Economic Digest: Nepal’s Business News in a Snap « Khabarhub
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Economic Digest: Nepal’s Business News in a Snap

10 July 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 Nepal Stock Exchange (NEPSE) surged by 15.79 points amid active trading, totaling 1.17 billion shares exchanged. This positive movement saw 168 companies’ stocks rise while 68 recorded declines, with the day’s transactions amounting to Rs 5.53 billion.

The microfinance sector stood out as a strong performer during this session, underscoring sector-specific trends influencing investor sentiment in Nepal’s equity market.

In parallel, the domestic gold market in Nepal witnessed a significant decline, with prices dropping by Rs 900 per tola. Fine gold was priced at Rs 144,100 per tola, and standard gold at Rs 143,400 per tola. This adjustment reflects broader fluctuations in global markets and local demand dynamics for precious metals.

Meanwhile, Kathmandu’s commercial landscape is showing signs of strain, with many once-bustling markets and shopping malls now dotted with ‘to-let’ signs.

This downturn highlights economic challenges faced by businesses in attracting customers, marking a notable shift from the city’s previously vibrant commerce environment.

NEPSE surges by double digits, gains 15.79 points

On Tuesday, the Nepal Stock Exchange (NEPSE) experienced a positive movement, gaining 15.79 points amid a transaction volume totaling 1 crore 16 lakh 61 thousand 208 shares.

During the trading session, 168 companies saw an uptick in their share prices, whereas 68 companies recorded declines. The total transaction value on NEPSE amounted to Rs 5.53 billion, with share prices of 10 companies holding steady.

Notably, investors in the microfinance sector emerged as the primary beneficiaries of Tuesday’s stock market activity on NEPSE.

This highlights sector-specific trends influencing market performance and investor sentiment, underscoring the dynamic nature of equity trading in Nepal.

Gold price down by Rs 900 per tola today

On Tuesday, the domestic gold market in Nepal witnessed a decrease of Rs 900 per tola, as reported by the Nepal Gold and Silver Dealers’ Association. This adjustment positioned the price of fine gold at Rs 144,100 per tola, while standard gold was quoted at Rs 143,400 per tola.

This price movement reflected ongoing fluctuations in the global and regional markets, influenced by factors such as international gold prices, currency exchange rates, and local demand dynamics.

The reduction in gold prices could have been attributed to changes in global economic conditions, investor sentiment, or adjustments in import costs. The stability in silver prices amidst the gold decrease suggested differing market dynamics and investor preferences, highlighting the nuanced nature of precious metal pricing and market reactions.

Bangladesh invites Nepal for 40 MW electricity trade deal

The Bangladesh Power Development Board has formally invited Nepal to finalize a trade agreement for purchasing 40 megawatts of electricity, with the Nepal Electricity Authority (NEA) receiving a letter to this effect. Bangladesh intends to import electricity generated in Nepal during the monsoon season for six months each year.

NEA’s Executive Director, Kulman Ghising, has confirmed the completion of all necessary procedures, clearing the path for electricity exports to begin within the current year.

Under the terms of the agreement, Nepal will supply Bangladesh with 40 megawatts annually from June 15th to November 15th for the next five years. NEA anticipates earning 6.40 cents per unit once the export commences.

Decline of Kathmandu’s markets signals economic strain

Kathmandu’s once vibrant markets and shopping malls are facing a sharp decline, with ‘to-let’ signs replacing bustling storefronts. The city’s business districts now feature numerous vacant spaces as businesses struggle to attract customers.

From small shops to grand malls, the landscape reflects a significant downturn, marking a stark contrast to the lively commerce that once defined the capital.

Foreign currency exchange rates

The Nepal Rastra Bank (NRB) has set today’s foreign currency exchange rates, showing a decrease in the values of the US Dollar, Euro, and British Pound against the Nepalese Rupee.

The US Dollar’s buying rate stands at 133 rupees 28 paisa with a selling rate of 133 rupees 88 paisa, while the Euro is valued at 144 rupees 17 paisa (buying) and 144 rupees 82 paisa (selling).

The British Pound’s rates are 170 rupees 65 paisa (buying) and 171 rupees 42 paisa (selling). Conversely, the Qatari Riyal remained stable with a buying rate of 36 rupees 55 paisa and a selling rate of 36 rupees 71 paisa.

These rates reflect a current trend of depreciation for major currencies against the Nepalese Rupee, influenced by global economic factors and local market conditions monitored by the NRB.

(Compiled and prepared by Srija Khanal)

Economic Digest is a daily morning economic digest, basically relatable summations of the most important business news, and happenings from Nepal into easy-to-understand summaries.

Publish Date : 10 July 2024 08:47 AM

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