Kathmandu- The stock market closed at 12 PM after experiencing multiple positive circuit breakers during its first trading session following the House of Representatives election.

The Nepal Stock Exchange (NEPSE) surged by 162.93 points, closing at 2,875.43. However, the daily turnover was limited to Rs 555.9 million after the third circuit breaker.

The market surged within the first minute of opening, triggering the circuit breaker. Trading was halted for 20 minutes after the circuit breaker was activated. The market halted again within seconds after the second circuit breaker. The NEPSE hit the positive circuit breaker for the third time after a 40-minute halt.

A circuit breaker is triggered if the market rises or falls by 4 percent within the first hour of trading. Once triggered, the market enters a 20-minute halt.

This mechanism pauses trading when the market experiences sharp upward or downward movements. It protects investors from sudden volatility.

Under the rule, a circuit breaker is triggered if the market changes by 4 percent between 11 am and 12 pm, 5 percent between 12 pm and 1 pm, and 6 percent after that period.

The first circuit breaker was triggered after the market gained 108.60 points and reached 2,821.10 points.

Investors appear confident about a stable government, as the election results indicate that the Rastriya Swatantra Party is moving close to securing a two-thirds majority.