KATHMANDU: The Nepal Stock Exchange (NEPSE) witnessed intense volatility on Wednesday, driven by investor reaction to the appointment of a new central bank governor. Initial optimism sent the index soaring, but it later retreated, ending the day slightly lower.

The market opened on a strong note, fueled by expectations that Dr. Biswo Poudel’s official appointment as Governor of Nepal Rastra Bank would inject new energy into the financial system. Within the first three minutes of trading, the NEPSE index jumped by nearly 94 points, hitting an intraday high of 2,771 points.

As the index neared the 4 percent gain threshold—at which a circuit breaker would be triggered—investors rushed to book profits. The selling pressure reversed early gains, and the index steadily declined throughout the session.

By the close of trading, the index had dropped to 2,669 points, down 102 points from the day’s high and 7.94 points lower than Tuesday’s close. Despite the slight fall, the overall sentiment remained cautiously optimistic.

Trading activity surged significantly. The day’s turnover reached Rs 10.69 billion, a substantial rise from Tuesday’s Rs 7.31 billion, indicating robust investor participation amid uncertainty.

Out of the total listed companies, 93 posted gains, 153 declined, and one remained unchanged. Sectoral performance was mixed: banking and development banks registered slight gains, while key sectors such as hydropower, finance, insurance, manufacturing, trading, and microfinance ended in the red.