Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Trading at the Nepal Stock Exchange (NEPSE) was closed for the remainder of Monday’s session after the benchmark index triggered the third circuit breaker, surging 6 percent amid strong investor enthusiasm following the recent House of Representatives election.
The rally marks the first trading session after the parliamentary election, where the Rastriya Swatantra Party (RSP) reportedly secured nearly a two-thirds majority of seats, fueling strong optimism in Nepal’s capital market.
Market observers say investors interpreted the political outcome as a potential shift toward economic reform, governance changes, and improved investment climate, prompting aggressive buying pressure immediately after the opening bell.
The market first triggered a 4 percent circuit breaker, forcing a 20-minute trading halt. After trading resumed, the index continued to rise and crossed the 5 percent threshold, activating the second circuit breaker, which suspended trading for 40 minutes.
When trading resumed again, the benchmark index climbed further to reach a 6 percent gain, automatically triggering the third circuit breaker, under which the market closes for the rest of the day.
Under the NEPSE circuit breaker system:
4% movement leads to a 20-minute halt.
5% movement results in a 40-minute halt.
6% movement causes the market to close for the entire trading day.
Analysts say the surge also reflects investor expectations surrounding Kathmandu Metropolitan City Mayor Balen Shah, whom the RSP has presented as its proposed candidate for prime minister.
The strong rally is being interpreted in financial circles as a symbolic “welcome signal” from Nepal’s stock market toward a potential new political leadership, with investors betting on policy stability, economic reform, and a pro-business environment in the coming government.
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