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) Index experienced a minor decline of 0.27% on the latest trading day, closing at 2,923.46 points after a strong previous session.
Meanwhile, gold prices hit a record high of Rs 150,800 per tola, and silver prices also rose.
In Okhaldhunga, a significant portion of the development budget remains unspent, leading to a freeze on these funds.
Nabil Bank is set to discuss preference shares and capital increases in a special general meeting.
AirAsia will resume flights from Kathmandu to Bangkok in October with promotional fares, while stakeholders advocate for a Public-Private Partnership model to optimize Nepal’s underutilized airports.
NEPSE index experiences minor drop of 0.27 percent
KATHMANDU: The Nepal Stock Exchange (NEPSE) Index ended today at 2,923.46 points, reflecting a decrease of 8.18 points, or 0.27%, compared to the previous day.
This minor drop follows a strong previous session where the index had risen by 70.81 points, demonstrating continued positive momentum.
The trading day commenced with the index at 2,947.7 points.
During the day, it varied between an intraday low of 2,891.43 points and a high of 2,971.69 points before closing at the final value.
Trading activity was robust, with 332 stocks traded through 241,665 transactions, totaling 52,764,832 shares and generating a notable turnover of Rs. 21.15 billion.
The market capitalization for the day was Rs. 4.64 trillion, and the float market capitalization was Rs. 1.62 trillion.
Gold prices soar to record high, reaching Rs 150,800 per tola
The price of gold surged by 2,100 rupees on Tuesday, reaching a new record of Rs 150,800 per tola, according to the Federation of Nepal Gold and Silver Dealers’ Association.
This increase followed a prior record set on August 5, when fine gold had reached Rs 150,000 per tola.
At the same time, the price of silver rose by 25 rupees per tola, trading at Rs 1,740.
On the international market, gold had been valued at $2,460 per ounce, while silver was priced at $27.66 per ounce.
This persistent rise in precious metal prices reflected ongoing volatility and heightened investor interest.
Okhaldhunga freezes development budget as over Rs 793 million remains unspent
In Okhaldhunga, Koshi Province, the development budget for the fiscal year 2022/23 has been frozen, with over Rs 793 million from the previous year’s allocation remaining unspent, as reported by the District Treasury Controller Office.
This unutilized budget will be returned to both provincial and federal governments.
Okhaldhunga’s total allocation for the fiscal year was over Rs 8.54 billion, including Rs 4.78 billion from the federal government for current expenses and Rs 1.18 billion for capital projects, along with Rs 627.25 million and Rs 1.55 billion from the provincial government for similar purposes.
Despite these substantial funds, there has been a notable decline in local budget expenditure in recent years, resulting in the incomplete status of critical infrastructure projects such as the Likhu and Molu Corridors and various road and bridge initiatives, highlighting persistent challenges in fund utilization and project execution.
Nabil Bank to hold special general meeting to discuss preference shares and capital increase
Nabil Bank Limited’s 662nd Board of Directors meeting, held on August 11, 2024, resulted in key resolutions that will be reviewed at a Special General Meeting (SGM) scheduled for August 31, 2024.
The SGM will address the issuance of “Nabil’s 8% Irredeemable Non-cumulative Preference Shares” and a proposal to increase the bank’s authorized, issued, and paid-up capital. Additionally, it will consider necessary amendments to the bank’s regulations.
This meeting is crucial for shareholders, as it will impact Nabil Bank’s future financial and operational strategies. Stakeholders are encouraged to participate actively in shaping the bank’s future direction.
AirAsia launches Kathmandu to Bangkok flights with promotional fares
AirAsia will resume flights from Kathmandu to Bangkok starting October 2, after a five-year hiatus.
The budget airline will operate four weekly flights to Don Mueang on Mondays, Wednesdays, Fridays, and Sundays.
To promote the launch, AirAsia is offering tickets at Rs 9,990 for travel between October 2, 2024, and March 28, 2025, with bookings available from August 12 to August 25.
Normal fares for this route start around Rs 24,000. Tickets can be purchased via the AirAsia Move app, Universal Tours and Travels, or through AirAsia agencies.
Stakeholders push for PPP model to enhance Nepal’s underutilized airports
Stakeholders suggested adopting the Public-Private Partnership (PPP) model to fully operate Nepal’s international airports, including Pokhara and Bhairahawa, which remained underutilized despite substantial donor funding.
Former CAAN Director General Triratna Manandhar supported the PPP model, arguing it could improve airport operations through better marketing, expertise, and efficiency. He noted that, while the PPP model had been successful globally, Nepal lacked the legal framework to implement it.
CAAN had proposed amending the Civil Aviation Authority Act to facilitate this model. Former Prime Minister Pushpa Kamal Dahal also endorsed the idea, though he acknowledged the complexity of implementation.
Meanwhile, Saurya Airlines had suspended flights due to an expired operating permit and staff shortages, worsened by a recent crash and the subsequent loss of technical personnel.
The airline awaited government approval to renew its permit.
US dollar stable, euro and pound rise slightly
Today, Nepal Rastra Bank has maintained the US dollar rates at 134.06 rupees for buying and 134.66 rupees for selling, unchanged from the previous day (Tuesday).
However, most other foreign currencies have experienced slight fluctuations. The euro and British pound have seen modest increases in both buying and selling rates, with the euro rising to 146.49/147.14 rupees and the pound to 171.43/172.20 rupees.
Conversely, the Australian dollar has decreased slightly to 88.41/88.80 rupees, while the Kuwaiti dinar has risen marginally to 437.82/439.78 rupees.
The Bahraini dinar rates have also seen a minimal adjustment, now standing at 355.64/357.24 rupees.
Overall, the changes reflect minor daily variations in the value of foreign currencies against the Nepalese rupee.
(Prepared by Srija Khanal)
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