Who Took Corporate Development Bank to the 'Upside'? Shares Plummeted by 26.08% Amid Transactions on 10th Kitta

Unusual and interesting transactions have been observed in the stock market today. The share price of Corporate Development Bank has faced unnatural rapid fluctuations within seconds.

According to transaction details (floorsheet), after around 2:59 PM today, the price of shares was seen increasing gradually through broker number 46 from NPR 2,352.8 to NPR 3,183.

 In the same course, transactions between broker 46 (buying) and broker 58 (selling) saw the price jump from NPR 2,575 directly to NPR 3,160. Then the price climbed further through broker number 46 (buying) and broker 32 (selling) to NPR 3,183.

However, a dramatic decline was observed in the final moments of the transactions. Buyer broker number 17 observed that in the sales transactions involving broker no 3, the share price fell directly from NPR 3,183 to NPR 2,353. This decline is approximately 26.08%, which is a significant change happening in just 1 transaction with 10 unit shares.

Earlier that same day, the same transaction saw an increase of up to 22.72%, while immediately following another transaction showed a decrease of 26.08%. This kind of volatility occurring within milliseconds has started various speculations in the market. Some investors have speculated that “a big player has taken the market to the upside”.

Unusual Transactions in Corporate Development Bank Today

Overall, this transaction appears to fall within the existing regulations of the Nepal Stock Exchange (NEPSE). However, the recently observed 'circuit setup' style transactions have raised questions about market transparency and credibility.

Generally, existing rules state that the price should not fluctuate more than approximately 3% at one time. However, it seems this limit is not effectively enforced when 'market (mkt) orders' are used. Allegations have been made that old pending sale orders are being manipulated to adjust the price through market buy, resulting in price manipulation.

This incident today has raised serious questions about the structure of the market, the order matching system, and the oversight mechanism.