NEPSE plummets stock market
17th September 2025, Kathmandu
NEPSE plummets stock market 160.33 points, ending a brief return to trading with a third negative circuit breaker. Following recent protests and political unrest, the stock market in Nepal had been closed since last Tuesday.
NEPSE plummets stock market
Its much-anticipated reopening today (Thursday) was short-lived as trading was quickly brought to a halt. The sharp decline was triggered by a series of events, leading to a complete shutdown for the day.
This unexpected turn of events has left investors concerned and the market in a state of uncertainty. The circuit breaker system, designed to prevent heavy losses, was activated multiple times, and ultimately, trading halted completely.
A Swift and Dramatic Decline
The market’s decline began the moment trading opened. Within just two minutes, the NEPSE index dropped by 4%. This triggered the first circuit breaker, a 20-minute halt in trading. The brief suspension was a sign of what was to come.
Second Circuit Breaker Activated
After the 20-minute halt, the market reopened. However, the respite was minimal. Within a single minute, the market plunged another 5%, activating the second circuit breaker. This led to a longer, 40-minute suspension of all trading activities.
Third Circuit Breaker Ends the Day
When trading resumed after the second halt, hope for a recovery was quickly dashed. The market soon dropped another 6%, triggering the third circuit breaker. This final suspension brought all trading to an end for the day. The NEPSE index settled at 2,511.91, a significant drop from its previous closing.
Understanding the Circuit Breaker System
A circuit breaker is a crucial system in any stock exchange. It automatically suspends trading when the market experiences a sharp rise or fall. This mechanism protects investors from heavy losses during extreme market volatility. The system is designed to provide a pause, allowing the market to stabilize and preventing panic selling or buying.
Trading Volume and Market Performance
Despite the market being open for only a few minutes, a transaction volume of Rs 720 million was recorded. This indicates that while the market was in a freefall, some trading did occur. However, the overwhelming trend was a downward one, leading to the early closure. The market’s performance reflects the ongoing political and economic concerns within the country.
Looking Ahead
The swift closure of the stock market raises questions about its stability. Investors and analysts will be watching closely to see how the market reacts in the coming days.
nThe repeated activation of circuit breakers highlights the current fragility of the financial landscape. The NEPSE’s performance is often seen as a barometer of the country’s economic health, and this dramatic decline sends a clear signal of ongoing challenges.
For more: NEPSE plummets stock market