KATHMANDU: Last week, the NEPSE index demonstrated robust performance, closing at 2204.61 after navigating a series of fluctuations throughout the week. Opening at 2140.97, the index encountered a minor dip of 0.21% on Monday, which raised concerns among investors. However, beginning Tuesday, the market rebounded strongly, posting gains of 0.73%, 1.08%, and 1.34% on consecutive days.
This positive momentum reflects heightened investor confidence, driven by favorable economic indicators and sector-specific developments.
The upward trajectory not only highlights the resilience of the Nepali market amid ongoing external economic uncertainties but also encourages stakeholders to remain vigilant in monitoring both global trends and local economic policies that may influence future market movements.
NEPSE index posts strong weekly gains
Throughout the week, NEPSE exhibited a dynamic performance characterized by fluctuations and overall gains. Starting at 2140.97 on Sunday with a 1.00% increase, the index saw a minor dip of -0.21% on Monday, settling at 2136.35.
However, market sentiment improved notably from Tuesday onwards, as the index surged by 0.73% on Tuesday, followed by more substantial gains of 1.08% on Wednesday and 1.34% on Thursday, closing the week at 2204.61.
These gains reflect growing investor confidence, likely bolstered by positive economic indicators or sector-specific developments. The week’s performance suggests resilience in the face of external economic uncertainties, prompting stakeholders to remain attentive to both global market trends and local economic policies influencing future market movements on NEPSE.
Gold prices in Nepal show volatile week
Throughout the week, the price of gold in Nepal exhibited notable fluctuations, starting at Rs 145,400 per tola on Sunday, dipping to Rs 144,100 on Tuesday and Wednesday, and then rising to Rs 146,700 by Friday. This volatility suggests a responsive market influenced by both domestic and international factors.
Globally, gold prices are sensitive to geopolitical tensions, economic data releases, and currency movements, which likely contributed to the observed fluctuations.
Domestically, consumer demand and supply dynamics play pivotal roles in shaping local prices. The slight upward trend towards the end of the week indicates underlying market optimism or speculative activity, possibly driven by investor sentiment or anticipated changes in economic policies.
However, the week’s overall price movements reflect moderate volatility, prompting stakeholders to remain vigilant to external market cues and domestic economic indicators for informed decision-making in the gold market.
Department of Mines and Geology expands mining activities nationwide
The Department of Mines and Geology (DoMG) has authorized exploration activities at 80 mines throughout Nepal, issuing mining prospecting certificates to several companies for the fiscal year spanning mid-July 2023 to mid-June 2024.
Additionally, permits for excavation have been granted for eight mines, while the department monitored a total of 107 mines nationwide and revoked permits at 114 locations during the same period. In collaboration with the Chinese government, ongoing drilling operations in Dailekh have reached a depth of 951 meters, focusing on potential petroleum reserves.
The DoMG has also recorded more than 57 earthquakes above Richter scale 4 across the country, conducting earthquake awareness programs in Barpak, Gorkha, and geological studies in Jitpur, Simara, Province 2. Furthermore, initial efforts to develop limestone mines in Surkhet have generated revenue amounting to Rs 587.4 million.
Nepal to export 40 megawatts of electricity annually to Bangladesh during monsoon seasons
The Bangladesh Power Development Board has formally invited Nepal to finalize a trade agreement to purchase 40 megawatts of electricity. Nepal Electricity Authority (NEA) has received a letter confirming Bangladesh’s intention to import electricity generated in Nepal during the monsoon season for six months annually.
NEA’s Executive Director, Kulman Ghising, has verified the completion of all necessary procedures, paving the way for electricity exports to commence within the current year. According to the terms of the agreement, Nepal will supply Bangladesh with 40 megawatts annually from June 15th to November 15th for the next five years. NEA expects to earn 6.40 cents per unit once exports begin.
Nepal sees 22.7% surge in remittances, reaching 1.33 trillion rupees
Nepal saw remittances totaling 1.33 trillion rupees in the first 11 months of the current fiscal year, marking a notable 22.7 percent increase from the previous year. This surge, coupled with a 17.3 percent rise in remittances in US dollars amounting to 9.98 billion dollars, highlights the pivotal role of migrant workers in bolstering Nepal’s economy.
Despite global economic uncertainties, the consistent inflow of remittances has significantly contributed to household incomes and overall economic stability.
The Nepal Rastra Bank’s report also emphasizes sustained interest in foreign employment, evidenced by substantial numbers of new labor approvals, underscoring the enduring importance of remittances in Nepal’s economic landscape.
Govt launches five-year strategy to combat financial crime, enhance sector oversight
The government has introduced a five-year national strategy and action plan to combat financial involvement in money laundering and terrorist activities.
This initiative concentrates on reinforcing preventive and regulatory measures within vulnerable sectors such as banking, cooperatives, securities, real estate, precious metals, and casinos.
Research and evaluations concerning money laundering, terrorist financing, and the spread of weapons of mass destruction underscore the urgency for substantial improvements in legal and institutional frameworks.
The findings underscore the need for more stringent risk-based regulations, enhanced oversight, intensified investigations, prosecutions, and measures for asset confiscation.
(Prepared by Srija Khanal)
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