The Nepal Stock Exchange Limited (NEPSE) experienced a rapid surge today, with the benchmark index climbing 4.01% or 82.48 points to reach 2,135.87 points within a minute of the market opening. This significant increase led to a temporary suspension of trading. During this brief period, the total turnover amounted to Rs. 8.69 Crore. Trading is set to resume at 11:21 AM.
NEPSE employs Index-based Circuit Breakers to manage extreme market movements, with triggers set at 4%, 5%, and 6% in either direction. These circuit breakers are designed to induce trading halts across all equities, ensuring stability and preventing excessive volatility.
Circuit Breaker Triggers:
4% Movement: A 20-minute trading halt is triggered if the movement occurs during the first hour of trading (before 12:00 PM). If it happens after 12:00 PM, trading continues without a halt.
5% Movement: A 40-minute trading halt is triggered if the movement occurs before 1:00 PM. If it happens after 1:00 PM, trading continues without a halt.
6% Movement: A complete trading halt for the rest of the day is triggered if the movement occurs in either direction.