Stock market jumps due to change of government

The news of a government change in Nepal has led to a significant surge in the stock market. Following the agreement between CPN-UML and Nepali Congress to form a coalition government, the NEPSE index saw a sharp rise on Tuesday.

In the stock market operating under a circular system, the NEPSE index increased by 5% within the first minute, triggering the first circuit breaker, which halted trading for 40 minutes. When trading resumed, the NEPSE index rose by another 4% in the second minute, triggering the second circuit breaker, which paused trading for an additional 20 minutes.

Key points:

- Government Formation Agreement: CPN-UML and Nepali Congress have agreed to form a coalition government.

- Stock Market Surge: The NEPSE index saw a sharp rise on Tuesday.

- In the first minute, the NEPSE index increased by 5%, triggering the first circuit breaker and halting trading for 40 minutes.

- In the second minute after reopening, the NEPSE index increased by another 4%, triggering the second circuit breaker and halting trading for 20 minutes.

- Potential Finance Minister Bishnu Poudel: Investors are excited about the possibility of Bishnu Poudel, who is favored by investors, becoming the finance minister.

- Details of the Agreement:

- In the first phase, the government will be led by CPN-UML Chairman KP Sharma Oli.

- In the second phase, leadership will be taken over by Congress President Sher Bahadur Deuba.

- CPN-UML will take the finance ministry along with 8 other ministries, while Congress will take the home ministry along with 9 other ministries.

- Possibility of Bishnu Poudel as Finance Minister: The likelihood of Bishnu Poudel becoming the finance minister has increased after the agreement.

- CPN-UML Secretariat Meeting: A meeting has been called this afternoon to discuss issues including the power-sharing arrangement.