KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The NEPSE Index on Thursday experienced a 1.30% decline, closing at 2,486.76 after fluctuating throughout the day, despite robust trading activity with 322 stocks exchanged, resulting in a turnover of Rs. 4.84 billion.
Concurrently, Nepal’s trade faced challenges in the first month of fiscal year 2024/25, with imports decreasing by 0.6% and exports by 9.6%.
However, remittances surged by 18%, contributing positively to the economy, alongside moderate inflation of 4.10% and a healthy balance of payments surplus of NPR 40.90 billion.
Gold prices reached an all-time high, climbing to 160,700 rupees per tola, reflecting a continued upward trend, while silver prices remained stable at 1,955 rupees per tola.
Additionally, the government shortlisted three candidates for the Chairperson position at the Securities Board of Nepal (SEBON), indicating a proactive approach in leadership appointments.
Overall, while the economy faces some challenges in trade, strong remittance inflows and rising gold prices suggest underlying resilience.
NEPSE index drops 1.30 percent
On Thursday, the NEPSE Index declined by 1.30%, dropping 32.81 points to close at 2,486.76 after a prior gain of 58.93 points.
The index exhibited volatility, starting at 2,519.04, dipping to a low of 2,479.65, and peaking at 2,541.69 before settling.
Trading activity was robust, with 322 stocks exchanged through 65,258 transactions, amounting to a total volume of over 13.69 million shares and a turnover of Rs. 4.84 billion.
The market capitalization reached Rs. 3.95 trillion, while the float market capitalization was reported at Rs. 1.39 trillion, indicating a significant level of market engagement despite the day’s losses.
Nepal’s trade declines, remittances surge
In the first month of the fiscal year 2024/25, Nepal experienced declines in both imports and exports, with imports down 0.6% and exports falling 9.6%, as reported by the Nepal Rastra Bank.
However, remittance inflows showed a robust increase of 18% in Nepali Rupees, bolstering the economy amid declining trade figures.
Inflation was moderate at 4.10% year-on-year, and the balance of payments remained positive, recording a surplus of NPR 40.90 billion.
The total foreign exchange reserves stood at NPR 2,092.22 billion, indicating a stable financial position. Government expenditure was NPR 40.21 billion against revenue collection of NPR 94.74 billion, suggesting a healthy fiscal balance at this early stage of the year.
Overall, while trade showed weakness, strong remittances and controlled inflation provided some economic resilience.
Gold prices hit all-time high
The price of gold, which has been steadily rising for five consecutive days, once again set a record on Thursday, reaching its highest level ever.
The price of gold rose by 300 rupees, reaching 160,700 rupees per tola, according to the Nepal Gold and Silver Traders Federation.
This marked the highest price for gold recorded to date, up from yesterday’s price of 160,400 rupees.
In contrast, the price of silver remained stable. Silver was traded at 1,955 rupees per tola.
Nepal’s BOP surplus nears Rs 41 billion
The balance of payments (BOP) in the country remained at a surplus of Rs 40.90 billion in the first month of the current fiscal year 2081/082 BS, according to the Nepal Rastra Bank (NRB).
The BOP surplus was Rs 36.43 billion in the same period of the previous year. In the US Dollar terms, the BOP remained at a surplus of 305.1 million in the review period compared to a surplus of 276.3 million in the same period of the previous year, the NRB stated in the Current Macroeconomic and Financial Situation report.
Govt shortlists three candidates for SEBON Chairperson
The government has sholisted three candidates for the Chairperson at Securities Board of Nepal (SEBON).
The Ministry of Finance has stated that following a meeting of the chairperson recommendation committee on Wednesday, Krishna Bahadur Karki, Chiranjibi Chapagai, and Dr. Navaraj Adhikari have been shortlisted for interviews.
(Prepared by Srija Khanal)
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