Nepal Stock Exchange (NEPSE)
imposed a circuit breaker on
share transactions of Nepal
Credit and Commerce (NCC)
Bank, suspending the bank's
stock trading until further
notice. Rewat Bahadur Karki,
general manager of NEPSE
informed the Post that NEPSE
was compelled to take the
step after the bank's share
price fell by 10 percent
during today's transaction.
The stock exchange also
asked for an explanation
from NCC Bank on whether it
had taken any action to
cause its share prices to
fall. “We will resume its
trading once the bank's
management replies,” Karki
said. The NEPSE can impose
circuit breaker on any
listed company as a measure
to avoid volatile situation
in the stock market, if
share price of any company
rises or falls by over 10
percent in a single day's
trading. Before the
imposition of circuit
breaker, NCC Bank's share
price plummeted by Rs 25 per
share to Rs 231. The stock
market experienced a steady
loss of 7.22 points on
Monday, as banks' shares
continued to fall. The NEPSE
ended at 512.70 points.