KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The NEPSE index experienced a modest decline of 0.68% on Thursday, closing at 2,627.14 points amid a backdrop of fluctuating trading activity.
This drop, part of a larger trend following a recent dip in market confidence, highlights the ongoing volatility in Nepal’s stock market.
Despite the overall downturn, the hydropower sector managed to close positively, reflecting some resilience amidst broader market challenges. In the commodities sector, gold prices retreated after a week of gains, dropping to Rs 166,000 per tola, while silver also fell, signaling a potential shift in investor sentiment.
On the international front, FNCCI President Chandra Prasad Dhakal’s appeal for foreign investment underscores the government’s efforts to attract capital, bolstered by recent legislative reforms.
Meanwhile, Finance Minister Bishnu Poudel’s discussions with ADB and World Bank officials promise potential collaborations to enhance Nepal’s development initiatives.
The commitment to improving the aviation sector, as announced by Tourism Minister Badri Prasad Pandey, signals proactive steps towards enhancing connectivity and tourism, which are vital for economic recovery and growth.
NEPSE drops 0.68% to 2,627.14
The NEPSE index on Thursday fell by 0.68%, closing at 2,627.14 points, down 18.25 points from the previous day.
This decline follows a drop of 20.41 points in the last trading session.
During the day, the index reached a low of 2,614.65 and a high of 2,650.18. A total of 317 stocks were traded in 61,785 transactions, with 12,283,623 shares changing hands, resulting in a turnover of Rs. 5.41 billion.
The market capitalization was Rs. 4.17 trillion, while the float market capitalization stood at Rs. 1.47 trillion. Only the hydropower sector closed positively.
Gold prices drop after week of increases
The price of gold, which had been rising continuously for the past week and setting daily high records, declined on Thursday.
Specifically, the price dropped by Rs 700 per tola, bringing it to Rs 166,000.
This marked a decrease from Wednesday’s price of Rs 166,700.
Silver prices also fell, reversing yesterday’s increase of Rs 35 per tola.
FNCCI President Dhakal appeals to global community for investment in Nepal
Chandra Prasad Dhakal, President of the Federation of Nepalese Chamber of Commerce and Industries (FNCCI), has called on the international community to invest in Nepal.
Currently in the U.S. for the annual meetings of the World Bank and International Monetary Fund (IMF), Dhakal emphasized the conducive environment for foreign investment and recent legislative amendments aimed at facilitating such investments.
During a meeting with high-ranking officials from these organizations, Dhakal pledged FNCCI’s commitment to supporting foreign investors interested in Nepal.
Finance Minister Paudel discusses collaborations with ADB and World Bank
During his visit to Washington, D.C. for the annual meetings of the World Bank Group and IMF, Nepal’s Finance Minister Bishnu Poudel met with ADB Vice President Yingming Yang.
They discussed ADB’s current capital and potential collaborations with Nepal, with Poudel praising the ADB’s support for construction projects and thanking them for a $3 million grant for flood and landslide survivors.
Yang also outlined the ADB’s new partnership strategy. Additionally, Poudel met with World Bank Group Executive Director Wempi Saputra, who pledged to increase WBG’s involvement in Nepal’s development efforts, and with IFC Vice President Riccardo Puliti.
Tourism Minister Pandey bats for improving Nepal’s airlines sector
Minister for Culture, Tourism and Civil Aviation Badri Prasad Pandey has committed to enhancing Nepal Airlines and addressing challenges in the aviation sector.
He announced initiatives to identify and resolve existing issues, including the formation of a committee aimed at ensuring safe and reliable civil aviation.
Pandey introduced a bill to consolidate and amend the Civil Aviation Authority of Nepal and another to establish the Air Services Authority, separating regulatory and service functions.
He also revealed an action plan approved by the Council of Ministers to incentivize international flights from Gautam Buddha International Airport and Pokhara Regional International Airport. Starting November 9, Jazeera Airways will operate three international flights weekly, while Fly Dubai will provide one daily international flight from Gautam Buddha International Airport.
(Prepared by Srija Khanal)
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