Propelled by political breakthrough, market hits two circuit breakers

ShareSansar, February 10:

The only stock market in the country hits two consecutive circuits today, buoyed by the agreement between the two largest political parties in the country – the Nepali Congress and the CPN-UML – to form a government under the leadership of NC President Sushil Koirala.

Nepal Stock Exchange Limited hit the first circuit break at 12:13 after the benchmark index surged reached 808.75 level by 3 percent within 13 minutes after the market opened. The total turnover at that time was Rs 6 crore.

The second circuit break was hit at 817.17 as benchmark index surged by 4 percent immediately after the market resumed at 12:33 PM with some 9 crore turnover.

Coming to the end of the day, the market came to close at 803.09 levels, with a gain of 19.09 points or 2.43 percent.

Even before the market opened for the day, the stakeholders were confident that the market will rise drastically today.

“The market will definitely hit the first circuit breaker in response to the outlet the country has found following a drawn-out negotiation between the Nepali Congress and the UML,” chairperson of Stock Brokers’ Association Narendra Sijapati had told ShareSansar earlier in the morning, hours before the market opened for the day.

“There is a tremendous positive vibe in the market following the news of the agreement between the largest parties,” share investor Jeevan Shrestha told us in the morning. “The market will most likely hit the circuits today. And I won’t be surprised if the market, which was consolidating for weeks, will breach 806 levels today.”