KATHMANDU: Trading at the Nepal Stock Exchange (NEPSE) was halted for the day after the benchmark index triggered the third positive circuit breaker during Monday’s session.
The NEPSE Index surged by 162.93 points to close at 2,875.43, marking a six percent increase. Investor sentiment turned strongly positive as the stock market reopened for the first time following the House of Representatives election.
Soon after trading began, the index jumped four percent, triggering the first positive circuit breaker and halting trading for 20 minutes.
When trading resumed at 11:21 am, the index hit the second positive circuit within a minute as it climbed five percent, leading to another suspension of trading for 40 minutes.
At 12:01 pm, the index rose by six percent, activating the third positive circuit breaker. According to NEPSE rules, once the index rises or falls by six percent during the third hour of trading or later, the market is closed for the remainder of the day.
Under the current circuit breaker mechanism, trading is halted for 20 minutes if the index rises or falls by four percent within the first hour of trading. If the index changes by five percent in the second hour, trading is suspended for 40 minutes. A six percent movement in the third hour or afterward results in the suspension of trading for the rest of the day.
A total of 1,143,767 shares of 261 listed companies were traded through 4,051 transactions, generating a turnover of Rs 555.96 million.
Sector-wise, banking rose by 6.92 percent, development banks by 5.91 percent, finance by 5.47 percent, hotels and tourism by 5.73 percent, hydropower by 6.81 percent, and the investment group by 7.06 percent.
Similarly, life insurance increased by 4.67 percent, manufacturing and processing by 5.30 percent, microfinance by 4.07 percent, mutual funds by 0.18 percent, non-life insurance by 3.74 percent, trading by 7.73 percent, and the other group by 5.56 percent.
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