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) faced a decline on the second trading day of the week despite expectations of a positive response to the appointment of a new Finance Minister.
The NEPSE index dropped by 17.18 points, closing at 2240, as 184 companies saw declines compared to only 56 that saw gains. Trading was active with 32.2 million shares of 322 companies changing hands, totaling Rs 8.73 billion in turnover.
Meanwhile, Lumbini Province has utilized 66.14% of its budget for the fiscal year 2023/24, with capital expenditure surpassing current expenditure.
Additionally, gold prices surged domestically, with fine gold reaching Rs 146,900 per tola and silver rising to Rs 1,885 per tola amidst global economic influences and local demand dynamics.
Paddy transplantation across Nepal has reached 67.3%, boosted by favorable rainfall conditions in key agricultural regions.
NEPSE declines on first day of new Finance Minister’s tenure
The Nepal Stock Exchange (NEPSE) experienced a significant drop on the second trading day of the week. Despite expectations of a boost following the appointment of the new Finance Minister, the market failed to gain momentum.
The NEPSE index decreased by 17.18 points, closing at 2240. While the share prices of 56 companies increased, those of 184 companies declined.
Throughout the day, 32.2 million shares of 322 companies were traded, amounting to a total turnover of Rs 8.73 billion.
Petrol to cost Rs 171 per liter from today
Effective today, motorists in Kathmandu will face an increase in petrol prices, now set at Rs 171 per liter following a Rs 4 per liter hike sanctioned by the Nepal Oil Corporation (NOC).
The decision, endorsed by NOC’s Board of Directors, also raised diesel and kerosene prices by Rs 3 per liter, setting them at Rs 160 per liter in the Kathmandu Valley.
This adjustment reflects recent increases in fuel costs from India, as stated by NOC officials.
Lumbini Province’s fiscal year 2023/24 budget utilization reaches 66.14%
In the current fiscal year 2023/24, Lumbini Province has utilized 66.14% of its allocated budget of Rs 17.223 billion, spending Rs 10.743 billion according to Provincial Treasury Controller Deepak Gyawali.
Capital expenditure has exceeded current expenditure this year.
The Ministry of Drinking Water, and Rural and Urban Development has the highest budget utilization at 77.40%, whereas the Office of the Chief Minister and Council of Ministers has the lowest at 16.69%, with only 9.009% of its capital expenditure utilized.
The Provincial Assembly has spent 66.34% of its allocated Rs 338.838 million budget, as per statistics from the Office of the Province Treasury Controller.
Gold prices surge; Silver also rises
The Nepal Gold and Silver Dealers’ Association reported a notable increase in gold prices in the domestic market, with fine gold rising by Rs 200 per tola to Rs 146,900, and standard gold reaching Rs 146,200 per tola on Monday marking the highest recorded price for gold to date.
This surge contrasts with Sunday’s prices of Rs 146,700 and Rs 146,000 per tola for fine and standard gold, respectively, indicating a significant daily fluctuation.
Concurrently, the price of silver also saw an uptick of Rs 15 per tola, settling at Rs 1,885.
Such movements highlight the volatility within the precious metals market, influenced by factors such as global economic conditions, investor sentiment, and local demand dynamics.
The increase in gold prices, in particular, reflects ongoing market sensitivity and potential hedging behaviors amidst economic uncertainties, while silver’s rise underscores its role as a more accessible alternative investment amidst the current financial landscape.
Paddy transplantation reaches 67.3% nationally
Currently, the country has completed 67.3% of paddy transplantation for the season, with paddy cultivated across 940,500 hectares of land, according to official data.
Regional progress stands at 61.7% in Koshi, 69.2% in Bagmati, 75% in Gandaki, 66.7% in Lumbini, 78% in Karnali, and 86% in Sudurpaschim Province, as reported by Hari Bahadur KC, spokesperson for the Ministry of Agriculture and Livestock Development. The recent acceleration in transplantation is attributed to favorable rainfall conditions this week.
(Compiled and prepared by Srija Khanal)
Economic Digest is a daily morning economic digest, basically relatable summations of the most important business news, and happenings from Nepal into easy-to-understand summaries.
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