Economic Digest: Nepal’s Business News in a Snap « Khabarhub
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Economic Digest: Nepal’s Business News in a Snap

20 June 2024  

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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), on Wednesday, closed with a modest gain of 1.27 points, ending at 2078.76 points. Trading was active, nearing Rs 3.5 billion, with 7,209,757 shares exchanged. Among listed companies, 135 saw their share prices rise, while 104 witnessed declines; 8 remained unchanged.

Sector-wise, the Finance sector notably increased by 58.87 points, contrasting with the Trading sector’s decline of 38.78 points. Concurrently, gold prices remained stable, while silver prices dipped slightly, reflecting potential market shifts.

In other economic news, Kakadbhitta and Kailali Customs Offices reported revenue collections of Rs 12.93 billion and Rs 7.32 billion respectively, with Kakadbhitta exceeding its target and Kailali achieving 63.21% of its goal.

Additionally, Nepal’s Foreign Direct Investment surged to Rs 44.40 billion, buoyed by a successful investment summit and significant inflows through the automatic route, particularly in small-scale industries and tourism.

NEPSE sees modest gain with transactions nearing Rs 3.5 billion on Wednesday

The Nepal Stock Exchange (NEPSE) saw a modest increase by the end of Wednesday’s trading session, closing up by 1.27 points at 2078.76 points.

The trading volume was approximately Rs 3.5 billion, with 7,209,757 shares exchanged, amounting to Rs 3.404 billion.

In Wednesday’s session, the share prices of 135 companies increased, while 104 companies saw a decline in their share prices. The share prices of 8 companies remained unchanged.

The Sensitive Index rose by 0.55 points, the Float Index by 0.16 points, and the Sensitive Float Index by 0.23 points. Out of 13 sectors, 6 experienced gains, while 7 saw declines.

The Finance sector saw the highest increase, rising by 58.87 points, whereas the Trading sector experienced the largest drop, falling by 38.78 points.

Gold prices hold steady, silver sees slight decline

The price of gold showed no significant movement in the Nepali domestic market, according to the Federation of Nepal Gold and Silver Dealers’ Association. The price of fine gold remained unchanged at Rs 142,200 per tola over both Tuesday and Wednesday, while standard gold also held steady at Rs 141,500 per tola during the same period.

Conversely, silver prices saw a slight decrease, dropping by Rs 10 per tola to settle at Rs 1,805 today. This stability in gold prices suggests a period of price inertia, likely influenced by stable demand or balanced market conditions.

The decline in silver prices indicates potential shifts in market dynamics or alterations in supply and demand trends within the precious metals sector.

Kakadbhitta Customs exceeds revenue target

The Mechi Customs Office in Kakadbhitta has collected over Rs 12.93 billion in revenue during the first 11 months of this fiscal year, achieving 77.57% of its target. Imports have slightly dropped by 3.61%, while exports have risen by 10.76%.

Key export increases include chhurpi (+65.29%), plywood (+56.33%), and ginger (+35.45%), among others. However, cardamom exports declined by 2.61% and tea by 13.42%. Imports of diesel, aviation fuel, vegetables, jute, gypsum, clothing, and LPG decreased compared to the previous fiscal year.

FDI surges to Rs 44.40 billion

Foreign Direct Investment (FDI) in Nepal has surged, reaching Rs 44.40 billion by mid-June of FY 2023/24, marking a significant increase from Rs 34.58 billion during the same period last year.

The government’s investment summit this year has boosted FDI inflows, with 359 proposals approved so far. In Jestha alone, FDI approvals totaled Rs 3 billion, expected to create 20,146 jobs this year.

The automatic route for FDI facilitated Rs 11.81 billion in investments, with a total of 90 proposals received. Overall, Nepal has attracted nearly Rs 500 billion in FDI, focusing heavily on small-scale industries and tourism sectors.

Appointment process for SEBON Chair to continue despite three candidates’ boycott

The appointment process for the chairperson of the Nepal Securities Board (SEBON) will continue despite three shortlisted candidates boycotting the interview for the second time.

The Ministry of Law, Justice, and Parliamentary Affairs advised that the process cannot be halted, allowing the recommendation committee to proceed with the appointment. On Sunday, the recommendation committee had invited five shortlisted candidates for interviews and presentations.

Of the five shortlisted candidates, only Santosh Narayan Shrestha and SEBON Executive Director Mukti Shrestha participated. Rastriya Beema Samiti’s former Chairman Chiranjibi Chapagain, Nepal Stock Exchange (NEPSE) CEO Krishna Bahadur Karki, and SEBON Executive Director Navaraj Adhikari did not attend the scheduled interview.

Kailali Customs Office collects Rs 7.32 billion in revenue

Kailali Customs Office in Dhangadhi collected Rs 7.32 billion in revenue during the first 11 months of FY 2023/24. This includes Rs 2.77 billion from customs duty, Rs 2.95 billion from value-added tax, Rs 189.5 million from excise duty, and Rs 1.40 billion from other categories.

The office has achieved 63.21% of its annual revenue target of Rs 11.58 billion. Despite consistent revenue collection monthly, challenges persist with stagnant imports and minimal exports, affecting revenue prospects.

Lalitpur Metropolis to establish ‘Project Bank’, ‘Labour Bank’

Lalitpur Metropolitan Chas introduced a ‘project bank’ and ‘labor bank’ in its 2024/25 policies and programs. Mayor Chiri Babu Maharjan announced that future annual budgets and programs will select projects from the ‘project bank’ and follow a mid-term expenditure framework.

A ‘program implementation action plan’ and ‘procurement plan’ will also be mandatory for effective budget execution. Projects deemed infeasible will be discontinued.

Additionally, there will be coordination for constructing overhead bridges on the Lalitpur ring road and regulating tipper and goods-carrier vehicles from corridor roads.

Depositors’ savings returned from three troubled cooperatives

The Ministry of Land Management, Cooperative and Poverty Alleviation has intensified efforts to return depositors’ money from troubled cooperatives. In the first phase, deposits from Kuber Saving and Credit Cooperative, Chartered Saving and Credit Co-Operative Limited, and Standard Multi-Purpose Cooperative have been returned. Chairperson Mohan Gautam credited the success to Minister Balram Adhikari’s coordination. Efforts are ongoing to resolve issues with 17 other distressed cooperatives.

Thursday’s Forex

The Nepal Rastra Bank’s updated foreign currency exchange rates for Thursday indicate a general increase in value for several major currencies, including the US dollar, Euro, Pound, Australian dollar, and Dinar.

The US dollar’s buying and selling rates have risen slightly from 133.16 and 133.76 rupees to 133.24 and 133.84 rupees, respectively. Similar minor increases are seen for the Euro, British Pound, Australian dollar, and Kuwaiti dinar, reflecting a consistent upward trend in exchange rates for these currencies.

(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.

Publish Date : 20 June 2024 08:53 AM

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