KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
On Wednesday, the Nepal Stock Exchange (NEPSE) saw a notable rise of 108.35 points, closing at 2,759.67, a 4.08% increase following a recent decline.
Trading volume reached 38 million shares with a turnover of Rs. 17.95 billion.
In other news, gold prices fell by Rs 1,400 per tola to Rs 146,300, while silver prices remained unchanged.
Indian TV networks suspended broadcasts in Nepal due to a payment dispute, impacting local viewers.
Additionally, heavy rains have disrupted the Khimti-Dhalkebar transmission line, reducing power supply and exports.
Meanwhile, the World Bank approved $100 million to improve Nepal’s provincial road network, aiming to enhance infrastructure and connectivity.
NEPSE closes session with impressive 108.35 points surge
The Nepal Stock Exchange (NEPSE) Index on Wednesday wrapped up at 2,759.67 points, marking a substantial increase of 108.35 points or 4.08% from the previous trading day.
This rise followed a drop of 145.05 points in the last session.
The index opened the trading day at 2,644.73 points, hitting a low of 2,630.86 points and a high of 2,759.67 points before closing at its peak of 2,759.67 points.
During the session, 330 scrips were traded through 212,681 transactions, resulting in a notable volume of 38,041,267 shares and a turnover of Rs. 17.95 billion.
The market capitalization for the day was Rs. 4.38 trillion, while the float market capitalization was Rs. 1.49 trillion.
Gold prices fall by Rs 1,400 per tola
Gold prices on Wednesday dropped by Rs 1,400 per tola, bringing the rate down to Rs 146,300 per tola, according to the Nepal Gold and Silver Dealers’ Association.
This decrease followed a previous rate of Rs 147,700 per tola. In contrast, the price of silver remained stable at Rs 1,710 per tola.
The reduction in gold prices likely reflected changes in market conditions, such as shifts in global demand, investor behavior, or currency fluctuations, while the stability in silver prices indicated differing trends within the precious metals market.
Indian TV networks suspend broadcasts in Nepal over payment dispute
Indian television networks, including Star, Sony, Zee, and Colors, have halted broadcasts in Nepal over the past week due to unresolved payment issues with Nepali cable service providers, who owe around Rs 1 billion.
The disruption is partly due to Nepali service providers’ failure to comply with the government’s ‘À la carte’ pricing system, which allows consumers to select and pay for individual channels.
The Ministry of Communication and Information Technology has ceased recommending foreign exchange for these payments after the Indian companies refused to follow the new pricing regulations. Local distributors Net TV and Mega Max Digital, responsible for distributing these channels, are caught in the middle of the payment dispute.
The situation highlights the ongoing debate over bundling versus unbundling internet and television services in Nepal.
Heavy rain disrupts Khimti-Dhalkebar transmission line
Heavy rainfall since 6:30 PM on Monday has disrupted the Khimti-Dhalkebar 220 KV transmission line, causing a circuit wire to fall and halting repair efforts.
This has led to a 300 MW reduction in power supply and impacted electricity exports.
The Nepal Electricity Authority (NEA) has been exporting up to 690 MW of power to India, but the ongoing rain has exacerbated the situation, further decreasing export levels.
World Bank grants $100 million to improve Nepal’s provincial road network
The World Bank has approved $100 million in aid for Nepal’s Provincial and Local Road Network Improvement Program.
This funding, provided by the International Development Association (IDA), will enhance local road infrastructure across Sudurpaschim, Karnali, and Madhesh provinces.
The first phase of the project aims to construct and upgrade 3,000 kilometers of roads, benefiting around one million people.
The initiative is expected to boost connectivity, efficiency, and safety, while also strengthening local government capabilities in road and bridge management.
The agreement was signed recently by Nepal’s Finance Secretary, Dr. Ram Prasad Ghimire, and World Bank Country Director David Sislen.
US dollar continues to rise in value
Nepal Rastra Bank (NRB) has updated today’s foreign currency exchange rates, with the US dollar reaching a new record high at NPR 134.04 for buying and NPR 134.64 for selling.
Other currencies have seen slight increases: the European Euro is at NPR 146.39 (buying) and NPR 147.05 (selling), the British pound at NPR 170.68 (buying) and NPR 171.44 (selling), the Australian dollar at NPR 88.10 (buying) and NPR 88.49 (selling), the Kuwaiti dinar at NPR 438.14 (buying) and NPR 440.10 (selling), and the Bahraini dinar at NPR 355.58 (buying) and NPR 357.17 (selling).
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