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) experienced a notable decline on Monday, closing at 2639 after dropping 57.99 points, accompanied by a decrease in market turnover from 8.18 billion NPR to 5.90 billion NPR.
With only 23 out of 245 listed companies recording gains, the market reflected a bearish sentiment as every sector suffered losses, particularly the Finance sector, which fell by 3.38%.
In contrast, gold and silver prices in Nepal reached new highs, with gold climbing to Rs 165,606 per tola and silver to Rs 2,095 per tola, driven by rising international market values amidst geopolitical tensions and economic uncertainties.
Meanwhile, tea exports surged by 36% in the first quarter, valued at Rs 1.71 billion, largely due to decreased production in India, while cardamom exports saw a significant decline.
Additionally, Hyundai Motor Company achieved a significant milestone by ranking 30th in Interbrand’s Best Global Brands for 2024, reflecting a 63% increase in brand value over five years, driven by strategic initiatives and successful product launches.
Meanwhile, the Securities Board of Nepal (SEBON) approved Balephi Hydropower Limited’s plan to issue 100% rights shares, aiming to double its capital to Rs 3.65 billion, highlighting ongoing financial developments in the energy sector.
NEPSE plummets to 2639 points
On Monday, the Nepal Stock Exchange (NEPSE) fell by 57.99 points, closing at 2639, while market turnover decreased from 8.18 billion NPR to 5.90 billion NPR.
Out of 245 listed companies, only 23 saw their stock values increase, whereas 221 experienced declines.
Every sector recorded losses, with Finance suffering the most at 3.38%. Other sectors such as Banking, Development Bank, and Hotel & Tourism also saw significant drops of 2.30%, 1.78%, and 1.66%, respectively.
The top contributors to turnover were Himalayan Reinsurance, Ngadi Group, Kumari Bank, Goodwill Finance, and Nepal Finance, reflecting a bearish market sentiment amid widespread investor concern.
Gold price sets new record
Gold prices in the Nepali market have increased to Rs 165,606 per tola, rising by Rs 600 from the previous day’s Rs 165,000.
Silver has also reached a new high, now priced at Rs 2,095 per tola, up from Rs 2,075.
These price hikes are attributed to rising international market values, primarily influenced by ongoing conflict in the Middle East and uncertainties related to the upcoming U.S. elections, as noted by the Nepal Gold and Silver Traders Federation.
This situation reflects broader geopolitical and economic trends impacting precious metal markets.
Tea worth Rs 1.71 billion exported in first quarter
In the first quarter of the current fiscal year, tea exports from the Mechi Customs Office rose by 36%, reaching 6,426 metric tonnes valued at Rs 1.71 billion, a more than 50% increase in price compared to last year.
The rise in Nepali tea exports is attributed to decreased production in India, with hopes for further growth if the government facilitates the process. Conversely, cardamom exports fell by 49%, from 1,525 to 783 metric tonnes.
While exports of plywood, broom grass, and veneer sheets saw significant increases, those of ginger, Chhuri, iron, and vegetables declined.
Hyundai Motor ascends to Global Top 30 spot
Hyundai Motor Company has achieved a significant milestone, reaching a brand valuation of $23 billion and ranking 30th in Interbrand’s Best Global Brands for 2024.
This reflects a 63% increase in brand value over the past five years and marks the second consecutive year of improved rankings, moving up six spots from 36th.
Contributing factors to this growth include global initiatives aligned with the brand vision “Progress for Humanity,” as well as the success of the IONIQ 5 N, which won the World Performance Car award and received high marks in the J.D. Power U.S. APEAL Study.
Hyundai’s strategic initiatives have further enhanced its global brand influence.
SEBON approves 100 percent right shares of Balephi Hydropower
The Securities Board of Nepal (SEBON) has sanctioned Balephi Hydropower Limited’s (BHPL) rights offering plan.
The company will be issuing 100% rights shares valued at Rs. 1.82 Arba by offering 18,279,701 units of rights shares (1:1) to its current shareholders.
With a current paid-up capital of Rs. 1.82 billion, the company’s capital will rise to Rs. 3.65 billion following the proposed rights share issuance of 1.82 crore units.
NIMB Ace Capital Limited has been designated as the issue manager. At the time of writing, BHPL’s shares closed at Rs. 670.
Comment