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) experienced a notable rebound following the Dashain holiday, with the index rising by 31.48 points (1.17%) to close at 2,699.66 points, reflecting increased trading activity and positive market sentiment.
This follows a modest pre-holiday gain, indicating sustained investor engagement, as evidenced by 307 stocks traded and a turnover of Rs. 3.06 billion.
Concurrently, remittance inflows into Nepal rose by 15.2% in the second month of the fiscal year, reaching over Rs 263 billion, despite a slowdown from the previous year’s growth rate.
This inflow is vital for economic stability, supported by a steady demand for foreign employment.
In another significant development, the Nepal Electricity Authority (NEA) issued warnings to consumers regarding unpaid electricity dues, signaling its commitment to financial stability through potential legal actions for outstanding payments.
Meanwhile, Gautam Buddha International Airport is set to enhance its operations with the introduction of flights from Jazeera, Fly Dubai, and Air Asia, marking a crucial step in improving international connectivity and boosting regional tourism.
Collectively, these developments highlight a period of optimism and recovery across various sectors of Nepal’s economy.
NEPSE rises by 31.48 points following Dashain
The Nepal Stock Exchange (NEPSE) saw a significant rise in trading activity and market sentiment on Monday.
On its first trading day after the Dashain holiday, the NEPSE index closed at 2,699.66 points, an increase of 31.48 points (1.17%) from the previous day. This uptick follows a modest gain of 4.85 points before the festival.
During the session, the index opened at 2,668.08 points, fluctuating between an intraday low of 2,667.82 and a peak of 2,700.23, indicating active trading and engagement from investors.
A total of 307 stocks were traded across 35,648 transactions, with 6,417,267 shares exchanged and a total turnover of Rs. 3.06 billion, reflecting strong financial flow and high investor confidence.
Market capitalization rose to Rs. 4.29 trillion, while float market capitalization reached Rs. 1.51 trillion, indicating a solid foundation for future growth.
Overall, NEPSE’s performance post-Dashain suggests a positive recovery and optimism among investors, potentially leading to increased trading activity and growth in the near future.
Nepal witnesses 15.2 percent increase in remittances
In the second month of the current fiscal year, Nepal received over Rs 263 billion in remittances, reflecting a notable increase from Rs 228.37 billion during the same period last year.
According to the Nepal Rastra Bank, remittance inflows rose by 15.2%, although this represents a slowdown compared to the 18.7% growth seen in the previous year. In U.S. dollar terms, remittances reached $1.96 billion, up from $1.73 billion in the corresponding month last year.
The data also indicated a steady demand for foreign employment, with 76,485 Nepali workers obtaining first-time approvals and 40,583 seeking renewals for foreign employment.
This sustained inflow of remittances is crucial for the country’s economy, contributing significantly to household incomes and overall economic stability.
NEA warns of action against consumers for unpaid electricity dues
The Nepal Electricity Authority (NEA) has taken a firm stance on unpaid electricity dues, warning consumers of potential legal action if they do not settle their overdue payments.
This directive follows a decision made during an NEA Board meeting and is in response to instructions from the Ministry of Energy.
NEA has dispatched letters to distribution centers urging them to collect outstanding payments that have accumulated from Magh 2072 BS to Baisakh 2075 BS.
Affected consumers are given a deadline until the end of Kartik 2081 BS to clear their dues; failure to comply will result in legal proceedings initiated by NEA to recover the owed amounts.
This move underscores NEA’s commitment to enforcing payment compliance and ensuring the financial stability of its operations.
Gautam Buddha Int’l Airport set to welcome Fly Dubai, Jazeera, and Air Asia flights
Gautam Buddha International Airport in Bhairahawa is poised to commence commercial international flights as three airlines—Jazeera from Kuwait, Fly Dubai, and Air Asia from Thailand—prepare to operate services from the airport.
Despite the completion of its construction, the airport has faced challenges in launching international flights.
However, according to General Manager Pratap Babu Tiwari, the Civil Aviation Authority of Nepal has granted approval for all three carriers, and a flight schedule has been established to facilitate operations.
This development marks a significant step towards enhancing international connectivity and improving the airport’s functionality, which has long been anticipated to boost regional tourism and economic growth.
(Prepared by Srija Khanal)
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