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) declined by 0.93% to 2701.90 points amid mixed sector performance, with development banks falling the most and microfinance leading growth.
New legislation has introduced prison sentences and fines for cheque dishonor to improve fund recovery and credibility, with penalties varying based on cheque amounts.
The Chilime-Trishuli 220 KV transmission line is nearing completion and expected to be operational before Dashain, linking major hydroelectric projects to the national grid.
Precious metal prices in Nepal fell, with gold down to 152,100 rupees per tola and silver to 1,750 rupees per tola, reflecting a broader market adjustment.
To manage excess liquidity, the Nepal Rastra Bank plans to withdraw Rs 100 billion from the banking system, following recent maturity and issuance of similar instruments.
NEPSE declines by 0.93% amid mixed sector performance
The Nepal Stock Exchange (NEPSE) started the week with a decline, dropping 25.46 points or 0.93% to end at 2701.90.
The market initially showed promise with a 5-point gain pre-open but failed to sustain momentum, peaking at 2760 points before falling to 2697.
Total trading volume reached 112,300 shares, equating to over Rs 10 billion in turnover.
Among 328 traded companies, 85 saw price increases, 157 experienced declines, and 3 remained unchanged.
Sector-wise, the development bank group faced the steepest decline at 2.07%, while the microfinance group saw the highest growth at 1.21%.
Other sectors showing notable improvements included commercial banks (+1.58%), finance (+1.24%), and hotel and tourism (+1.41%), indicating a mixed but generally positive trend across various industries despite the overall market dip.
New legislation sets jail time and fines for cheque dishonor
New legislation mandates imprisonment for cheque dishonor ranging from one month to two years, based on the cheque amount.
Under the Banking Offenses and Punishment (Second Amendment) Bill, 2080, cheques up to Rs 15 lakhs will incur one month of imprisonment, and those up to Rs 50 lakhs will result in three months of imprisonment, with a 5% fine on the cheque amount.
The Finance Committee of the House of Representatives, led by Santosh Chalise, aims to enhance fund recovery and check credibility.
Deputy Prime Minister Bishnu Paudel supports these stricter penalties, while MP Surya Thapa advocates for standardized compensation, MP Dr. Prakash Sharan Mahat backs combining imprisonment with fines, and MP Dr. Swarnim Wagle calls for harsher penalties for cheques over Rs one crore.
Chilime-Trishuli transmission line nears completion, set to power up before Dashain
The Chilime-Trishuli 220 KV transmission line, crucial for linking Trishuli River hydroelectric projects to the national grid, is nearing completion.
The final phase involves finishing the 28 km stretch from Chilime Hub Substation in Rasuwa to Trishuli 3B Hub Substation in Nuwakot. With 75 of 76 towers erected and 5 km of line remaining, completion is targeted before Dashain.
Nepal Electricity Authority officials, including Executive Director Kulman Ghising, have stressed the importance of meeting this deadline.
The line will transmit power from the 111 MW Rasuwagadhi and 42.5 MW Sanjen projects. Despite challenging terrain and logistical issues, significant progress has been made, including over 20 km of access roads and use of drone technology for the Mailungkhol section.
Future plans include adding a multi-circuit line for the 216 MW Upper Trishuli-1 project, with funding covered partly by the project’s own contributions.
Gold and silver prices decline on Nepalese market amidst market adjustment
On Sunday, gold prices in Nepal fell by 1,200 rupees to 152,100 rupees per tola, marking a significant drop from Friday’s peak of 153,300 rupees.
This decline suggests a weakening in market demand or an adjustment following recent highs. Silver prices also decreased, down by 45 rupees to 1,750 rupees per tola.
The simultaneous reduction in both metals indicates a broader trend affecting precious metals, potentially driven by shifts in market sentiment or external economic factors.
This decline could reflect reduced investor confidence or adjustments in response to fluctuating global commodity markets.
NRB to withdraw Rs 100 billion in liquidity to manage excess funds
To address excess liquidity, the Nepal Rastra Bank (NRB) plans to withdraw Rs 100 billion from the banking system on Sunday via a bidding instrument.
This follows the maturity of a previous Rs 100 billion instrument from August 18, with a new Rs 100 billion instrument being issued for 21 days.
The NRB had earlier issued Rs 40 billion instruments on August 28 and September 4, mopping Rs 22.2 billion and Rs 37.8 billion, respectively.
Since the fiscal year’s start, the NRB has withdrawn Rs 246.4 billion through deposit tools, with Rs 158.6 billion still outstanding.
Additionally, Rs 5.675 trillion has been mopped under the Standing Deposit Facility (SDF), with Rs 120.15 billion remaining.
(Prepared by Srija Khanal)
Comment