KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The NEPSE index fell by 47.44 points (1.72%) to close at 2,697.91 on Sunday, following a slight increase the previous day, amidst significant market fluctuations.
Despite the decline, trading remained active, with 315 stocks traded and an overall turnover of Rs. 8.18 billion.
Concurrently, gold prices in Nepal soared to Rs. 165,000 per tola, driven by international market trends influenced by geopolitical tensions and uncertainties surrounding U.S. elections.
In Karnali province, 1,795 small industries were registered this fiscal year, while commercial banks reported increased profitability, although some development banks struggled.
The Tanahun hydropower project is also progressing well, with over 58% completion reported.
Additionally, the tourism sector mourns the loss of prominent entrepreneur Basanta Misra, who passed away at 71.
NEPSE Index declines by 47.44 points
The NEPSE index experienced a notable decline of 47.44 points, or 1.72%, closing at 2,697.91 on Sunday.
This downturn follows a minor increase of 2.47 points in the previous session, indicating a shift in market sentiment.
Trading commenced at 2,733.35, but the index fluctuated significantly, reaching a low of 2,689.46 and a high of 2,748.78.
A total of 315 stocks were traded through 88,714 transactions, resulting in an overall turnover of Rs. 8.18 billion with 20,868,919 shares exchanged, highlighting active trading despite the day’s negative performance.
Market uncertainty drives gold to new heights
Following a surge in the international market, the price of gold in Nepal has been consistently setting new records.
On Sunday, the price of gold in the Nepali market reached an astonishing Rs 165,000 per tola, marking an increase of Rs 600 from the previous day (Friday).
In the international market, gold is currently priced at 2,721 US dollars per ounce.
This rise in price abroad has been reflected in Nepal as local rates adjust accordingly.
According to Reuters, the gold price surge can be attributed to two primary factors: the ongoing conflict in the Middle East and uncertainties surrounding the upcoming American elections.
Reports suggest whenever international tensions and conflicts rise, demand for gold increases.
Over 1,700 new industries registered in Karnali
In the current fiscal year, 1,795 small industries have been registered in 10 districts of Karnali province.
On the other hand, 410 such industries have been abrogated.
According to the Directorate of Industry and Consumer Protection of Karnali Province, compared to the registration and renewal, about a quarter of the industries have been abrogated in the fiscal year 2080-81.
Similarly, 166 industries were annulled in Surkhet, 81 in Jumla, 37 in Kalikot, 35 in Salyan, 28 in Dailekh and Jajarkot, 22 in Rukum Paschim, seven in Humla and six in Mugu.
Commercial and Development banks see profit gains
The latest financial report from the Nepal Rastra Bank indicates a positive trend in the profitability of both commercial and development banks up to Bhadra in the fiscal year 2081/82.
Commercial banks collectively achieved a net profit of Rs. 17.69 Arba, with Nabil Bank leading at Rs. 1.66 billion, while other key players like Global IME Bank and Nepal Investment Mega Bank also performed strongly.
However, Machhapuchchhre Bank lagged significantly, recording the lowest profit. In the development banking sector, a combined net profit of Rs. 1.64 billion was reported, although six out of 17 banks faced losses.
Muktinath Bikas Bank emerged as the top performer, highlighting a mixed landscape where a few banks thrived while others struggled, underscoring the need for strategic improvements within the sector.
Tourism entrepreneur Basanta Misra passes away
Tourism entrepreneur Basanta Misra has passed away at the age of 71 due to a dengue infection at Norvic Hospital in Thapathali.
Mishra’s family said that his body was taken from the hospital to his residence in Kupandol. He will be cremated today at Pashupati Aryaghat.
Mishra was a significant figure in Nepal’s tourism sector, having contributed greatly to its development.
As the Chairman of the Temple Tiger Group of Companies, he had been active in the industry since the 1970s.
Tanahun hydropower project sees above 50 percent progress
The Tanahun hydropower project, with a capacity of 140 MW, has achieved a 58.1 percent progress.
The work on the hydel is being carried out in three packages, and 52.07 percent of the financial progress has been achieved, said project chief Shyamji Bhandari.
Likewise, 35 percent of progress has been made in the construction of structures including dams under package 1.
Fifty-nine percent progress in the construction of power plants under Package 2 and 73.5 percent of the construction of transmission lines under package-3.
The goal is to complete the project in the next two years, by Asar 2083 BS.
(Prepared by Srija Khanal)
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