Thursday, October 10th, 2024

Economic Digest: Nepal’s Business News in a Snap


06 September 2024  

Time taken to read : 6 Minute


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KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.

The NEPSE Index on Thursday fell by 12.10 points, or 0.44%, to 2,727.36 on Thursday, following a significant drop of 90.73 points the previous day, totaling a 102.83-point decline over two days.

The index showed high volatility, trading between 2,758.92 and 2,686.62 points. Despite high trading activity with a turnover of Rs. 9.65 billion, marking the first drop below Rs. 10 billion in 32 days, both market and float capitalizations fell, indicating potential market contraction.

Meanwhile, gold prices remained steady at Rs 152,000 per tola for four days, while silver prices rose to Rs 1,765 per tola.

Additionally, Kathmandu Metropolitan City (KMC) has requested the Central Investigation Bureau (CIB) to investigate seven cooperatives due to issues uncovered in a review.

Meanwhile, large cardamom prices surged to Rs 2,100 per kg in Jhapa, driven by increased demand as festivals approach, despite lower yields this year.

NEPSE Index slips 12.10 points

The Nepal Stock Exchange (NEPSE) Index on Thursday experienced a decline of 12.10 points, or 0.44%, closing at 2,727.36 points. This decrease follows a significant drop of 90.73 points the previous day, culminating in a total reduction of 102.83 points over the last two trading days.

Throughout the session, the index displayed considerable volatility, starting at 2,740.21 points. It fluctuated between an intraday high of 2,758.92 points and a low of 2,686.62 points before settling at 2,727.36 points.

Trading activity was notably high, with 316 stocks being traded through 112,692 transactions. The total volume of shares traded was 20,153,993, leading to a turnover of Rs. 9.65 billion. This marks a notable shift, as turnover has dropped below Rs. 10 billion for the first time in 32 trading days.

The market capitalization stood at Rs. 4.33 trillion, while the float market capitalization was Rs. 1.52 trillion. The decline in both the index and turnover suggests a period of market contraction, reflecting possible investor uncertainty or reduced market confidence.

Gold prices steady for four days

Gold prices remained stable for the past four days, holding steady at Rs 152,000 per tola since September 2, as reported by the Nepal Gold and Silver Traders Federation.

This consistent price indicates a period of stability in the gold market, with no fluctuations observed during this time.

In contrast, silver prices have seen a recent uptick. Today, the price of silver increased by 10 rupees, bringing its current trading value to 1,765 rupees per tola. This rise suggests a shift in the silver market dynamics, differing from the stability observed in gold prices.

On the international front, gold is trading at 2,496 US dollars per ounce, while silver is priced at 28.26 US dollars per ounce. These international figures provide context for the local prices and may influence future price movements in the domestic market.

Overall, the stagnation in gold prices coupled with the recent increase in silver prices highlights diverging trends within the precious metals market.

KMC urges CIB to investigate seven cooperatives

Kathmandu Metropolitan City (KMC) has called on the Central Investigation Bureau (CIB) of Nepal Police to probe seven cooperatives after a review of 40 cooperatives revealed issues that require further examination.

The cooperatives under investigation include six credit and loan cooperatives and one multi-purpose cooperative.

Specifically, the cooperatives are Sumeru Savings and Credit Cooperative Society Limited, Square Savings and Credit Cooperative Society Limited, Rural Development Savings and Credit Cooperative Society Limited, Satkar Savings and Credit Cooperative Society Limited, Mahabauddha Savings and Credit Cooperative Society Limited, Namo Harati Savings and Credit Cooperative Society Limited, and Basic Multi-Purpose Cooperative Society Limited.

Forex: US dollar soars in value

Nepal Rastra Bank (NRB) has announced the foreign currency exchange rates for today (Friday).

The US dollar has reached its highest ever value, with a buying rate of NPR 134.08 and a selling rate of NPR 134.68. This is up from NPR 134.05 and NPR 134.65 yesterday.

The Euro and British Pound Sterling have also increased in value, with today’s buying and selling rates for the Euro at NPR 148.93 and NPR 149.60, respectively (up from NPR 148.16 and NPR 148.82 yesterday), and for the Pound Sterling at NPR 176.64 and NPR 177.43 (up from NPR 175.80 and NPR 176.59).

The Australian Dollar has slightly increased to NPR 90.24 (buying) and NPR 90.65 (selling), compared to NPR 90.09 and NPR 90.49 yesterday.

The rates for the Saudi Arabian Riyal and Qatari Riyal remain unchanged from yesterday.

(Prepared by Srija Khanal)

Publish Date : 06 September 2024 08:49 AM

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