NEPSE sees triple circuit breaker on first trading day after election

By A Staff Reporter,Kathmandu, Mar. 10: On the first trading day after the election, the benchmark share market index, NEPSE, rose by 6 per cent, triggering the third circuit breaker, after which share trading was closed for the rest of the day.

When the market opened after about a week, the NEPSE index had already increased significantly during the pre-open session.

Just one minute after regular trading started at 11:00 AM, the NEPSE index rose by 4 per cent, causing trading to be suspended for 20 minutes.

When the market reopened at 11:21 AM, the 5 per cent circuit breaker was triggered again, and trading was halted for 40 minutes.

After that, when the market reopened at 12:01 PM, the index increased by 6 per cent within 38 seconds (at 12:01:38 PM), triggering the third circuit breaker.

With the third circuit breaker triggered, share trading has been closed for the rest of the day.

The NEPSE index surged by 162.93 points to close at 2,875.44 points.

The results of the House of Representatives elections across the country are continuing to come in. According to the results so far, the Rastriya Swatantra Party has reached close to two-thirds. Analysts believe this has increased investor confidence and has had an impact on the market.

The sensitive index which measures the performance of group ‘A’ companies also increased by 28.11 points (6.03 per cent) to close at 494.10 points.

A total of 1,143,767 shares worth Rs. 555 million of 261 companies were bought and sold in 4,051 transactions today. 

According to NEPSE, the sub-indices of all groups have increased in today’s transaction.

Sub-index of life insurance group posted the highest growth of 610.32 points (4.67 per cent) followed by manufacturing and processing group and hotels and tourism whose indices increased by 497.06 points (5.30 per cent) and 422.91points (5.73 per cent) respectively.

Similarly, sub-index of non-life insurance rose by 417.90 points (3.74 per cent), development bank by 342.74 points (5.91 per cent), trading by 282.38 points (7.73 per cent), hydropower by 243.75 points (5.91 per cent) and microfinance by 201.10 points (4.07 per cent).

The sub-index of finance group increased by 138.69 points (5.47 per cent), others by 130.92 points (5.56 per cent), banking by 97.19 points (6.92 per cent), investment by 7.50 points (7.06 per cent) and mutual fund by 0.03 points (0.18 per cent).

The share prices of 257 companies increased, while the price of only one company declined in today’s trading.

Share prices of Corporate Development Bank and Shiva Shree Hydropower increased by 10 per cent each. 

Similarly, the share price of Himalayan Reinsurance increased by 9.99 per cent, City Hotel by 9.98 per cent, Nepal Infrastructure Bank by 9.97 per cent and Nepal Bank by 9.96 per cent.

However, the share price of only one company—Reliance Spinning Mills—decreased by 10.20 per cent.