Triple ‘Circuit Break’ jolts stock market on Sunday; NEPSE index surges by 111 points

KATHMANDU: On Sunday, the stock market faced three ‘circuit breakers,’ disrupting trading activities. The initial circuit break was triggered when the market surged by 4 percent within the first 5 minutes of the trading hour.

Following a brief resumption at 11:25, the market witnessed a 5 percent increase in just 2 minutes, leading to a second circuit break and a subsequent 40-minute trading suspension.

A third circuit break occurred at 12:07, prompted by a 6 percent increase compared to the previous day within a 2-minute timeframe. Consequently, share trading for the day was brought to a close.

The NEPSE index recorded a notable increase of 111 points, stabilizing at 1963 points. A substantial trading volume of NPR 48.24 crore occurred within a mere 9 minutes on Sunday.

In a significant move, the Nepal Rastra Bank, in its first-quarter monetary policy review released just on Friday, reduced the risk weight of loans allocated to share securities from 150 percent to 125 percent. This decision was well-received by investors, contributing to a boost in morale amid an extended period of market decline.

On this eventful day, the hydropower group led the way with an impressive 8.6 percent increase. Other notable gains were observed in the Hotel and Tourism Group (6.7 percent), Banking (5.6 percent), Development Bank (6.5 percent), Finance (6.5 percent), Investment (6.4 percent), Life Insurance (5.3 percent), Microfinance (5.6 percent), Manufacturing (4.8 percent), Non-Life Insurance (5.2 percent), and other business sub-groups (5.8 percent).

The value of shares for 13 companies saw significant increases ranging from 9.9 to 10 percent. Noteworthy performers in terms of turnover included Mountain Energy, Sonapur Cement, Nepal Insurance Co., Reliable Nepal Life Insurance, and Sun Nepal Life Insurance Company. Overall, these developments signify a dynamic and eventful trading day in Nepal’s stock market.