KATHMANDU: The Nepal Stock Exchange Limited (NEPSE) saw a notable rise this morning as its main index surged by 5 percent, resulting in a second temporary trading halt.
This sharp increase led to a 40-minute suspension of trading, highlighting the significant effects of market volatility.
During this pause, the total turnover amounted to Rs 52.49 crore.
Trading resumed at 12:02 PM with the index showing a gain of 129.07 points.
Earlier today, the market encountered another brief halt when the benchmark index rose by 4 percent shortly after opening.
Trading recommenced at 11:21 AM following this short break.
NEPSE employs Index-based Circuit Breakers to address extreme market fluctuations.
The thresholds for these breaks are set at 4 percent, 5 percent, and 6 percent in either direction to manage market volatility effectively.
For a 5 percent movement, NEPSE implements a 40-minute trading halt if it occurs before 1:00 PM.
If the movement happens after 1:00 PM, trading continues without interruption.
A 6 percent movement, however, leads to a complete trading halt for the remainder of the day, providing a robust response to exceptional market changes.
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