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) saw a modest recovery on Thursday, climbing by 13.95 points or 0.51 percent to close at 2,748.78 points, reversing the recent losses from the past two days.
This uptick comes after a decline of 14.12 points in the prior session, indicating some stabilization in the market.
The day’s trading volume reached 21.66 million shares, with a turnover of Rs. 10.32 billion, suggesting a healthy level of activity despite the market’s recent volatility.
Meanwhile, gold prices continued their downward trend, dropping by Rs. 2,200 per tola to Rs. 160,000, a reflection of broader market fluctuations that have seen gold prices fall by Rs. 11,000 over the past two weeks.
In corporate news, NRN Infrastructure reported an impressive 387.83 percent rise in profits, signaling strong financial performance, while the government is pushing for progress on the long-delayed Narayangadh-Butwal road project, with a warning of contract termination if delays continue.
Additionally, the stock broker sector continues to expand, with the number of authorized broker companies reaching 90, signaling growth in Nepal’s capital markets.
NEPSE gains 0.51 percent, ends at 2,748.78 points
The Nepal Stock Exchange (NEPSE) made a recovery on Thursday, rising by 13.95 points or 0.51 percent to close at 2,748.78 points, reversing the losses of the past two days.
This positive movement follows a decline of 14.12 points in the previous session.
NEPSE began the day at 2,738.91 points, fluctuating between a low of 2,729.67 and a high of 2,762.51 points during the trading hours.
The session saw a total of 21,660,639 shares traded across 321 companies, with 101,545 transactions, leading to a turnover of Rs. 10.32 billion.
Gold price drops by Rs 2,200 per tola in Nepal
Gold prices saw a notable decrease on Thursday, continuing a downward trend for the past five days.
The price of gold fell by Rs 2,200 per tola, bringing it to Rs 160,000 per tola, according to the Nepal Gold and Silver Traders Federation. On Wednesday, the price was Rs 162,200 per tola.
Gold prices reached a record high of Rs 171,000 per tola on October 31. Since then, they have been steadily declining, with a total decrease of Rs 11,000 per tola over the last two weeks.
The Federation also reported a drop in silver prices on Thursday. Silver, which was priced at Rs 1,940 per tola on Wednesday, fell by Rs 35, standing at Rs 1,995 per tola.
Three candidates shortlisted for SEBON Chairperson
Three candidates have been shortlisted for the position of Chairperson of the Securities Board of Nepal (SEBON): Krishna Bahadur Karki, Chiranjibi Chapagain, and Dr. Nabaraj Adhikari.
Their interviews are scheduled for November 24 at 8:00 am. The selection process was delayed after a previous interview date was postponed, and a new recommendation committee was formed to restart the process.
However, a lawsuit filed by candidate Santosh Narayan led the Supreme Court to halt the restart, prompting the government to resume the original selection process. SEBON has been without a chairperson since Poush 20, 2080.
NRN Infrastructure reports impressive 387.83% profit growth
NRN Infrastructure and Development Limited has posted remarkable financial growth in the first quarter of FY 2081/82, with a staggering 387.83 percent increase in net profit, which rose to Rs. 4.33 crores from Rs. 88.83 lakhs in the same period last year.
The company also saw a 337.84 percent surge in revenue, reaching Rs. 6.21 crores. This performance is bolstered by strong financial metrics, including retained earnings of Rs. 15.95 crores and a revaluation reserve of Rs. 66.6 crores. NRN has also made significant investments, including Rs. 34.27 crores in associates.
The company’s earnings per share (EPS) stands at Rs. 14.17, and its net worth per share is Rs. 113.04.
PM Oli warns contract termination if Narayangadh-Butwal Road work delayed
Prime Minister KP Oli has warned that the government will terminate the contract with the Chinese company responsible for the delayed Narayangadh-Butwal road section of the Mahendra Highway if work does not resume by mid-December.
During a meeting with ministers, officials, and lawmakers, he expressed frustration over the project’s nearly 28-year delay and the negative impact on local residents and the economy.
While PM Oli acknowledged the importance of working with a reliable contractor, he stressed the need for decisive action to avoid further stalling of the project, which has failed to meet the expectations set when it was first launched.
Number of stock broker companies reaches 90
The number of stock broker companies authorized to conduct transactions in Nepal’s secondary stock market has reached 90, with eight new companies granted permission in the current fiscal year, following 82 companies approved in the previous fiscal year (2023/24).
As of October 16, 2024, the Nepal Stock Exchange (NEPSE) has issued licenses to these 90 companies for share transactions. Additionally, two companies, Nagarik Stock Dealer Company Limited and Nabil Stock Dealer Limited, have had their memberships renewed for the current fiscal year.
Of the 90 registered stock broker companies, only two are permitted to carry out full transactions, while the remaining 88 are limited to partial transaction activities.
Nepal exporting 40 MW of electricity to Bangladesh
Bangladesh will import 40 megawatts (MW) of electricity from Nepal today. The electricity will be delivered through the Indian transmission line, starting at 12:45 PM on Friday.
Kulman Ghising, Executive Director of the Nepal Electricity Authority (NEA), said that the Energy Ministers of Nepal, India, and Bangladesh will inaugurate the electricity export via a virtual ceremony.
Despite a tripartite agreement signed in Kathmandu on October 3, the export had been delayed due to India’s non-approval.
(Prepared by Srija Khanal)
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