KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
In the country’s economic developments, remittances surged to 1.33 trillion rupees in the first 11 months of the fiscal year, marking a robust 22.7 percent increase from the previous year.
This growth, accompanied by a 17.3 percent rise in remittances in US dollars to 9.98 billion dollars, underscores the vital role of migrant workers in supporting Nepal’s economy amid global uncertainties.
Concurrently, the Nepal Stock Exchange (NEPSE) index rose by 23.25 points to 2,175.40, with gains observed across sectors like insurance, microfinance, hotels, and manufacturing, although Buddha Bhumi Nepal Hydropower Company saw a decline.
Trading was active, totaling 15.2 million shares valued at 5.74 billion rupees. Meanwhile, Nepal’s gold market remained stable, with gold prices steady at Rs 144,100 per tola, while silver prices saw a slight decrease.
In regulatory news, SEBON halted Reliance Spinning Mills’ IPO following allegations of misleading financial disclosures, prompting parliamentary scrutiny and a suspension of the IPO issuance process.
Nepal’s remittances surge to Rs 1.33 trillion
In the first 11 months of the current fiscal year, Nepal received 1.33 trillion rupees in remittances, marking a significant 22.7 percent increase from the previous year.
This surge, accompanied by a 17.3 percent rise in remittances in US dollars to 9.98 billion dollars, underscores the crucial role of migrant workers in bolstering Nepal’s economy.
Despite global economic uncertainties, the steady flow of remittances has contributed to household incomes and overall economic stability.
The Nepal Rastra Bank’s report also highlights continued interest in foreign employment, with substantial numbers of new labor approvals, reflecting the ongoing importance of remittances in Nepal’s economic landscape.
NEPSE index gains 23 points, trading hits Rs 5.74 billion
The Nepal Stock Exchange (NEPSE) index on Wednesday surged by 23.25 points to close at 2,175.40, marking a continued upward trajectory in the market.
All sectors, except for development banks, witnessed gains, with notable increases seen in insurance, microfinance, hotel, and manufacturing sectors. Balefi Hydropower Company shares notably rose by 10 percent, while shares of three other companies increased by more than 8 percent.
Conversely, Buddha Bhumi Nepal Hydropower Company saw a decline of 10 percent despite the overall market rise.
Trading activity was robust, involving 322 companies and totaling 15.2 million shares valued at Rs 5.74 billion.
Steady gold prices and marginal decline in silver
The Nepal gold market demonstrated stability with the Nepal Gold and Silver Dealers’ Association reporting prices of Rs 144,100 per tola for fine gold and Rs 143,400 per tola for standard gold on Wednesday.
This consistency reflects ongoing market sentiment and consumer behavior towards precious metals in the region, highlighting gold’s role as a preferred asset for stability and wealth preservation amid global economic uncertainties.
Conversely, silver prices saw a marginal decrease of Rs 15 per tola, settling at Rs 1,870 per tola. This slight decline underscores evolving demands within the precious metals sector, potentially influenced by varied industrial and consumer needs.
Overall, the steady gold prices and modest decrease in silver prices offer a comprehensive view of Nepal’s current economic landscape, illustrating the resilience and strategic importance of precious metals amidst dynamic market conditions.
SEBON halts Reliance Spinning Mills IPO
SEBON has halted Reliance Spinning Mills’ IPO issuance following criticism and pressure from Nepal’s parliamentary Public Accounts Committee.
The company faced allegations of submitting fake financial details and not disclosing significant dues, prompting SEBON to stop the IPO process despite earlier approval to issue shares at Rs 820.80 per unit.
The parliamentary committee has demanded clarification from SEBON on issues including the IPO pricing process and financial statement integrity.
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