KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
On Wednesday, the NEPSE index rose by 1.17%, closing at 2,957.75 points, following a previous decline.
The trading session saw considerable activity with over 244,000 transactions and a turnover of Rs. 23.43 billion.
Meanwhile, gold prices dropped by Rs. 300 per tola to Rs. 150,500, while silver prices increased by Rs. 5 per tola.
Nepal’s electricity transmission network has more than doubled to 6,507 km over eight years, despite challenges.
Yeti Airlines received IATA ISSA certification for safety standards, and dairy farmers are facing Rs. 6.5 billion in unpaid dues, prompting potential protests despite a planned partial government payment.
NEPSE index surges 1.17 percent in Wednesday’s trading session
The NEPSE index on Wednesday climbed 1.17 percent, closing at 2,957.75 points after gaining 34.29 points.
This uptick follows a decline of 8.18 points in the previous session, reflecting ongoing positive momentum in the market.
The day started with the index at 2,936.62 points, and throughout the trading session, it experienced fluctuations, hitting a low of 2,883.81 points and a high of 2,959.19 points before ending at its final value.
The trading session saw significant activity with 332 stocks traded across 244,019 transactions, totaling a volume of 51,230,340 shares and a turnover of Rs. 23.43 billion.
The market capitalization for the day was Rs. 4.69 trillion, while the float market capitalization reached Rs. 1.64 trillion.
Gold traded at Rs 150,500 per tola on Wednesday
The price of gold on Wednesday fell by Rs 300 per tola, with fine gold trading at Rs 150,500 per tola, according to the Federation of Nepal Gold and Silver Dealers’ Association.
This decline followed a recent peak on August 13, when fine gold had reached a record high of Rs 150,800 per tola. In contrast, silver had seen an increase of Rs 5 per tola, resulting in a trading price of Rs 1,735.
This fluctuation highlights the ongoing volatility in the precious metals market.
NEA doubles transmission line length to 6,507 km
Nepal has increased its electricity transmission infrastructure in recent years, with the total length of transmission lines expanding to 6,507 circuit kilometers, more than double the length from eight years ago.
As of FY 2015/16, the country had 2,911 circuit km of transmission lines. NEA Managing Director Kulman Ghising highlighted the substantial progress despite challenges like local resistance, land acquisition, and material transport issues.
The current transmission network includes 4,136 km of 132 kV, 1,213 km of 220 kV, 644 km of 400 kV, and 514 km of 66 kV lines.
Yeti Airlines secures IATA ISSA certification
Yeti Airlines has earned the International Air Transport Association (IATA) Standard Safety Assessment (ISSA) certification, signifying its adherence to top air safety standards.
CEO Subhash Sapkota highlighted that this achievement reflects the airline’s commitment to aviation safety and quality.
The ISSA certification follows a rigorous evaluation of safety management systems. Since its registration in 2016, Yeti Airlines has invested in advanced technology, training, and safety systems to enhance passenger safety and satisfaction.
Dairy farmers face Rs 6.5 billion in unpaid dues
Dairy farmers in Nepal are struggling with Rs6.5 billion in unpaid dues from both state-owned and private dairies, with payments delayed since December.
Despite a recent change in government and new promises, the issue remains unresolved.
The government is set to release Rs600 million to address part of the debt, but farmers are preparing to protest due to ongoing frustrations.
The agriculture minister has requested additional time to resolve the issue, while dairy associations continue to make partial payments.
US dollar slightly declines as major currencies gain value
The foreign currency exchange rates released by Nepal Rastra Bank (NRB) on Thursday reveal a decrease in the US dollar’s value, which has led to increases in the rates of other major currencies.
Specifically, the US dollar is down slightly, with its buying rate at NPR 134.02 and selling rate at NPR 134.62, a decline from earlier rates. In contrast, the Euro, British pound, Australian dollar, Kuwaiti dinar, and Bahraini dinar have all seen a rise in their rates.
For example, the Euro’s buying rate has increased to NPR 147.72, and the British pound to NPR 172.12. These shifts suggest that the weakening US dollar may be impacting the relative strength of other currencies, possibly due to global economic factors or market adjustments.
(Prepared by Srija Khanal)
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