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) experienced a downward trend on Thursday, with a loss of 33.42 points, despite a strong trading volume of NPR 6.14 billion.
This decline was largely driven by losses in several sectors, with the life insurance group suffering the most significant drop.
However, the industry sector showed resilience, posting gains. Meanwhile, the stability in gold and silver prices contrasts with the volatility observed in recent weeks, with gold prices holding steady after a recent surge.
On the economic front, Nepal’s foreign exchange reserves have seen a notable increase, surpassing Rs 2.25 trillion, indicating a positive economic outlook.
However, diesel imports have dropped significantly, affecting revenue collection, while mountain climbing permits have also seen a decline, reflecting a shift in the tourism sector.
NEPSE falls by 33 points
The Nepal Stock Exchange (NEPSE) experienced a decline of 33.42 points on Thursday, marking a downturn on the final trading day of the week.
Despite a total of NPR 6.14 billion in trading volume, most sectors saw a drop, with the life insurance group suffering the most, losing 180.41 points.
However, the industry sector showed a positive performance, rising by 26.53 points.
A total of 204 companies saw a decrease in share prices, while 40 companies posted gains.
Among the notable movements, Trishuli Hydropower Company saw the highest gains, while Janaki Finance Company experienced the largest losses.
Gold price steady on Thursday
The price of gold remained steady at Rs 154,200 per tola on Thursday, following a notable surge of Rs 4,500 over the past three days.
This increase came after a series of daily hikes, including Rs 400 on Monday, Rs 2,100 on Tuesday, and Rs 2,000 on Wednesday. Despite this recent uptrend, gold prices have now stabilized at the same level as yesterday.
Meanwhile, silver prices have shown consistency, remaining unchanged at Rs 1,925 per tola for the past three days.
This stability contrasts with last week’s sharp decline in gold prices, which had plummeted by Rs 18,500 within just two days, highlighting the volatility in the market.
Nepal’s foreign exchange reserves cross Rs 2.25 trillion as of mid-Kartik
Nepal’s foreign exchange reserves have surpassed Rs 2.25 trillion as of mid-Kartik in the current fiscal year.
According to data released by Nepal Rastra Bank on Thursday, the total foreign exchange reserves, which stood at Rs 2,041.10 billion in mid-Ashar of the previous fiscal year, have increased by 10.5 percent to reach Rs 2,255.35 billion by mid-Kartik of FY 2081.
The reserves in US dollars have also risen by 9.4 percent, reaching USD 16.70 billion in mid-Kartik of 2081, up from USD 15.27 billion in mid-Ashar of the same year, according to Nepal Rastra Bank.
Diesel import from Birgunj plummets
Diesel imports via the Birgunj Customs Office have declined by 9.41% in the first four months of the current fiscal year, resulting in a 15.16% drop in revenue.
During this period, 246,719 kilolitres of diesel worth Rs 21.84 billion were imported, a significant decrease from the previous fiscal year’s import of Rs 30.17 billion.
The decline in diesel imports, along with reduced imports of vehicles and raw materials, has directly impacted revenue collection, according to Chief Customs Administrator Deepak Lamichhane.
In contrast, petrol imports saw a slight increase, with 142,865 kilolitres valued at Rs 12.42 billion, compared to 129,126 kilolitres worth Rs 13.18 billion in the same period last year.
Autumn mountain climbing permits drop to 2,245
The number of people obtaining permits for mountain climbing this autumn (August to December) has declined compared to last year.
This year, only 2,245 climbers have received permits for the autumn season. According to the Department of Tourism (DoT), 4,407 permits were issued for climbing 54 peaks in the same period last year.
In contrast, this season, permits have been granted to 1,943 men and 301 women from various countries, allowing them to climb 47 different peaks.
Of these, 543 men and 82 women have successfully reached the summits. Last year, 1,071 men and 87 women achieved the same feat.
Prabhu Steels to boost hydropower investments
Prabhu Steels and Hydro Investment Company Limited is progressing with its Rs. 98 crore IPO, managed by Kumari Capital.
Backed by Prabhu Group subsidiaries, the company has diverse investments in hydropower, agriculture, tourism, and manufacturing. It also imports hydropower machinery and recently acquired land in Birgunj for hydropower projects.
The IPO funds will be used to aggressively expand its hydropower investments and increase stakes in key projects like Liberty Energy Company and Siddhartha Cablecar.
(Prepared by Srija Khanal)
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