NEPSE index surges following coalition agreement

KATHMANDU: Nepal Stock Exchange (NEPSE) index witnessed a significant boost after the agreement between two major political parties in the Federal Parliament, Nepali Congress (NC) and CPN (UML), to form a new coalition government. 

During today's trading, the index surged by 4% within the first minute, leading to 20-minute trading halt. Subsequently, when the index increased by 5% after trading resumed at 11:21 am, second 40-minute halt was implemented.

NEPSE spokesperson Murahari Parajuli attributed this market movement to the changing political landscape. While emphasising that there should be no drastic impact on the share market, he acknowledged that investor sentiment might be influenced by the recent government transition. 

The NC and CPN (UML) have reportedly formed a new alliance to establish a government and propose constitutional amendments. Top leaders from both parties finalised the agreement last night, although the draft remains undisclosed.

According to an NC central leader, "The agreement, reached after extensive discussions and deliberations, was signed by NC President and former Prime Minister Sher Bahadur Deuba and CPN (UML) Chairperson and former Prime Minister KP Sharma Oli.

As part of the agreement, Constitution Amendment Recommendation Commission will be established to address electoral system reforms. Meanwhile, the parties plan to engage in internal discussions and allocate ministerial portfolios for the new government.