Stock market closed for the day as NEPSE index surges six percent

Published On: March 4, 2024 12:31 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, March 4: The stock market has been suspended for the day following a surge in the Nepal Stock Exchange (NEPSE) Index. The index witnessed an unprecedented increase of 6.0% at 12:04:42.  Witnessed its second circuit break this Monday.

The initial halt was triggered as the NEPSE index surged by 4 percent or 79 points within a mere 3 minutes of trading commencement.

The market encountered another circuit breaker 20 minutes later, following a 5 percent uptick in trading activity. Subsequently, the NEPSE index soared by an additional 98 points, reaching a tally of 2059 points.

Currently, trading has been paused for 240 minutes. The circuit rules state that if the market jumps or drops by 4 percent within the initial hour of trading, it triggers a circuit break. If there's any further movement of 1 percentage point, totaling a 5 percent shift, it prompts another circuit break. Additionally, if the movement persists even after the second halt and the NEPSE index reaches a 6% increase or decrease from the previous day's closing value, it leads to a third halt of 240 minutes, effectively closing the market for the day.

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