KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The NEPSE index on Thursday closed at 2745.36 points with a modest gain of 2.47 points, supported by high trading activity that saw 18.88 million shares exchanged and a turnover exceeding 7 billion rupees.
Kumari Bank was the most actively traded stock, while Goodwill Finance led among the 89 companies that saw price increases, rising by 7 percent.
Concurrently, gold prices reached a record high of Rs 162,400 per tola, up Rs 600 from the previous day, continuing a trend of rising prices this month, while silver prices remained stable at Rs 1,950.
Additionally, in the first two months of FY 2024/25, Banks and Financial Institutions issued Rs 9.67 billion in loans against shares, a 10.7 percent increase, following a change in monetary policy that lifted the cap on margin trading loans.
Meanwhile, motorcycle imports through the Birgunj transit point surged by 76.86 percent, totaling 7,120 units valued at Rs 2.78 billion.
NEPSE closes with a 2-point gain; turnover exceeds 7 billion
The NEPSE index on Thursday experienced a modest increase, closing at 2745.36 points after a gain of 2.47 points.
Despite the small uptick, trading activity was notably high, with investors exchanging 18.88 million shares across 316 companies, leading to a turnover of 7.19 billion rupees.
Kumari Bank emerged as the most actively traded stock, with 330 million shares changing hands.
Among the 89 companies that saw price increases, Goodwill Finance stood out with a notable 7 percent rise. Overall, the market demonstrated robust activity despite the modest index gain.
Gold prices reach new heights; sets new benchmark
Gold prices reached a new all-time high on Thursdya standing at Rs 162,400 per tola, as reported by the Federation of Nepal Gold and Silver Traders.
This marked an increase of Rs 600 from the previous day’s price of Rs 161,800, which itself had risen by Rs 1,300.
Notably, the price has seen multiple record highs this month, with a previous peak on October 1st.
In contrast, the price of silver remains unchanged today at Rs 1,950 per tola, following a recent increase from Rs 1,925 earlier in the week.
Overall, while gold prices continue to climb, silver has stabilized after a brief rise.
BFIs boost loans against shares to Rs 9.67 billion in FY 2024/25
In the first two months of FY 2024/25, Banks and Financial Institutions (BFIs) issued Rs 9.67 billion in loans against shares, marking a 10.7 percent increase from the previous period. The total credit in this segment reached Rs 90.09 billion by the end of the last fiscal year.
A recent shift in monetary policy allowed for the removal of the Rs 200 million cap on margin trading loans, and BFIs have lowered interest rates due to excess loanable funds.
This has contributed to a bullish trend in the secondary market, with market capitalization exceeding Rs 4.10 trillion.
By mid-September, total margin lending reached Rs 99.76 billion, a 38.6 percent increase year-over-year. Notably, loans over Rs 10 million rose by 17.9 percent, while smaller loan segments experienced declines.
NAC pays back Rs 6.32 billion loan
The Nepal Airlines Corporation (NAC) has so far paid back Rs 6 billion 328 million 597 thousand of the loan it had taken for purchasing aircraft for international flights.
The national flag-carrier had taken loan from the Employees Provident Fund and Citizens Investment Trust for the two narrow-body and two wide-body aircraft that it purchased, NAC said in a press release.
NAC spokesperson Ramesh Poudel said the airlines on October 16 paid Rs 530 million 955 thousand 281 that included the full installment for the two narrow-body aircraft for the month of Asoj and the part installment for two wide-body.
Motorcycle import via Birgunj point increases by more than 76 percent
Import of motorcycles via the Birgunj transit point increased by 76.86 percent in the first two months of the current fiscal year 2080-81 (2024-25) compared to the same period last year.
According to the Birgunj Customs Office, a total of 7,120 motorcycles were imported as of September 17 of the current fiscal year, which began on July 16.
This marks a significant rise from the 9,264 motorcycles imported during the corresponding period last year.
The total value of these motorcycles was Rs two billion 78.04 million against Rs one billion 135 million last year.
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