Thursday, November 7th, 2024

Economic Digest: Nepal’s Business News in a Snap


07 November 2024  

Time taken to read : 5 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 Nepal Stock Exchange (NEPSE) saw a minor dip of 1.88 points, settling at 2,675.51 on Wednesday, continuing its modest downward trend since the Tihar Festival.

The market fluctuated within a narrow range, with a turnover of Rs. 5.22 billion from 11.6 million shares traded across 320 companies.

Despite this slight decline in the index, market capitalization remains robust at Rs. 4.25 trillion.

Meanwhile, gold prices rose by Rs. 300 per tola, reflecting a positive shift in demand, while silver prices declined slightly.

Additionally, TikTok received legal recognition in Nepal, marking a significant regulatory milestone for digital platforms in the country.

On the consumer front, the flower trade during Tihar saw steady demand, with Rs. 500 million in sales, though growth in flower production is lagging behind the increasing demand.

In corporate news, NLG Insurance announced plans to issue a 62.56% rights share, expanding its paid-up capital, which reflects an active corporate sector amidst the market’s slight downturn.

NEPSE edges down slightly to settle at 2,675.51

The Nepal Stock Exchange (NEPSE) on Wednesday ended at 2,675.51 points, marking a slight decline of 1.88 points from the previous day.

Since the Tihar Festival, the index has experienced a minor two-day drop of just 2.09 points.

The session began at 2,679.47, with the index fluctuating between an intraday low of 2,669.19 and a high of 2,684.81.

A total of 11,600,869 shares from 320 companies were traded in 55,238 transactions, resulting in a turnover of Rs. 5.22 billion.

The market capitalization was recorded at Rs. 4.25 trillion, with the float market capitalization at Rs. 1.50 trillion.

Gold price mark slight upward shoft

The price of gold in the Nepali market saw a notable increase on Wednesday, rising by Rs 300 per tola to reach Rs 168,500.

This marks a slight upward shift from the previous day’s price of Rs 168,200.

The rise in gold prices may reflect broader market trends or changes in demand, though further factors such as global gold price fluctuations or local economic conditions could also be influencing this upward movement.

In contrast, the price of silver experienced a decline, dropping by Rs 15 per tola to settle at Rs 2,000.

This decrease in silver’s price suggests a divergence in the market dynamics for these two precious metals, with gold gaining value while silver faces a minor setback.

TikTok gets legal recognition in Nepal

TikTok has officially been listed in Nepal for the first time, marking a significant milestone as it gains legal recognition as a registered social network.

The Ministry of Communication and Information Technology, under the leadership of Joint Secretary and Spokesperson Gajendra Kumar Thakur, confirmed the registration of TikTok on Tuesday.

With this registration, TikTok has attained legal legitimacy in Nepal, ensuring its compliance with local regulations and offering a more structured framework for its operations in the country.

This move reflects Nepal’s efforts to regulate digital platforms and establish clearer guidelines for their presence in the market.

Flowers worth Rs 500 million sold during Tihar festival

During this year’s Tihar festival, the flower trade in Nepal reached an impressive Rs 500 million, with the highest sales recorded in the Kathmandu Valley.

According to Dilip Bade, President of the Floriculture Association of Nepal (FAN), the transaction volume is similar to last year’s, reflecting steady demand. On average, a normal flower garland was priced at Rs 100, making it an affordable yet significant part of the festival’s celebrations.

Despite a consistent annual market growth of 15 to 20 percent, flower production has only increased by 10 percent, signaling a gap between demand and supply, which could pose challenges for future growth in the sector.

NLG Insurance to issue 62.56 percnt rights share

NLG Insurance Company Limited (NLG) has released an offer letter regarding the issuance of its 62.56% rights shares.

As stated in the offer letter, the company will begin accepting applications for its right shares in a ratio of 10:6.256 (62.56%) from 11th Mangsir to 1st Poush, 2081.

The company plans to issue right shares valued at Rs. 96.31 crore, comprising 9,631,220.22 units (in a 1:0.6256 ratio) to its existing shareholders.

Currently, the company’s paid-up capital stands at Rs. 1.53 BILLION. Following the rights issue, the paid-up capital will increase to Rs. 2.50 BILLION.

Laxmi Sunrise Capital Limited has been appointed as the issue manager.

(Prepared by Srija Khanal)

Publish Date : 07 November 2024 08:02 AM

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