KATHMANDU, MARCH 4
The Nepal Stock Exchange (NEPSE) experienced a tumultuous trading day, prompting three consecutive circuit breaks and ultimately halting trading for the day.
Trading commenced at 11 am, witnessing a rapid ascent of 4% or 79 points from the previous day's close, triggering the first circuit break merely three minutes into the session.
After a 20-minute suspension, trading resumed, only to face another surge of 5% or 98 points, leading to a second circuit break at 11:24 am. The market was suspended for 40 minutes.
Upon reopening at 12:04 pm, the market saw a further 1% increase, culminating in a total 6% rise from the previous day and triggering the third circuit break, resulting in the complete cessation of trading for the day. The NEPSE index soared by 117.70 points, settling at 2,078 points.
According to the regulations, a 20-minute halt is required after a 4% movement within an hour, a 40-minute halt for a 5% movement within two hours, and closure for the day for a 6% movement at any time.
The NEPSE had last experienced a three consecutive circuit break on December 10.
Amid this volatile trading environment, indices saw significant gains, with the sensitive index rising by 5.58% and the Float index jumping by 6.12%.
Due to the short trading period, the daily turnover amounted to just Rs 375 million, with shares of 237 companies exchanged in 3,863 transactions.
Interestingly, amidst the widespread gains across various sectors, the mutual fund sector experienced a marginal loss of 0.10%. However, it was an outlier, as other sectors recorded significant gains. Leading the charge was the hydropower sector with a staggering 7.86% surge, closely trailed by development banks, finance, investment, life insurance, and Other sectors, all boasting gains exceeding 6%.
During this whirlwind trading session, five companies triggered a 10% positive circuit break, including Ridi Power Company Limited (RIDI), Shiva Shree Hydropower Ltd (SSHL), Rapti Hydro and General Construction Limited (RHGCL), Menchhhiyam Hydropower Limited (MCHL), and Reliable Nepal Life Insurance Limited (RNLI).
