Kathmandu: The stock market has faced a second negative circuit.
On Thursday, within the first two minutes of trading, the Nepal Stock Exchange (NEPSE) index plunged by 107.04 points, or 4 percent, triggering the first negative circuit.
After a 20-minute halt, trading resumed, but the market quickly faced a second negative circuit. Within just a few minutes of reopening, the NEPSE index fell by 133.63 points, or 5 percent, leading to another halt.
With the second negative circuit, NEPSE dropped by 133.61 points to 2,538.63. Trading will now only resume after 40 minutes.
According to existing rules, if the NEPSE index rises or falls by 4 percent within the first hour of trading, a circuit breaker is triggered, and transactions are suspended for 20 minutes.
If the market rises or falls by 5 percent within the second hour of trading, transactions are suspended for 40 minutes. Similarly, if the index moves by 6 percent in a single day, the market remains closed for the rest of the day.
The impact of the Gen Z protests of September 8–9 is being felt in the stock market. Fearing a sharp decline, some investors had earlier requested authorities not to reopen the market immediately.
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