KATHMANDU, JULY 28

The Nepal Stock Exchange (NEPSE) index experienced a second circuit break following a total of 5% surge from the previous day, resulting in a 40-minute halt in the trading floor.

The market saw a 4% rise, gaining 102.68 points, within a minute after opening at 11:00 AM, triggering the first circuit break at 11:01 AM. Starting at 2606.42 points, the index quickly reached 2670.82 points.

The market resumed at 11:21 am and again immediately saw a surge of another 1%, or 26.39 points, making the total 5% surge and leading to the second market halt for the second time at 11:22 am. The market has been halted for another 40 minutes.

At the time of the market halt, the index had reached 2,697.21 points, with an increase of 129.07 points.

As per NEPSE regulations, a 20-minute halt is mandated after a 4% movement within an hour, a 40-minute halt for a 5% movement within two hours, and a market closure for the day if a 6% movement occurs at any time.

If this momentum persists and continues its upward trend, the market is likely to experience a third circuit break today and an early closure of trading.

According to market experts, the sentiment of investors is high following the market-conducive monetary policy published on Friday by the Nepal Rastra Bank (NRB). The policy removed the limit for institutional investors who can take shares as collateral from banks and financial institutions. The limit for institutional investors was previously Rs 200 million.

Today's market daily turnover was Rs 524 million from the exchange of 1,300,205 units of shares of 244 companies in 4,733 transactions.

By the second trading halt, four companies – Nepal Investment Mega Bank (NIMB), NMB Bank Limited (NMB), Prabhu Bank Limited (PRVU), and Global IME Bank Limited (GBIME) – experienced a 10% increase in their share value. As for individual stocks, 221 companies have advanced, while 11 declined and three have remained unchanged.

At the time of the second trading halt, the sensitive index had surged by 5.82% while the float index had risen by 5.41%.

Meanwhile, the banking sector was the top gainer with a massive 8.96% gain, followed by the trading sector with 7.27%.

Investment, manufacturing and processing, development bank, and life insurance sectors all had an increase of over 4% each.