Market Update: NEPSE hits 6% negative circuit break with massive fall of 86.39 points; market is suspended for the day

The benchmark index at Nepal Stock Exchange Limited (NEPSE) has decreased by massive 6.02% percent to 1,349.32 points today at 1:13 PM. Nepal Stock Exchange has now suspended its operation for the rest of the day. The regular market will now resume tomorrow. Total turnover for the day stood Rs 1.07 arba. The market had resumed after it hit 5% negative circuit at 1:12 PM, however, it was lasted only for a minute after it hit 6% down to close for the day. 

Index-based Circuit Breakers or market halt system applies at 3 stages of the NEPSE index movement on either way by 4%, 5%, and 6%. These circuit breakers when triggered bring about a trading halt in all equities.

• In the case of 4%, movement, either way, there would be a market halt for 20 minutes if the movement takes place during the first hour of trading i.e. 12:00 hours. In case this movement takes after 12:00 hours there will be no trading halt at this level and market shall continue trading.
• In the case of 5% movement, either way, there would be a market halt for 40 minutes if the movement takes place before 13:00 hours. In case this movement takes after 13:00 hours there will be no trading halt at this level and market shall continue trading.
• In the case of 6% movement, either way, trading shall be halted for the remainder of the day.