NEPSE's Dramatic Surge: 5% Spike Triggers 40-Minute Trading Halt, Turnover Hits Rs 28.51 Crore

Nepal Stock Exchange Limited (NEPSE) experienced a dramatic morning as its benchmark index surged by 5%, prompting a second temporary halt in trading. This significant increase led NEPSE to suspend operations for 40 minutes, underscoring the impact of market dynamics on trading activities. The total turnover during this suspension reached Rs 28.51 Crore. Currently, NEPSE stands at 2,848.22, resuming trading at 12:01 PM with a positive change of 135.72 points.

Earlier in the day, the market faced another interruption when the benchmark index surged by 4% within a minute of opening. Trading resumed at 11:21 AM after a brief hiatus.

NEPSE follows a system of Index-based Circuit Breakers to manage extreme market movements. The trigger thresholds are set at 4%, 5%, and 6% in either direction to ensure a measured response to market volatility.

In the case of a 5% movement, NEPSE's protocol enforces a 40-minute trading halt if it occurs before 13:00 hours. If the movement happens after 13:00 hours, trading continues without a halt. A 6% movement triggers a complete trading halt for the rest of the day, ensuring comprehensive measures in the face of unprecedented market fluctuations.