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) showed a minor increase, closing at 2488.09 points amid overall volatility.
Despite gains in the Manufacturing group, other indices like the Sensitive Index and Float Index experienced declines.
Trading was active with shares from 309 companies changing hands, contributing to a trading volume nearing Rs 14 billion.
Meanwhile, the Nepal Chamber of Commerce advocated for economic reforms, proposing a flexible monetary policy and addressing issues such as reduced credit flow and restrictive lending practices.
NEPSE sees minor gain, trading volume nears Rs 14 billion
The Nepal Stock Exchange (NEPSE) saw a modest increase despite notable volatility, continuing its recent bullish trend with a slight correction. NEPSE gained 2.15 points, reaching 2488.09 points.
However, indices like the Sensitive Index, Float Index, and Sensitive Float Index declined during the trading session.
Trading was active with shares from 309 companies changing hands. Out of the 13 groups, 7 saw their stock prices rise, while 6 groups experienced declines.
The Manufacturing group had the most significant increase, rising by 160.07 points to 7542.58 points. Conversely, the Development Bank group saw the largest decrease, dropping by 31.58 points to 4945.28 points. The Investment group had the smallest decline, down by 0.42 points to 90.17 points.
Overall, 115 companies saw their share prices increase, contributing to a trading volume of approximately Rs 14 billion.
Nepal Chamber of Commerce advocates for flexible monetary policy
The Nepal Chamber of Commerce (NCC) on Monday presented 43 recommendations to Prime Minister KP Oli aimed at addressing economic concerns.
It highlighted issues including reduced credit flow to the private sector due to recent Nepal Rastra Bank measures and proposed solutions such as adopting a more flexible monetary policy with a permanent single-digit interest rate and a 15 percent credit expansion target to support a 6 percent economic growth rate.
It also suggested suspending working capital loan guidelines, easing real estate lending restrictions, eliminating limits on share mortgage loans, reducing customs rates, eliminating the bond system for imports, and minimizing interference from the Department of Revenue Investigation.
ERC urges NEA to restore electricity connections for six manufacturers
The Electricity Regulatory Commission (ERC) pressured the Nepal Electricity Authority (NEA) to reconnect electricity lines for six manufacturers, citing the Electricity Consumer Welfare Protection Directive.
This action follows a conflict over outstanding bills for dedicated feeder use, with the NEA initially defying verbal orders from Prime Minister KP Sharma Oli. The government, leveraging the ERC’s directive, has intervened to align NEA’s actions with its policy.
Despite the prime minister’s directive to restore power immediately, NEA’s board members, including Energy Minister Deepak Khadka, opted to withhold reconnection pending formal procedures, amidst ongoing disputes over tariff charges for dedicated feeders and trunk lines used during load shedding periods.
Gold prices surge
The domestic price of gold increased by Rs 100 per tola, reaching Rs 146,300 for fine gold and Rs 145,600 for standard gold, as reported by the Nepal Gold and Silver Dealers’ Association.
This marked an increase from Sunday’s prices of Rs 146,200 per tola for fine gold. Simultaneously, silver was priced at Rs 1,790 per tola.
It is important to note that a tola equates to approximately 11.66 grams.
This uptick in gold prices reflected ongoing market dynamics influenced by factors such as global demand trends, inflation expectations, and currency fluctuations, which collectively impacted commodity pricing strategies and investor sentiments in the precious metals sector.
CNP reports record visitor numbers
Chitwan National Park, Nepal’s oldest wildlife sanctuary, welcomed over 300,000 visitors in the past fiscal year, marking its highest footfall ever. However, the visitor demographics have shifted, with nearly 58% being domestic tourists.
While tourism entrepreneurs celebrate increased revenue, conservationists express concerns over potential threats to wildlife due to rising numbers.
The park, renowned for its biodiversity including tigers and one-horned rhinos, faces challenges such as habitat degradation and increased human-wildlife interaction. Conservationists emphasize the urgent need for effective conservation measures amid growing tourist activities.
ASOCIO Summit in Kathmandu Galvanizes Nepal’s IT Sector
ASOCIO’s Plenary Meeting in Kathmandu on July 13, 2024, brought together members from across Asia and Oceania to discuss IT industry growth, awards, and plans for the organization’s 40th anniversary.
ASOCIO President Dr. Brian Shen pledged to bolster Nepal’s IT sector through policy frameworks and investment support, echoed by CAN Federation President Ranjeet Kumar Poddar who highlighted the summit’s importance for fostering innovation and collaboration.
The meeting reviewed ASOCIO’s robust financial standing, proposed a budget for anniversary celebrations, introduced new award categories, and announced the Smart City Summit Nepal 2025, slated for May 2, 2025, to focus on urban development through technology.
Forex: US dollar shows a decrease in value
The Nepal Rastra Bank (NRB) released Tuesday’s foreign currency exchange rates, showing a decrease in the value of the US dollar. This has led to increases in the values of other currencies such as the Euro, Pound, and Dinar.
Specifically, the buying rate for 1 US dollar today is 133 rupees 56 paisa, and the selling rate is 134 rupees 16 paisa, compared to yesterday’s rates of 133 rupees 57 paisa and 134 rupees 17 paisa respectively.
Similarly, the Euro’s buying rate today is 145 rupees 39 paisa, selling at 146 rupees 05 paisa, while the Pound’s rates are 172 rupees 73 paisa for buying and 173 rupees 51 paisa for selling. The Australian dollar and Kuwaiti dinar have also seen slight adjustments in rates compared to yesterday, with the Bahraini dinar showing a minor increase.
(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.
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