On Thursday, the Nepal Stock Exchange (NEPSE) faced one of its most tumultuous trading days, with the benchmark index plummeting by 160.33 points (6.00%) to close at 2,511.91, compounding losses following a 35.99-point drop in the prior session.
The trading session commenced with considerable upheaval, lasting a mere three minutes before the index tumbled by 4%, triggering the initial phase of NEPSE’s circuit breaker protocol, which resulted in a 20-minute halt. Trading recommenced at 11:23 AM, yet the reprieve was fleeting. In under a minute, the benchmark fell by 5%, activating a 40-minute pause. The final setback transpired post-resumption at 12:04 PM, as the index descended further to the 6% lower circuit within just two minutes, necessitating a complete cessation of trading for the day in accordance with NEPSE’s regulations.
Throughout the day, NEPSE commenced at 2,637.98 points, reached an intraday peak of 2,637.97, and touched a low of 2,511.91 before concluding at the same point. A total of 1,752,781 shares from 238 companies exchanged hands over 7,435 transactions, resulting in a turnover of Rs. 72.87 crore. The market capitalization suffered a staggering decline of nearly Rs. 2.68 kharba within minutes, representing one of the most significant reductions in investor wealth in recent times.
This financial chaos unfolded amid a backdrop of nationwide turmoil. The “Gen Z protests” erupted as demonstrators protested against corruption, nepotism, and social media restrictions. The violent wave of protests ultimately compelled Prime Minister KP Sharma Oli to resign, leaving pivotal state institutions in disarray and casting uncertainty over both the political and economic scenery.
The triple implementation of circuit breakers and the magnitude of investor losses highlight the precarious sentiment dominating Nepal’s capital markets, with political turmoil exacerbating financial instability.
