KATHMANDU, Dec 23: Nepal Stock Exchange (Nepse) is introducing a new feature on its website that allows stock market investors to see 'market depth'.
The new feature will go online from Sunday, according to Nepse General Manager Sitaram Thapaliya.
Market depth refers to a list of buying and selling orders of securities which are organized by price level and updates to reflect real-time market activity. Though such list was already available to investors in other countries, such privilege was limited only to the stock brokers in Nepal.
Once the new feature goes online, investors will not have to depend on the stock brokers to know about the position of buying and selling orders of listed companies in the stock market.
"Investors can visit our website to see the market depth. They can see top five companies in terms of price. This can be helpful to investors as the feature shows not only where the price is now, but where it is likely to be in the near future," said Thapaliya.
"Investors can make informed judgment based on the direction of the market. For example if a company has selling order of 1,000 units of shares and it is getting a buying order only of 100 units. This mean share price is likely to fall and investors can make trading decision accordingly," he added.
Stock brokers also say the new facility will help to boost confidence level of investors. "Investors can also gauge the direction of the market by seeing the market depth. Now, they cannot accuse stock brokers of not give information about actual market position to the investors," Priya Raj Regmi, president of Stock Brokers Association of Nepal (SBAN), said.
Investors are upbeat with the introduction of the new facility. "This is very common in other countries. Here, investors so far were making decision on the basis of market position provided by the stock broker. They can now see information themselves and decide whether to buy or sell," said Raj Kumar Timilsina, president of Nepal Investors Forum -- a lobby group of investors.