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) closed lower, falling by 31.31 points (1.15%) to 2,680.44, amid significant volatility and cautious investor sentiment, despite high trading volume on Thursday.
Meanwhile, gold prices continued their upward trend for the fourth consecutive day, rising to Rs 164,000 per tola, signaling renewed investor confidence.
On the fiscal front, Nepal’s revenue collection has risen by 17% in the first quarter of FY 2024/25, though it still falls short of the target. NEPSE also published a list of 112 companies eligible for trading by stock dealers, enhancing market liquidity and transparency.
Bottlers Nepal (Terai) announced a Rs 50 per share dividend for its shareholders, while SEBON added IPO proposals from four companies, including Bandipur Cable Car and Akama Hotel.
The government also launched a Rs 16.64 billion road network improvement program with World Bank support to enhance infrastructure in Madhes, Karnali, and Sudurpaschim provinces.
In agriculture, rice production in Chitwan has decreased due to plant diseases and insect infestations, with output falling to 112,092.48 metric tonnes this year.
NEPSE closes lower, declining 1.15 percent
The Nepal Stock Exchange (NEPSE) experienced a notable decline of 31.31 points, or 1.15%, closing at 2,680.44 on Thursday, following a modest gain in the previous session.
The market showed significant volatility, opening at 2,711.56 and fluctuating between an intraday low of 2,676.25 and a high of 2,722.59.
Despite the market’s fluctuations, the total turnover amounted to Rs. 8.25 Arba, with over 18 million shares traded across 314 companies in nearly 85,000 transactions.
The drop in NEPSE points suggests cautious investor sentiment, despite relatively high trading volume, indicating potential market uncertainty or profit-taking after recent gains.
Gold prices climb for fourth straight day
Gold prices in the Nepali market have continued their upward trajectory for the fourth consecutive day, reflecting a steady recovery from recent declines.
On Wednesday, gold prices rose by Rs 900, reaching Rs 163,000 per tola, and climbed further by Rs 1,000 to Rs 164,000 per tola today.
This follows a Rs 2,000 increase on Tuesday and a Rs 1,000 rise on Monday. The recent gains come after a significant drop from the all-time high of Rs 171,000 per tola on October 31, with prices briefly settling around Rs 160,000.
The recent upward momentum suggests renewed investor confidence in gold, despite earlier fluctuations, while silver prices have remained unchanged at Rs 1,950 per tola, indicating a more stable market for the precious metal.
Finance Ministry reports uptick in revenue collection
Revenue collection in the first quarter of the current Fiscal Year 2024/25 has increased by 17 per cent compared to the corresponding period of the previous fiscal year.
As per the details on revenue collection presented in a meeting of the Ministry of Finance, Higher Management Committee today, revenue of Rs 276 billion was collected in the first quarter of the Fiscal Year 2023/24.
Revenue of Rs 323.24 billion has been raised in the first four months of the current fiscal year.
However, the government has not been able to collect the revenue as per the target.
NEPSE Publishes List of Tradable Companies for Stock Dealers
The Nepal Stock Exchange (NEPSE) published a list of 112 companies deemed eligible for trading by stock dealers for the fiscal year 2081/82.
This list was prepared in compliance with Section 3(2) of Chapter 2 of the Securities Dealer Operations Procedure, 2077, ensuring that the selected companies meet the necessary criteria for inclusion.
By providing this list, NEPSE offers stock dealers a structured framework to engage in trading activities, fostering a regulated and transparent environment in the market.
This move is likely to enhance market liquidity and help streamline trading operations, benefiting both dealers and investors by maintaining high standards of market conduct.
Bottlers Nepal (Terai) announces Rs. 50 per share dividend
Bottlers Nepal (Terai) Limited has announced a cash dividend of Rs. 50 per share for its shareholders, based on equity shares valued at Rs. 100 each.
The announcement was made following a Board of Directors meeting on November 20, 2024, for the fiscal year 2080/81. The exact book closure date for the dividend will be communicated in the near future.
As of November 20, 2024, the last traded price of Bottlers Nepal (Terai) shares was Rs. 14,350.00.
SEBON adds IPO proposals
The Securities Board of Nepal (SEBON) has included the IPO proposals of three companies from the hotel and tourism sector, as well as one from the investment sector, in its pipeline.
Bandipur Cable Car and Tourism Limited has submitted a proposal to issue 3,060,000 shares to both the local and general public, aiming to raise Rs. 22.5 crores.
The application was filed on Jestha 22, 2081, with Nepal SBI Merchant Banking Limited designated as the issue manager.
Similarly, Akama Hotel Limited has proposed an IPO of 4,500,000 shares, with a face value of Rs. 50 each, to raise Rs. 22.5 crores.
This proposal was submitted on Ashadh 26, 2081, with Sanima Capital Limited appointed as the issue manager.
Road network improvement programme launched
The government launched a five-year regional and local road improvement program under the Ministry of Urban Development, aiming to enhance the road network in Madhes, Karnali, and Sudurpaschim provinces at a cost of Rs 16.64 billion.
This initiative is part of the broader effort to improve infrastructure following the introduction of federalism and the decentralization of responsibilities between federal, provincial, and local governments.
The program, supported by a World Bank loan, seeks to improve regional roads, provide all-season road access to local centers without road connectivity, and strengthen the capacity of local and provincial governments. An MoU for the project was signed at a ceremony today.
Rice yield decreases in Chitwan
Rice harvest has decreased in Chitwan this year compared to the previous year, according to the Agriculture Development Office.
The rice production in the district was 112,092.48 metric tonnes this year. Rice production in the district was 114,269.4 metric tonnes last year.
Rice was cultivated on 27,270 hectares land this year. The Office stated that the productivity has also decreased this year.
The productivity is 4.12 metric tonnes per hectare. According to the Office, the production fell due to plant diseases like dirty pinnacle, rice leaf folder, pinnacle blight and insect infestation in some places of east Chitwan.
(Prepared by Srija Khanal)
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