KATHMANDU: The large swings on the Nepal Stock Exchange (NEPSE) today triggered the activation of two circuit breakers. The market began with volatility, raising 4% from yesterday's closing price to 2,135.87 points within minutes of its start. Trading was halted for twenty minutes after the first circuit breaker was triggered.
The market resumed trading at 11:21 AM and gained 1% further, or 102 points, until the second circuit breaker tripped, stopping trade for forty minutes. The market began to decrease around 12:01 PM, having peaked at 2,162 points. This was the third time that trading had resumed. The general attitude was upbeat despite variations over the day.
According to NEPSE guidelines, if there is a 4% change in an hour, trading must cease for 20 minutes; if there is a 5% movement in two hours, trade must stop for 40 minutes. If the price fluctuation reaches 6% at any point throughout the trading day, the day is ended. Following a difficult day, the market averted a shutdown and finished strongly, defying expectations of a third circuit breaker.
During today's trading session, the sensitive index, reflecting class 'A' stock performance, increased by 2.47%, while the float index, which tracks actively traded shares, rose by 2.41%. Despite the market's fluctuating performance after the third reopening, all sectors recorded gains. The manufacturing and processing sector led with a 3.30% increase, followed by the trading sector at 3.12% and the banking sector at 3.03%.
Market data for the day showed 227 companies advancing, 17 declining, and three remaining unchanged. The day's turnover surged to Rs 4.57 billion, with 11,645,905 units of shares from 315 companies traded in 60,720 transactions. This marked an increase from the previous day's turnover of Rs 2.99 billion. The total market capitalization concluded at Rs 3.330 trillion, reflecting the day's positive market sentiment despite the volatility.
