NEPSE Nosedives 6% on First Trading Day After Government Change

The Nepal Stock Exchange (NEPSE) declined sharply by  160.33 points on Thursday, September 18, its first trading day following the change of government, closing 6% lower at 2,511.91 points before the regular trading hours.

When trading resumed today after a long hiatus, the NEPSE index fell by 4% within just two minutes, triggering the first circuit breaker and halting trading for 20 minutes. Upon reopening at 11:22 AM, the index dropped an additional 1% in a minute, activating the second circuit breaker and suspending trading for 40 minutes. Finally, the third circuit breaker was triggered at 12:06 PM after the market reopened at 12:03 PM, leading to the suspension of trading for the rest of the day.

The market had been closed from September 9 to 17 due to severe political unrest and security concerns arising from the Gen Z-led protests. Trading had been suspended by the Securities Board of Nepal to prevent market instability.

The benchmark index had already been on a downward trend, falling 1.32% to close at 2,672.25 on September 8, marking the fifth consecutive day of decline.

On Thursday, the Sensitive Index fell by 5.64%, the Float Index by 5.85%, and the Sensitive Float Index by 5.84%.

Turnover also dropped sharply to Rs 728.70 million from Rs 5.23 billion on September 8.

A total of 1,752,781 shares were traded across 7,435 transactions. Out of 226 listed companies, only nine advanced while 217 declined.

Him Star Urja Company Limited (HIMSTAR) emerged as the top gainer of the day, surging 9.99% to close at Rs 473.50 per share.

Meanwhile, eight companies—Unnati Sahakarya Laghubitta Bittiya Sanstha Limited (USLB), Nepal Reinsurance Company Limited (NRIC), Nepal Micro Insurance Company Limited (NMIC), Trade Tower Limited (TTL), Sindhu Bikash Bank Ltd (SINDU), Soaltee Hotel Limited (SHL), IGI Prudential Insurance Limited (IGI), and Synergy Power Development Ltd. (SPDL)—hit the lowest circuit limit.

Himalayan Distillery Limited (HDL) led in turnover at Rs 40.87 million, followed closely by CEDB Holdings Limited (CHDC) at Rs 40.44 million and Shivam Cements Ltd (SHIVM) at Rs 37.45 million.