KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
NEPSE ended the week with a robust 4.01% gain, closing at 2,204.61 from the previous week’s 2,119.70, amid volatility ranging between 2,205.15 and 2,121.99. Thursday saw the highest daily gain of 29.21 points, contributing to a weekly turnover of Rs 28.93 billion.
Meanwhile, Nepal’s gold market reached historic highs with fine gold priced at Rs. 1,46,700 per tola on Friday, reflecting global economic influences where international gold traded at $2,407.00 per ounce. The surge highlighted interconnected market dynamics driven by local demand, inflation, and currency dynamics.
Additionally, Nepal’s government unveiled a comprehensive five-year strategy to combat financial crimes, aiming to strengthen regulatory frameworks across high-risk sectors.
Concerns about Nepal’s economic recovery were underscored by the IMF, citing low capital expenditure and political instability as significant barriers despite approval of $41.3 million in Special Drawing Rights to support the economy.
NEPSE ends week with 4.01 percent gain and Rs 28.93 billion turnover
NEPSE concluded the week with a notable 4.01% gain, closing at 2,204.61 from the previous week’s 2,119.70. The index showed volatility between 2,205.15 and 2,121.99, marking an 83.16-point range.
Thursday recorded the highest daily gain of 29.21 points, with a turnover of Rs 7.08 billion contributing to a total weekly turnover of Rs 28.93 billion.
Bullish momentum was indicated by RSI readings of 75.74 (daily) and 62.68 (weekly), along with positive MACD readings above zero at 27.07.
The index remained above its 20-day and 5-day Exponential Moving Averages, suggesting continued bullish sentiment, with support expected at 2,140-2,160 and resistance around 2,280 going forward.
Nepal’s gold market hits all-time high
Nepal’s gold and silver market on Friday reached historic highs, with fine gold priced at Rs. 1,46,700 per tola, reflecting significant volatility and rising demand.
This surge, influenced by global economic conditions—where international gold is priced at $2,407.00 per ounce—highlights the interconnectedness of local and global markets.
Factors such as local demand dynamics, inflation, and currency strength contribute to these price increases, impacting investor behavior and consumer purchasing decisions, while also serving as an economic indicator of overall market health.
Govt develops strategies to combat money laundering
The government created a five-year national strategy and action plan aimed at curbing financial investment in money laundering and terrorist activities. This initiative focuses on strengthening preventive and regulatory measures in high-risk sectors, including banking, cooperatives, securities, real estate, precious metals, and casinos.
Research and assessments concerning money laundering, terrorist financing, and the proliferation of weapons of mass destruction indicate a pressing need for significant enhancements in legal and institutional frameworks. The results highlight the necessity for stricter risk-based regulations, oversight, investigations, prosecutions, and asset confiscation measures.
Nepal’s economic recovery hindered by capital expenditure and political instability: IMF
The International Monetary Fund (IMF) has raised concerns about Nepal’s economic recovery, citing low capital expenditure, vulnerabilities in the financial sector, and political instability as major obstacles.
These issues were highlighted following the IMF Executive Board meeting on Nepal’s Extended Credit Facility (ECF) Arrangement. The IMF emphasized that these challenges are likely to hamper the country’s efforts to implement necessary economic reforms.
Additionally, the IMF approved Nepal’s use of Special Drawing Rights (SDR) amounting to 31.4 million, equivalent to US $41.3 million.
(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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