Circuit breakers kick in 40 minutes after trading begins today
The market has now resumed operations after IndexFilter halt.
KATHMANDU: The Nepal Stock Exchange (Nepse) index has kicked in circuit breakers after the share transaction anomalously dropped down today.
The circuit breaker was imposed after the Nepse index dropped by 3 per cent approximately in 40 minutes after the trading on exchange started.
The benchmark index, which opened at 1,468, plunged by 52.76 points to rest at 1,415, compelled Nepse to halt the operation on Monday.
There has been selling pressure in the stock market as investors have been attracted towards the higher interest rates on deposits being offered by banks and financial institutions. On the other hand, demonetisation of INR 500 and INR 1,000 notes has also put pressure on those investors holding high amount of such currency to sell shares due to cash crunch to run their day to day business, according to stock market analysts.
Small and medium investors who are considered a major factor for the stability of the market have also felt threatened with the continued market trend.
The circuit breakers had also halted the trading twice on Sunday.