KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
NEPSE index hits record high with Rs. 21.91 billion turnover
The NEPSE Index on Wednesday experienced a notable surge, closing at 2,760.90 points, marking an increase of 2.38% from the previous day. This rise follows a gain from the prior session, indicating a strong upward momentum.
Trading activity was particularly vigorous, with the index reaching a high of 2,791.02 points before settling slightly lower. The day’s trading featured a high level of activity, with a record turnover of Rs. 21.91 billion— the highest ever in NEPSE’s history.
This was achieved through the trading of 50,967,951 shares across 238,272 transactions involving 332 different stocks.
The trading session’s dynamics, including the significant turnover and the index’s fluctuation between a low and high point, reflect a highly active and potentially bullish market environment.
The record turnover suggests that investor confidence and market interest are currently high, contributing to a robust trading atmosphere.
MCA-Nepal completes signing of all three 400 kV substations
The Millennium Challenge Account – Nepal (MCA-Nepal) signed the final substation contract with Techno Electric and Engineering Company Ltd. (TEECL), India to construct a US$ 38.89 million 400 kV substation in Damauli, Tanahun district.
With this, MCA-Nepal has completed the award of contracts for the construction of all three 400 kV substations as part of implementing the MCA-Nepal Compact.
Once completed, the New Damauli Substation will have a capacity of 1000 Mega Volt Ampere, making it one of the largest substations in the country along with the Ratmate Substation for which the MCA-Nepal signed a contract with the same company in June 2024, it said.
The New Damauli Substation will serve as a critical point of connection for power flow with the Ratmate, Lekhnath and New Butwal Substations.
Gold prices surge in domestic market; fine gold traded at Rs 147,800
The domestic market on Wednesday witnessed a notable increase in gold prices, rising by Rs 1,800 per tola. The Nepal Gold and Silver Dealers’ Association reported that fine gold had reached Rs 147,800 per tola, while standard gold was trading at Rs 147,100 per tola.
This represented a significant increase from Tuesday, when fine gold was priced at Rs 146,000 per tola and standard gold at Rs 145,000 per tola.
Additionally, silver prices remained unchanged at Rs 1,780 per tola.
This surge in gold prices likely indicated shifts in market conditions or external influences affecting the precious metals sector.
Dhangadhi Transport Office reports Rs 653.1 million in revenue for fiscal year 2080/81 BS
In the fiscal year 2080/81 BS, the Dhangadhi Office of Transport Management reported a revenue collection of Rs 653.1 million, marking an increase from Rs 639.4 million collected in the previous year.
Acting Chief Narendra Shah highlighted that the bulk of this revenue stemmed from vehicle taxes, amounting to nearly Rs 498 million.
Conversely, administrative service fees contributed the least to the total revenue.
Additionally, Rs 142.7 million was garnered from driving licenses and vehicle registration fees, while Rs 11.7 million was collected from route permits and pollution tests.
The office’s revenue collection increased by Rs 13.7 million compared to the last fiscal year.
Nepal’s gold imports rise to Rs 23.5 billion last fiscal year
In the last fiscal year, Nepal imported gold valued at Rs 23.5 billion, a 5.81 percent increase from the previous year.
The country brought in 1,600 kg of gold, down 9.07% from the 2,651 kg imported the year before.
This rise in expenditure, driven by higher gold prices—peaking at Rs 149,800 per tola—has led to a significant outflow of foreign currency.
Gold imports primarily came from the UAE (2,500 kg for Rs 22.26 billion), Turkey (150 kg for Rs 1.395 billion), and smaller amounts from India, Switzerland, and Uzbekistan.
The government has delegated gold importation to commercial banks, which import 20 kg daily. Revenue from gold imports increased by 43.72% to Rs 3.64 billion.
NRB’s foreign employment saving bonds struggle with 4.9% sales over 13 years Nepal Rastra Bank (NRB) launched foreign employment saving bonds (FESB) 13 years ago to channel remittances into productive investments, but has seen minimal success in attracting migrant workers.
A recent NRB report reveals that only 4.9% of FESBs issued have been sold over the decade, with only Rs 762.3 million worth out of Rs 15.56 billion called for applications being subscribed.
Despite offering returns slightly above bank fixed deposits and other development bonds, sales have been lackluster since the start, with initial subscriptions as low as 0.40% of Rs 1 billion in the first year.
Factors such as poor information dissemination, complex purchasing processes, and lengthy loan procedures have been identified as barriers.
The report recommends policy and procedural reforms, increased publicity, a paperless issuance system, and allowing access to funds from abroad to boost investment in FESBs.
Foreign currency exchange rates
The Nepal Rastra Bank (NRB) has set the foreign currency exchange rates for today (Thursday).
The exchange rates for the US dollar, Qatari riyal, and British pound decreased, while the exchange rate for the euro increased to a standard value.
According to NRB, the buying rate for one US dollar is 133 rupees 66 paisa, and the selling rate is 134 rupees 26 paisa.
Similarly, the buying rate for one euro is 144 rupees 83 paisa, and the selling rate is 145 rupees 48 paisa.
The buying rate for one British pound has reached 171 rupees 70 paisa, with the selling rate at 172 rupees 47 paisa.
According to the Nepal Rastra Bank, the buying rate for one Qatari riyal is 36 rupees 64 paisa, and the selling rate is 36 rupees 81 paisa.
(Compiled and prepared by Srija Khanal)
Economic Digest is a daily morning economic digest, basically relatable summations of the most important business news, and happenings from Nepal into easy-to-understand summaries.
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