KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
On the final trading day of the week, the Nepal Stock Exchange (NEPSE) saw a decline of 8.24 points, leading many investors to redirect their investments towards debentures.
Meanwhile, concerns arose when the federal government’s budget allocation for the Khalanga-Tinkar road in Darchula fell short, prompting a plea from the local Beas rural municipality for additional financial support.
NEPSE falls by 8.24 points; daily turnover dips to Rs 3.71 billion
The Nepal Stock Exchange (NEPSE) experienced a decline of 8.24 points on Thursday, closing at 2,051.92 points. Starting the day at 2,060.16 points, the market reached a low of 2,047.34 points within the first one and a half hours of trading.
Despite remaining relatively stable for the rest of the trading session, the index saw a last-minute increase of approximately four points just before the market closed.
The sensitive index, which tracks the performance of ‘A’ class companies, also decreased by 1.56 points. Meanwhile, the daily turnover in the market decreased from Rs 4.05 billion on Wednesday to Rs 3.71 billion on Thursday.
Among the market’s 13 groups, indices for ‘others,’ banking, and mutual funds saw marginal increases, while life insurance recorded the largest decline of 99.01 points among the 10 groups that experienced losses.
In terms of individual companies, 47 registered gains while 188 recorded losses. Nepal Finance Ltd led in terms of turnover with shares worth Rs 227.64 million, although it also topped the list of losers. Conversely, Trishuli Jal Vidhyut Company Limited saw the highest gain of 7.09 percent in its market value.
Gold price down by Rs 800 per tola
The price of gold in the Nepali market experienced a decrease of Rs 800 per tola on Thursday, according to the Nepal Gold and Silver Dealers’ Association. Fine gold was valued at Rs 140,800 per tola, while standard gold was priced at Rs 140,100 per tola.
This marks a notable drop from the price of Rs 141,600 per tola observed on the previous Wednesday. The daily fluctuations in gold prices are closely monitored and adjusted by the Federation based on international market rates, reflecting global trends in the precious metals market.
One tola equals approximately 11.66 grams, providing a standardized unit of measurement that facilitates transactions and price comparisons in the Nepali market.
This pricing mechanism helps stakeholders in the gold and silver industries to stay informed about current market conditions, enabling informed decision-making in trading and investment activities.
Pathlaiya-Hetauda Road to complete two-kilometer section in a week
The Pathalaiya-Hetauda road project is nearing completion, with a critical two-kilometer stretch in the half-load area set to finish within the week.
According to Ramesh Pandey, information officer at the Road Division Office in Hetauda, the upgraded section aims to resolve issues caused by heavy goods vehicles passing through Birgunj customs office.
Initial preparations have already paved 1,200 meters of the two-lane road, with the remaining 800 meters scheduled for final blacklisting (DBM) and subsequent asphalt paving within days.
Muglin-Pokhara road extends with 53 km blacktop
In other infrastructure developments, a significant 53 km section of the Muglin-Pokhara road has been freshly blacktopped.
Progress stands at 62 percent in the eastern section and 28 percent in the western section, with ongoing construction of drainage systems and other structures to manage monsoon challenges.
Key bridges near Dumre Bazar, Ambukhaireni, and Damauli are nearing completion, while an ‘Arch Design’ bridge over the Madi River in Tanahun is 30 percent finished.
Appropriation Bill, 2081 presented in National Assembly
Finance Minister Barsha Man Pun introduced the ‘Appropriation Bill, 2081’ under Rule 133 (A) (2) of the National Assembly Regulations, 2075 at Thursday’s National Assembly meeting.
The bill’s purpose is to authorize the expenditure from the Federal Reserve Fund for the upcoming fiscal year 2024/25. Minister Pun emphasized the necessity of this bill for allocating funds for various governmental services and projects in the next fiscal year.
NRB sets foreign currency exchange rates
The Nepal Rastra Bank (NRB) has set exchange rates for various foreign currencies as of June 28. The exchange rate for the US dollar stands at 133 rupees 24 paisa for buying and 133 rupees 84 paisa for selling.
Similarly, the Euro is priced at 142 rupees 57 paisa for buying and 143 rupees 22 paisa for selling, while the British pound has rates of 168 rupees 54 paisa for buying and 169 rupees 29 paisa for selling. Additionally, the Qatari riyal has a buying rate of 36 rupees 55 paisa and a selling rate of 36 rupees 71 paisa according to NRB.
These exchange rates indicate the cost to purchase or sell each currency in Nepalese rupees. They are crucial for businesses and individuals involved in international trade, tourism, and investment, as they determine the value of foreign currencies relative to the Nepalese rupee.
The slight differences between buying and selling rates reflect transaction costs and potential profit margins for currency dealers.
(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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