NEPSE shuts early after 6% surge as third circuit breaker halts trading

Trading on the Nepal Stock Exchange (NEPSE) was halted for the rest of the day on Monday after the benchmark index surged by 6 percent, triggering the market’s third and final circuit breaker. The strong rally, largely driven by election-related optimism, resulted in one of the most remarkable single-day gains in recent times.
The NEPSE Index closed at 2,875.43 points, marking a gain of 162.93 points, or 6 percent, during the trading session. According to exchange regulations, any movement of 6 per cent or more in the index leads to an automatic closure of the market for the remainder of the day.
Earlier in the day, the market had already experienced two trading halts. The first suspension occurred shortly after the opening bell when the index surged 108 points, or about 4 percent, reaching 2,821.10 points. This triggered a 20-minute halt, as per NEPSE’s circuit breaker rules.
When trading resumed at 11:21 am, buying momentum continued and pushed the index further to 2,848.22 points, reflecting a 5 percent increase. This resulted in a second halt of 40 minutes. The market reopened again at 12:01 pm, but the strong buying pressure remained.
Within minutes of reopening, the index climbed further to reach the 6 percent threshold, prompting the third circuit breaker and forcing the exchange to close trading for the rest of the day.
Despite the shortened trading hours, market activity remained significant. The total turnover reached Rs 555 million, with 1,143,767 units of shares from 261 companies traded through 4,051 transactions.
Most stocks recorded gains during the session. Out of the total traded scrips, 252 companies saw their share prices rise. Two companies—Corporate Development Bank Limited and Shiva Shree Hydropower Ltd.—hit the upper circuit limit of 10 percent. Only one company, Reliance Spinning Mills Limited, declined and reached the lower circuit limit of 10 per cent.
The sensitive index, which tracks Class A companies, rose by 6.03 per cent, while the float index, representing actively traded shares, increased by 6.10 per cent.
Sector-wise, the trading sector led the gains with a rise of 7.73 per cent, followed by the investment sector at 7.06 per cent, banking at 6.92 per cent, and hydropower at 6.81 per cent.
Under NEPSE regulations, trading is halted for 20 minutes if the index moves by 4 per cent within the first hour, 40 minutes if it moves by 5 per cent within two hours, and the market is closed for the entire day if the movement reaches 6 per cent or more.
Monday’s sharp rally highlights the strong investor sentiment in the market, particularly amid heightened political developments surrounding the upcoming elections.