Dramatic Surge in NEPSE; 40-Minute Trading Halt with 5% spike  

Kathmandu: The Nepal Stock Exchange Limited (NEPSE) has experienced a dramatic surge this morning.

NEPSE hit its benchmark index surged by 5%, after a rapid surge of 4.01% or 82 points just after the opening of the market. This vital increase led NEPSE to halt its operation for 40 minutes, underscoring the impact of market dynamics on trading activities.

The total turnover during the suspension period reached Rs. 141.7 million (i.e. Rs.14.17 crore). NEPSE is at 102.68 points at the current point. The trading resumed at 11:21 a.m.

Previously, Just after the opening of the market on Tuesday, the points reached 2, 135.87. This resulted in NEPSE to suspend its operation temporarily.

The total turnover in NEPSE, during the brief period, amounted to Rs. 86.9 million (i.e. Rs. 8.69 crores).

To mitigate the extreme market movements, NEPSE follows a system of Index-based Circuit Breakers. The trigger thresholds are set at 4%, 5%, and 6% in either direction. This would ensure a measured response to market volatility.

According to the protocol of NEPSE, in the case of a 5% movement, a 40-minute trading halt would be enforced if it occurs before 1:00 p.m. If the movement happens after 1:00 p.m., trading continues without a halt.

A 6% movement would trigger a complete trading halt for the rest of the day, ensuring comprehensive measures in the face of unprecedented market fluctuations.