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 gain of 2.95 points (0.11%) on Tuesday, closing at 2,633.87, after a decline in the previous session.
The market experienced fluctuations throughout the day, with a turnover of Rs. 4.34 billion.
The Sanjen Hydropower Project began supplying electricity to the national grid, while NEPSE suspended trading of Bottlers Nepal Limited shares due to a delay in dividend announcements.
Gold prices saw a steady rise, reflecting market volatility, and Chilime Hydropower proposed a 12% dividend, along with Mero Microfinance proposing a 7.89% dividend for the fiscal year 2080/81.
NEPSE closes Tuesday’s session with a modest gain of 2.95 points
The Nepal Stock Exchange (NEPSE) rose by 2.95 points (0.11%) today, closing at 2,633.87 after a decline of 51.37 points in the previous session.
The market opened at 2,633.18 and experienced fluctuations, hitting a high of 2,648.55 and a low of 2,611.89 during the day.
Today’s total turnover reached Rs. 4.34 billion, with 53,957 transactions involving 8,939,348 shares from 318 companies.
The market’s total capitalization stood at Rs. 4.36 trillion, while the float market capitalization was Rs. 1.45 trillion.
Sanjen Hydropower Project begins commercial power generation
The Sanjen Hydropower Project, with a capacity of 42.5MW, has begun commercially supplying electricity to Nepal’s national grid.
Developed by Sanjen Hydroelectric Company Limited, a subsidiary of Chilime Hydropower, the project is located in Rasuwa district.
After completing all necessary technical tests, it started commercial power generation on Monday evening, following a period of test production since November 23.
The project had previously been supplying power through an emergency 11-kV transmission line since October 8, 2023, but is now fully integrated into the national grid.
Additionally, the company constructed an 8-kilometer 11 kV transmission line and a 132/11 kV substation for this purpose.
NEPSE suspends Bottlers Nepal shares
The Nepal Stock Exchange (NEPSE) has suspended the trading of Bottlers Nepal Limited (BNL) shares due to a delay in the company’s dividend announcement.
BNL’s Board of Directors decided on November 20, 2024, not to issue dividends for the fiscal year 2080/81, but NEPSE did not receive the information until December 17, 2024.
This delay violates the Securities Listing Regulations, prompting NEPSE to invoke a suspension and request a written explanation from BNL within three working days.
The suspension will continue until further notice, with investors advised to stay informed on any updates.
Gold price witnesses steady rise
The price of gold in the Nepali market saw a steady rise, increasing by Rs 200 per tola on Tuesday, following a Rs 400 per tola increase on Monday.
Despite a significant drop of Rs 2,200 per tola on Sunday, the recent gains over the past two days have brought the price back up by Rs 600.
This fluctuation reflects the ongoing volatility in the gold market, influenced by factors such as global trends, currency fluctuations, and domestic demand, making it important for investors and consumers to closely monitor price movements.
Chilime Hydropower proposes 12% dividend
Chilime Hydropower Company Limited (CHCL) has proposed a 12% dividend for the fiscal year 2080/81, totaling Rs. 95.80 crores, and scheduled its 28th Annual General Meeting (AGM) for Poush 28, 2081.
During its 438th board meeting on Poush 01, the company announced plans to issue 10% bonus shares valued at Rs. 79.83 crores and 2% cash dividends (including tax) amounting to Rs. 15.96 crores.
With a paid-up capital of Rs. 7.98 billion, CHCL has set the book closure date for the dividend and AGM on Poush 16, meaning that shareholders holding stock before this date will be eligible for the dividend and can participate in the AGM.
Mero Microfinance proposes 7.8947% dividend
Mero Microfinance Laghubitta Bittiya Sanstha Limited (MERO) has proposed a total dividend of 7.8947%, amounting to Rs. 10.42 crores, for the fiscal year 2080/81, following its 165th Board of Directors meeting on Poush 1.
The company, with a paid-up capital of Rs. 1.32 billion, plans to distribute 7.5% in bonus shares worth Rs. 9.90 crores and a 0.3947% cash dividend (including tax) totaling Rs. 52.10 lakhs.
The financial statements will be submitted to Nepal Rastra Bank for approval, and the dividend will be distributed once the approval is granted and the company holds its Annual General Meeting (AGM).
(Prepared by Srija Khanal)
Comment