Shares worth Nu 1.17mn traded during second lockdown

Shares worth Nu 1.17mn traded during second lockdown

Despite the second nationwide lockdown, the stock market in the secondary trading platform at the Royal Securities Exchange of Bhutan (RSEB) was operational.

This is mainly attributed to the mCaMS, a mobile application, launched in 2019, through which traders can do online trading.

During lockdown 2.0, a total of 40,949 shares from 13 listed companies worth Nu 1.17mn were traded from December 20 to 31, 2020.

During the previous lockdown, day 14 saw 93,890 shares traded worth Nu 2.8mn.

There were 69 traders, and 217 trades were executed through 40 mCaMs users.

The Chief Executive Officer (CEO) of RSEB, Dorji Phuntsho said that the first lookdown did not see a large volume of trading as compared to the second lockdown.

However, he said that the usual trend is that by year, the trading decreases.

“Most of the companies hold it for three months until they declare their dividend and profit,” said the CEO.

He also mentioned that after first quarter of the year the trading picks up again.

“During the lockdown, employees still worked from the office and services were provided uninterrupted.”

However, he said that most of the investors are not aware of the services.

He said that one challenge that they faced during the lockdown was delay in the settlement since they had to depend on the settlement bank.

He also said usually, the settlement is done in two to three days. By this time the seller gets the money and ownership is transferred to the buyer.

“Compared to 2019, secondary stock market decreased marginally in 2020.”

The market capitalization at the end of 2019 was Nu 51bn, and as of 2020 end, the market capitalization stood at Nu 46.9bn.

Dechen Dolker from Thimphu