KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The Nepal Stock Exchange (NEPSE) dropped 53.63 points to close at 2,695.93, with trading turnover declining to Rs 10.51 billion.
The sensitive index for ‘A’ class companies fell by 8.91 points, and mutual funds saw modest gains while other sectors, particularly hotels and tourism, experienced significant losses.
Goodwill Finance Limited led in turnover, and several hydropower companies saw market value decreases.
Meanwhile, Nepal Rastra Bank’s flexible monetary policy is supporting economic recovery, enhancing liquidity, and promoting eco-friendly transport.
Gold and silver prices also fell on the week’s first trading day, reflecting potential shifts in market conditions.
Additionally, a new study highlights Nepal’s significant untapped biomass potential, which could reduce emissions and contribute to energy needs if managed effectively.
NEPSE plunges 53.63 points; trading activity and turnover decline
On Sunday, the Nepal Stock Exchange (NEPSE) plunged 53.63 points to close at 2,695.93.
After opening at 2,749.57 and briefly peaking at 2,781.71, the index fell steadily, hitting a low of 2,687.54 before recovering slightly.
The sensitive index, tracking ‘A’ class companies, dropped by 8.91 points. Daily turnover fell to Rs 10.51 billion from Rs 12.24 billion.
Of the 240 listed companies, 31 gained while 209 lost. Mutual funds were the sole gainers with a slight increase of 0.17 points, while hotels and tourism led the decliners with a 213.34-point drop.
Goodwill Finance Limited recorded the highest turnover at Rs 523.11 million, and Peoples Hydropower Company Limited and Mai Khola Hydropower Limited saw a 10% decrease in market value, while Super Mai Hydropower Limited emerged as the top gainer.
Nepal Rastra Bank’s flexible monetary policy boosts economic recovery
Deputy Governor Bam Bahadur Mishra of Nepal Rastra Bank highlighted that the current flexible monetary policy is aiding economic recovery by increasing liquidity in banks and revitalizing the automobile and stock markets.
Speaking at the NADA Auto Show 2024, Mishra emphasized the policy’s role in boosting market activity and promoting electric vehicles.
Sunil KC from the Nepal Bankers Association and Upendra Paudel from the Confederation of Banks and Financial Institutions stressed support for eco-friendly transport and reducing petroleum imports.
Karan Kumar Chaudhary of the Nepal Automobiles’ Association assured that expanded charging infrastructure will meet growing demand.
Nepalese gold and silver prices drop on week’s first trading day
On the first trading day of the week, Nepalese gold and silver prices saw significant declines, with gold dropping by NPR 600 per tola to NPR 152,300, down from NPR 152,900 on Friday, and silver falling by NPR 25 per tola to NPR 1,795.
These decreases suggest a shift in market conditions, potentially driven by changes in global commodity trends, investor sentiment, or domestic economic factors.
The decline in gold, a traditional safe-haven asset, could indicate reduced demand or adjustments in international markets, while the drop in silver might reflect weakened industrial demand or broader market shifts.
These trends highlight the importance for investors and stakeholders to monitor global and local economic indicators closely.
Study highlights Nepal’s untapped biomass potential for reducing emissions and enhancing energy supply
A new study reveals Nepal’s substantial biomass potential, which could greatly benefit the economy if effectively managed.
The research, titled ‘Possibilities and Challenges for Converting Waste Biomass into Fuel, Feed, and Fertiliser in Nepal,’ estimates that harnessing biomass could cut CO2 emissions by up to 52% and fulfill 12% of current energy needs.
Currently, much of Nepal’s waste biomass is used inefficiently, such as for kitchen fuel or animal feed, while improper disposal methods like open burning harm the environment.
The study identifies about 89 million tonnes of annual biomass from various sources, suggesting it could produce significant amounts of pellets, feed blocks, biogas, and fertiliser.
However, challenges such as inadequate data, poor waste management practices, and infrastructural limitations need to be addressed to fully exploit this potential and support sustainable economic development.
Forex: US dollar steady, major currencies drop
The Nepal Rastra Bank (NRB) has announced today’s (Monday) foreign currency exchange rates. Most foreign currencies, including the Australian Dollar, Euro, Pound, and Bahraini Dinar, have depreciated.
The US Dollar’s rates remain unchanged: buying at 133.89 rupees and selling at 134.49 rupees.
The Euro’s rates have slightly decreased, with the buying rate at 147.91 rupees and the selling rate at 148.58 rupees.
The British Pound’s rates are lower today, with a buying rate of 175.80 rupees and a selling rate of 176.59 rupees.
The Australian Dollar has also depreciated, with buying and selling rates set at 90.57 rupees and 90.98 rupees, respectively.
(Prepared by Srija Khanal)
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