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) ended the week with a notable 3.19% decline, reflecting ongoing market volatility.
This drop follows a 1.92% loss from the previous week, indicating a period of instability in the market.
Despite reaching a high of 2,684.32, the NEPSE Index closed lower at 2,596.82, with significant fluctuations throughout the week.
The market turnover stood at Rs 19.30 billion, highlighting the continued trading activity despite the decline.
This trend of volatility in the stock market mirrors broader economic uncertainties, impacting investor sentiment.
In other news, Foreign Minister Dr. Arzu Rana Deuba’s calls for increased Indian investment and expanded air connectivity between Nepal and India underscore efforts to boost Nepal’s economy.
Additionally, declining gold prices highlight current market pressure, while developments in the banking sector, such as dividend proposals from Garima Bikas Bank and Lumbini Bikas Bank, reflect positive corporate moves in challenging times.
NEPSE ends week with 3.19% decline
NEPSE ended the week with a 3.19% decline and a turnover of Rs 19.30 billion.
The market was open for four days this week, as Sunday was a public holiday. The NEPSE Index closed at 2,596.82, dropping 85.47 points (3.19%).
Last week, the index had ended at 2,682.29, reflecting a 1.92% loss compared to the prior week.
During this week, the index reached a high of 2,684.32 and a low of 2,593.18, resulting in a volatility of 91.14 points. In the previous week, the index had experienced a volatility of 75.31 points.
The largest intraday loss was 51.38 points on Monday, accompanied by a turnover of Rs 5.93 billion. The total turnover for the week amounted to Rs 19.30 billion.
Foreign Minister urges Indian entrepreneurs to invest in Nepal
Foreign Minister Dr Arzu Rana Deuba has called on Indian entrepreneurs to explore investment opportunities in Nepal, particularly in sectors like energy, infrastructure development, agriculture, tourism, and information technology.
Her remarks came during the Indo-Nepal Economic Conference, which was organized by Kathmandu University and India’s Egrow Foundation in New Delhi today.
Rana stated that Nepal has liberalized its foreign investment policies, creating an environment conducive to high returns.
Gold price witnesses decline
Gold prices have experienced a decline on Friday, dropping by Rs 500 per tola, continuing a downward trend that has persisted for several weeks.
Over the past month and a half, the price of gold has fallen by a significant Rs 22,500 per tola.
Gold on Friday was priced at Rs 148,500 per tola, while silver saw a reduction of Rs 20 per tola, bringing its price to Rs 1,760.
Despite some fluctuations earlier in the week, including a temporary increase of Rs 600 per tola over two days, the overall momentum has been bearish, with larger declines observed, such as a drop of Rs 2,200 on Sunday and Rs 1,700 on Thursday.
This consistent downward pressure on gold and silver prices highlights the current volatility in the market.
Foreign Minister asks India for additional air routes for Pokhara and Lumbini airports
Foreign Minister Dr Arzu Rana Deuba has called for additional air routes between Nepal and India, aiming to enhance connectivity and promote tourism.
Addressing the Indo-Nepal Economic Conference in New Delhi on Friday, Rana put emphasis on the importance of expanding air travel to fully utilize the two new international airports in Nepal—Pokhara and Lumbini.
“We have built two international airports in Pokhara and Lumbini, both of which are significant cities. Pokhara is a major tourist destination, and Lumbini is the birthplace of Lord Gautam Buddha,” Rana said.
Garima Bikas Bank proposes 5% cash dividend
Garima Bikas Bank Limited has announced a proposal to distribute a 5% cash dividend, totaling Rs. 28.40 Crores, for the fiscal year 2080/81.
This decision was made during the 316th meeting of the bank’s board of directors, held on Poush 05, 2081.
The dividend, based on the bank’s paid-up capital of Rs. 5.68 billion, will be subject to approval from the central bank and confirmation at the company’s upcoming AGM.
Lumbini Bikas Bank Announces 7% Dividend for FY 2080/81
Lumbini Bikas Bank Limited has proposed a 7% dividend totaling Rs. 24.62 Crores for the fiscal year 2080/81.
The proposal, made during the 490th meeting of the bank’s board on Poush 5, 2081, includes a 3% bonus share issue worth Rs. 10.55 Crores and a 4% cash dividend (including tax) amounting to Rs. 14.07 Crores.
The proposal, based on the bank’s paid-up capital of Rs. 3.51 billion, is subject to approval by Nepal Rastra Bank and will be finalized at the company’s upcoming AGM.
New tourism policy in offing: Tourism Minister
Minister for Culture, Tourism and Civil Aviation, Badri Prasad Pandey, has said that a new policy on tourism is at final stage in the making.
His statement highlights the government’s efforts to modernize and formalize the tourism sector in Nepal through a new policy and the drafting of a Tourism Act.
He underscores the gap in tourism governance since the country adopted its federal structure, indicating the necessity for a comprehensive policy to address the evolving needs of the sector.
The new policy, now in its final stages, is being shaped through consultations with relevant stakeholders, signaling an inclusive approach. Additionally, the Minister’s mention of the “Visit Nepal Decade” campaign, scheduled from 2025 to 2035, reflects an ambitious long-term vision to boost Nepal’s tourism industry.
(Prepared by Srija Khanal)
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