Thursday, October 10th, 2024

Economic Digest: Nepal’s Business News in a Snap


12 September 2024  

Time taken to read : 5 Minute


  • A
  • A
  • A

KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.

The NEPSE Index continued its downward trend, falling by 22.73 points (0.86%) to close at 2,610.21, following a previous decline.

The day’s trading saw fluctuations, with the index peaking at 2,651.19 before dropping.

Trading involved 317 companies, with a turnover of Rs 6.85 billion and 15,428,724 shares exchanged.

Meanwhile, the festive season has caused sharp price hikes in essentials due to increased demand and supply disruptions.

In response, the government has waived 50% customs duty on 30,000 metric tons of sugar to prevent shortages.

Nepal Rastra Bank plans to withdraw an additional Rs 40 billion from the banking system to manage liquidity amid economic pressures.

Gold prices hit a record high, reaching Rs 153,400 per tola, while silver prices fell to Rs 1,780 per tola, reflecting changing market dynamics.

NEPSE index slides further with 22.73-point drop

The NEPSE Index maintained its downward trend, decreasing by 22.73 points (0.86%) to end the day at 2,610.21.

This drop follows a previous session’s decline of 13.09 points.

The trading day began with the index at 2,636.30 points, peaked at 2,651.19 points, and then fell to a low of 2,601.91 points before closing at 2,610.21 points.

During the session, 317 companies were involved in 87,036 transactions, generating a total turnover of Rs. 6.85 billion. The volume of shares traded amounted to 15,428,724.

Festive season drives sharp price hikes in essentials amid regulatory lapses

As the festive season approaches, prices for food items and daily essentials have surged significantly due to traders capitalizing on increased demand.

Sugar has jumped from Rs 90 to Rs 150 per kg, while prices for rice, dal, and meat have also risen sharply. Recent heavy rains and transportation disruptions have further inflated vegetable and fruit prices, with onions and garlic seeing up to a 73% increase.

Although broiler chicken and egg prices have stabilized, mutton and cashew nuts have become more expensive.

Govt waives 50% duty on 30,000 metric tons of sugar to prevent festival shortages

To prevent potential sugar shortages ahead of the upcoming festivals, the government has allowed the Salt Trading Corporation (STC) and the Food Management & Trade Company (FMTC) to import a combined total of 30,000 metric tons of sugar with a 50% customs duty waiver.

Minister for Communications and Information Technology, Prithvi Subba Gurung, announced that each organization will receive a 50% duty exemption for importing 15,000 metric tons of sugar. This measure aims to ensure a stable sugar supply for Dashain, Tihar, and Chhath festivals.

NRB to withdraw additional Rs 40 billion for liquidity management

Nepal Rastra Bank (NRB) is set to extract an additional Rs 40 billion from the banking system to manage liquidity through a 21-day bidding process.

This move is part of NRB’s broader strategy to tighten liquidity amidst ongoing economic pressures.

Notably, Rs 121 billion previously withdrawn remains outstanding, indicating that substantial liquidity has already been absorbed from the market.

The central bank’s aggressive liquidity management suggests concerns over inflationary pressures or potential overheating in the financial system.

The effectiveness of this strategy will hinge on market response and the ability of financial institutions to adapt to the reduced liquidity environment.

Gold prices hit record high as silver prices decline

The domestic gold market reached a record high, with prices continuing to escalate.

After increasing by Rs 200 per tola on Wednesday, fine gold surged by an additional Rs 1,000 per tola, hitting an unprecedented Rs 153,400 per tola, according to the Federation of Nepal Gold and Silver Dealers’ Associations (FENEGOSIDA).

This peak surpassed the previous high on September 6, when gold had reached Rs 153,300 per tola following a Rs 1,300 per tola rise.

The consistent upward trend, with gold’s price rising from Rs 152,400 per tola on Wednesday, reflected strong demand or market uncertainty. In contrast, silver prices fell, with silver trading at Rs 1,780 per tola after a decrease of Rs 15 per tola.

This divergence in precious metal prices highlighted shifting market dynamics and investor sentiment.

(Prepared by Srija Khanal)

Publish Date : 12 September 2024 08:19 AM

Today’s news in a nutshell

KATHMANDU: Khabarhub brings you a glimpse of major developments of

State saves Rs 1.5 billion by not issuing new banknotes

KATHMANDU: Nepal Rastra Bank (NRB) has saved Rs 1.5 billion

PM Oli stresses ‘serious discussion’ on dual citizenship issue

KATHMANDU: The International Coordination Council of the Non-Resident Nepali Association

Partial rain expected in three provinces during Dashain

KATHMANDU: The Department of Hydrology and Meteorology, Weather Forecasting Division

Banana loss worth 5 million due to floods

SUNSARI: Binod Mehta from Inaruwa-4, Sunsari, is facing significant losses