KATHMANDU: This morning, the main index of the Nepal Stock Exchange Limited (NEPSE) saw a notable increase of 5%, which resulted in a second temporary halt to trading. The impact of market volatility was highlighted by the 40-minute trade suspension that followed this significant surge. During this break, the total turnover was Rs 52.49 crore.

Trading resumed at 12:02 PM, with the index showing a gain of 129.07 points. Earlier in the day, the market faced another brief halt when the benchmark index rose by 4 percent shortly after the opening. Trading recommenced at 11:21 AM after this short break.

NEPSE uses Index-based Circuit Breakers to manage extreme market fluctuations. The thresholds for these breaks are set at 4 percent, 5 percent, and 6 percent in either direction to effectively control market volatility. A 5 percent movement results in a 40-minute trading halt if it occurs before 1:00 PM. If it happens after 1:00 PM, trading continues without interruption.

To provide a robust response to unusual market movements, NEPSE executes a full trading halt for the duration of the day in the event of a 6 percent swing.