Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Trading at the Nepal Stock Exchange (NEPSE) was temporarily halted shortly after the market opened on Monday after the benchmark index jumped sharply within the first minute of trading, triggering the circuit breaker mechanism.
According to NEPSE officials, the market surged by 4 percent within a minute, forcing the exchange to suspend trading for 20 minutes under the automatic circuit-breaker rule designed to control extreme volatility in the stock market.
The NEPSE index rose by 108.60 points, reaching 2,821.10 points before trading was halted. The surge reflects strong investor sentiment following the recent election results, which appear to have fueled optimism among investors in Nepal’s capital market.
During the brief trading window before the halt, 231 listed companies recorded transactions. A total of 3.29 million shares (32,90,644 units) changed hands, generating a turnover of approximately Rs 189.6 million (Rs 18 crore 96 lakh 12 thousand).
Market analysts say such rapid gains immediately after the opening bell often indicate pent-up demand from investors reacting to political developments, economic expectations, and policy outlook following elections in Nepal.
Under NEPSE regulations, a 4 percent intraday rise in the benchmark index triggers a 20-minute trading suspension, allowing investors and brokers time to reassess market conditions and prevent excessive speculation.
The sharp rally comes after the previous trading session last Tuesday, when the NEPSE index had already posted gains. On that day, the benchmark index climbed 38.52 points to close at 2,712.49.
Financial market observers note that political stability, expectations of economic reforms, banking sector liquidity, and renewed investor confidence often drive strong rallies in Nepal’s stock market after major political events.
Nepal’s capital market has seen increased participation from retail investors, institutional funds, and diaspora investors, making NEPSE one of the most closely watched indicators of Nepal’s economic outlook, investment climate, and business sentiment.
The development is being closely monitored by investors, brokers, and regulators as the market resumes trading after the temporary halt, with attention focused on whether the bullish momentum will continue throughout the trading session.
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