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

NEPSE experienced a significant decline, dropping 11.60 points to close at 2060 points, accompanied by reduced trading volume.

Market sentiment was negative across sectors like banking and insurance, with widespread losses indicating cautious investor confidence amidst economic uncertainty. Conversely, certain stocks like Nepal Finance showed gains, highlighting resilience amidst the downturn.

Meanwhile, the domestic gold market saw prices decrease, influenced by global trends and local economic conditions, impacting consumer behavior and investment strategies.

Nepal Rastra Bank announced plans to enhance market conduct oversight to protect consumers from financial risks, focusing on monitoring industry practices and ensuring compliance.

In Kanchanpur, a surge in driving licenses issuance contributed to increased revenue collection, reflecting growing vehicle numbers and effective regulatory measures.

NEPSE drops by 11.60 points on Wednesday

The Nepal Stock Exchange (NEPSE) experienced a notable decline, with the index dropping by 11.60 points to close at 2060 points on Wednesday. This decrease coincided with a slight reduction in trading volume from Rs 4.18 billion to Rs 4.05 billion.

Market sentiment was predominantly negative as reflected in the performance across various sectors. The majority of sectoral indices saw declines: banking, development banks, hotels and tourism, life insurance, manufacturing, microfinance, non-life insurance, and others all experienced varying degrees of losses.

This broad-based downturn underscores a cautious market environment marked by decreased investor confidence and economic uncertainty.

In contrast, certain stocks managed to buck the trend, with Nepal Finance leading the gainers with a notable increase of 9.5 percent.

Other gainers included Shivam Hydro, Ganapati Microfinance, Muktinath Agriculture Company, and Swabhiman Microfinance, reflecting pockets of resilience amidst the broader market downturn.

Conversely, stocks such as Sadhana Microfinance, Himalayan Energy Development, Mid-Solu Hydro, and Samling Power posted significant declines, highlighting the varied fortunes within the NEPSE amidst fluctuating investor sentiment.

Overall, while specific stocks showed strength, the general market trend on Wednesday was characterized by widespread losses and subdued trading activity.

Gold prices dip

The domestic gold market in Nepal saw a notable decrease in prices on Wednesday, according to the Federation of Nepal Gold and Silver Dealers’ Associations.

Fine gold, which was priced at Rs 142,300 per tola on Tuesday, declined by Rs 700 to Rs 141,600 per tola. Similarly, standard gold also experienced a reduction, now trading at Rs 140,900 per tola.

This decline reflects current market dynamics and investor sentiment, potentially influenced by global gold trends, currency fluctuations, and local economic conditions.

Concurrently, the price of silver also decreased from Rs 1,815 per tola to Rs 1,790 per tola, marking a Rs 25 per tola drop.

This downward trend in precious metals prices may impact consumer behavior and investment strategies in the region, warranting continued monitoring of market signals and economic indicators.

NRB to enhance market conduct oversight in next fiscal year

Nepal Rastra Bank (NRB) plans to introduce market conduct supervision from the upcoming fiscal year to safeguard consumers from risks associated with financial products and services.

NRB Governor Maha Prasad Adhikari emphasized the need for effective measures to protect consumers from irregularities in financial services. The new supervision framework will focus on monitoring industry developments, assessing business practices of financial institutions, and ensuring compliance with market conduct standards.

Adhikari also addressed concerns about the banking sector’s reluctance to issue loans despite ample funds available, stressing the importance of directed lending to support domestic production.

Looking ahead, he suggested a data-driven approach for the next fiscal year’s monetary policy, highlighting the central bank’s commitment to addressing challenges faced by the private sector and enhancing coordination with fiscal policies.

Kanchanpur sees surge in driving licenses and revenue collection

In the current fiscal year, the Transport Management Office in Kanchanpur has witnessed a rise in driving license issuance, with 4,400 licenses issued amidst an increasing vehicle population.

This issuance has contributed to a revenue collection of 7.4 million rupees from licenses issued for motorcycles, scooters, tractors, jeeps, cars, and other vehicles. Notably, motorcycle and scooter licenses accounted for the highest issuance. Comparatively, the office collected 8.759 million rupees in the previous fiscal year from license issuance.

(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.