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Economic Digest: Nepal’s Business News in a Snap


26 July 2024  

Time taken to read : 6 Minute


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KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.

On Thursday, the NEPSE Index rose by 32 points to 2,568.11, reflecting a 1.26 percent increase following a previous decline.

The day’s trading saw the index fluctuate between 2,518.47 and 2,572.88 points, with a turnover of Rs. 14.13 billion from 320 stocks and 159,757 transactions. The Microfinance Index notably advanced by 6.83 percent.

Concurrently, gold prices in Nepal plummeted significantly, with fine gold dropping by Rs 2,400 to Rs 145,000 per tola, influenced by global market fluctuations.

Additionally, Kakadbhitta customs reported an Rs 81 million surge in herb exports, including significant quantities of chiraito and other herbs.

Meanwhile, Nepal’s petroleum import costs decreased by Rs 11.07 billion in FY 2023/24, despite higher import volumes, due to lower international fuel prices.

NEPSE index rises by 32 points to 2,568.11; microfinance sector shines

The NEPSE Index on Thursday climbed by 32 points to finish at 2,568.11, marking a 1.26 percent increase from the previous day.

This comes after a drop of 27.32 points the day before.

The session started with the index at 2,540.14 points, fell to an intraday low of 2,518.47 points, and reached a high of 2,572.88 points before ending at its final value.

Throughout the trading day, 320 stocks were exchanged in 159,757 transactions, totaling 35,594,868 shares and generating a significant turnover of Rs. 14.13 billion.

The market capitalization was Rs. 4.074 trillion, with a float market capitalization of Rs. 1.403 trillion. The Microfinance Index led with a notable gain of 6.83 percent.

Gold prices in Nepal decline significantly

The domestic gold market on Thursday experienced a significant decline in prices, with fine gold falling by Rs 2,400 per tola to reach Rs 145,000, and standard gold dropping to Rs 143,000 per tola, as reported by the Nepal Gold and Silver Dealers’ Association.

This marked a notable decrease from the previous trading day when fine gold had been priced higher at Rs 147,400 per tola.

The sudden drop in gold prices reflected ongoing fluctuations in global and regional markets, influenced by factors such as changes in international gold prices, local demand dynamics, and currency exchange rates.

Such price movements not only impacted investors and consumers but also highlighted the sensitivity of commodity markets to economic conditions and market sentiment.

Kakadbhitta customs reports Rs 81 million herb export surge in FY 2023/24

During the fiscal year 2023/24, herbs worth approximately Rs 81 million were exported through the Kakadbhitta customs checkpoint.

The Quarantine Office at Kakadbhitta reported that the exported herbs included chiraito, rittha, majitho, and satibayer.

Specifically, 160 metric tonnes of chiraito, valued at Rs 48 million, were exported during this period.

Farmers from districts such as Taplejung, Panchthar, Ilam, Tehrathum, Sankhuwasabha, Dhankuta, and Bhojpur are actively involved in the commercial cultivation of chiraito.

Additionally, the exports comprised 83 metric tonnes of majitho worth Rs 16.5 million, 151 metric tonnes of rittha worth Rs 9.69 million, and 24 metric tonnes of chutro valued at Rs 1.2 million in the last fiscal year, as reported by the Office.

Nepal’s petroleum import costs decline by Rs 11.07 billion

Nepal’s petroleum import bill decreased by Rs 11.07 billion in the last fiscal year despite a rise in import volumes of fossil fuels.

According to records from the Department of Customs (DoC), petroleum product imports totaled Rs 267.68 billion in FY 2023/24, down from Rs 278.75 billion in FY 2022/23, marking a four percent decline in expenses.

Diesel imports decreased by approximately Rs 10 billion, with imports totaling Rs 143.97 billion compared to Rs 153.76 billion the previous year.

Cooking gas imports also declined from Rs 58.15 billion to Rs 55.61 billion, while petrol imports increased slightly to Rs 68.10 billion from Rs 66.84 billion.

Manoj Thakur, spokesperson for the Nepal Oil Corporation (NOC), attributed the reduction in import costs to lower fuel prices in the international market, despite increased import volumes.

Forex rates: Euro up, US Dollar, Qatari Riyal, and British Pound down

Nepal Rastra Bank (NRB) announced the foreign currency exchange rates for today (Friday), showing varied changes across different currencies.

The Euro’s exchange rate has increased, while the rates for the US dollar, Qatari riyal, and British pound have decreased.

Specifically, the buying rate for one US dollar is NPR 133.62 and the selling rate is NPR 134.22. For the Euro, the buying rate is NPR 144.99 and the selling rate is NPR 145.64.

The British pound is set at a buying rate of NPR 172.04 and a selling rate of NPR 172.81, while the Qatari riyal’s buying rate is NPR 36.64 and the selling rate is NPR 36.81.

(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.

Publish Date : 26 July 2024 08:25 AM

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