NEPSE Faces Dual Halts as Benchmark Index Surges, Resumes Trading After Brief Suspension of 40 Minutes

On a rollercoaster morning at the Nepal Stock Exchange Limited (NEPSE), the benchmark index witnessed a second temporary halt, lasting 40 minutes, in response to a significant 5% surge. This abrupt increase led NEPSE to suspend its operations temporarily, emphasizing the impact of market dynamics on trading activities. Notably, the total turnover in NEPSE during this brief suspension amounted to a staggering Rs 29.6 Crore. Now the market will resume at 12:07 PM.

The latest interruption comes on the heels of an earlier market pause today when the benchmark index experienced a swift 4% surge within the initial 5 minutes of the market opening. Following a brief hiatus, trading resumed at 11:25 AM.

NEPSE adheres to a robust system of Index-based Circuit Breakers designed to manage extreme market movements. Trigger thresholds are set at 4%, 5%, and 6% in either direction, ensuring a measured response to market volatility. 

Specifically addressing the 5% movement, NEPSE's protocol enforces a 40-minute trading halt if it occurs before 13:00 hours. However, if the movement takes place after 13:00 hours, trading continues without a halt. On the other hand, a 6% movement triggers a complete trading halt for the remainder of the day, ensuring comprehensive measures in the face of unprecedented market fluctuations.

NEPSE Implements Circuit Breakers as Benchmark Index Surges by 4%, Triggers Temporary Trading Halt