mounting pressure and public outcry, NEPSE undertook not one, but three revisions of the index throughout the evening. It was only after these iterative adjustments that NEPSE finally acknowledged a significant technical miscalculation. The definitive and final adjustment revealed that the index had, in fact, gained 7.10 points, a figure far more consistent with actual investor expectations and the day’s observable trading patterns.

NEPSE Issues Formal Clarification and Apology

Following the widespread criticism and calls for accountability, NEPSE promptly issued an official statement acknowledging the error. The notice released by the exchange stated:

“Due to a technical issue in the system during the postmarket calculation of the weighted average for the NEPSE index, a discrepancy occurred. The issue has now been resolved, and we sincerely apologize for any inconvenience caused to stakeholders.”

The finally corrected data confirmed the index closing at 2,971.31 points, reflecting a 7.10-point increase from the previous trading day. The intraday movement during the crucial final trading hour further underscored the bullish trend that contradicted the initial erroneous report:

• 2:45 PM: 2,967.08 points
• 2:50 PM: 2,969.65 points
• 2:55 PM: 2,972.27 points
• 3:00 PM: 2,976.34 points

This clear upward progression in the index throughout the closing minutes made the initial reported drop in the postmarket average profoundly confusing and unacceptable to the investor community, leading to the strong negative reactions.

Calls for Enhanced Transparency and Systemic Reforms

This highly publicized incident has brought to the forefront serious concerns regarding the technical infrastructure and overall transparency of NEPSE’s trading and data dissemination systems. Market analysts, investor advocacy groups, and individual traders have collectively called for immediate and decisive action from NEPSE to address these vulnerabilities. Key demands include:

• Transparent Disclosure: A clear and comprehensive public disclosure of the exact calculation methodology used for closing averages, ensuring no ambiguity.
• System Robustness: Significant improvements in system stability and robustness to prevent similar technical errors from occurring in the future.
• Realtime Accuracy: Establishment of a reliable real-time index update mechanism that accurately reflects actual trading activity without any inconsistencies or delays.

The incident has undeniably cast a shadow on investor confidence, particularly as the NEPSE index approaches the significant 3,000point psychological barrier. This level is widely considered a key indicator of market momentum and overall health, making accuracy and reliability even more paramount.

Broader Implications for Market Integrity

While the final outcome of Monday’s trading day ultimately showed a positive market close, the technical error has starkly highlighted underlying vulnerabilities in the market’s operational integrity. With a continually growing number of retail investors entering the Nepalese stock market, ensuring absolute accuracy, unwavering transparency, and timely communication from NEPSE has become more crucial than ever before.

As of the latest reports, the Securities Board of Nepal (SEBON), the primary regulatory body, has yet to issue an official response to the incident. However, market experts widely anticipate that this highprofile error will prompt a thorough review of NEPSE’s postmarket processes and its entire technical infrastructure, potentially leading to new directives aimed at strengthening market reliability and investor protection.

For More: NEPSE Index Recovery Outrage