KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Private sector calls for increased government spending to spur economic growth
Nepal’s private sector has urged the government to target increased capital expenditure in the upcoming budget to support economic growth amidst ongoing challenges.
According to recent data, the combined annual spending of the three tiers of government stands at Rs500 billion, while private sector investment is four times higher, totaling Rs2.5 trillion in national expenditure.
Stakeholders emphasize the need for policies to stimulate private sector investment and address banking sector concerns. Finance Minister Barsha Man Pun has committed to prioritizing private sector confidence through policy reforms, aiming to create an investment-friendly environment and boost economic growth.
NEPSE’s Weekly Performance: Index Declines by 1.64%
The Nepal Stock Exchange (NEPSE) wrapped up the week with a 1.64% loss, closing at 1,966.23 points. This marks a decrease of 33.73 points from the previous week’s close at 1,998.96, where the index had shown a gain of 1.68%.
Throughout the week, the NEPSE Index displayed notable volatility, ranging from a high of 1,998.52 to a low of 1,952.96, representing a fluctuation of 45.56 points. This volatility was slightly lower compared to the previous week, which witnessed a range of 60.6 points.
In terms of trading activity, the week saw a total turnover of Rs 14.49 Arba, with the highest intraday loss occurring on Sunday, amounting to 24.59 points and a turnover of Rs 3.79 Arba.
From a technical standpoint, the Relative Strength Index (RSI) for the daily timeframe stood at 40.56, while the RSI reading on the weekly chart was slightly higher at 45.59.
Gold prices rise, silver remains stable
The recent surge in gold prices by Rs 2,300 per tola in Nepal’s domestic market reflects a complex interplay of global economic conditions, local market dynamics, and investor sentiment.
Factors such as inflation rates, currency fluctuations, and geopolitical tensions influence gold prices globally, while domestic factors like demand-supply dynamics and government regulations impact pricing locally.
The stability of silver prices amidst the gold surge suggests differing market dynamics for these precious metals. Investor sentiment and speculation also contribute to price fluctuations, with traders closely monitoring economic indicators and news events.
Understanding these multifaceted factors is crucial for investors, policymakers, and market participants to navigate and anticipate trends in precious metal prices effectively.
Unilever Nepal Limited reports robust Q3 Financial Performance
Unilever Nepal Limited (UNL) unveiled its financial results for the third quarter of the fiscal year 2080/81, demonstrating a substantial 30.46% increase in net profit.
The company’s net profit surged to Rs. 48.61 crores, up from Rs. 37.26 crores in Q3 of FY 2080-81.
Additionally, UNL’s revenue for the same quarter saw a modest uptick of 1.52%, reaching Rs. 1.99 Arba.
Notably, other incomes experienced a remarkable 27.97% rise, amounting to Rs. 7.32 crores during the period.
Alternative road in Lo Manthang-Nechung segment to boost regional infrastructure
An alternative road has been completed in the Lo Manthang-Nechung segment of the Beni-Jomsom-Korala National Highway as part of the ‘One Constituency, One Strategically Important Road’ initiative by the Gandaki Province Government.
The 10.5 km road, initially budgeted at Rs. 211.7 million, underwent upgrades including extension, drainage improvement, wall construction, and gravel surfacing, with a final cost of Rs. 240 million due to variation orders.
This road enhances connectivity for residents, tourists, and businesses, serving as an alternative route to the national highway and easing transportation and trade between Lo Manthang and the Korala border point.
Plans are underway to upgrade additional sections, including the Charang-Choser segment and the road from Lo Manthang to Kimling via Puwa, demonstrating ongoing efforts to enhance infrastructure in the region.
(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.
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