KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
This summary provides an overview of developments in Nepal’s economic and market landscape.
The Nepal Stock Exchange (NEPSE) on Wednesday showed a positive trend, rising by 38.81 points, marking its third consecutive day of gains, which reflects investor optimism.
Additionally, the MCA-Nepal has relaunched the bidding process for a significant power transmission project under the Millennium Challenge Corporation, aimed at strengthening Nepal’s infrastructure.
Meanwhile, tourism continues to thrive in the Shey-Phoksundo area, with a substantial revenue increase, highlighting the ongoing appeal of eco-tourism in Nepal.
On the commodities front, gold prices saw a rise, signaling changes in the global market affecting local prices.
This also touches upon key corporate moves, including NRN Infrastructure’s proposal for bonus shares and cash dividends, SEBON’s recent leadership change, and Ambe Steels’ IPO plans.
Furthermore, the Nepal Electricity Authority has decided not to cut power to industries, offering relief to the industrial sector.
Together, these stories suggest a period of growth and strategic development for Nepal’s economy, with positive market movements, infrastructure investments, and rising tourism revenue.
NEPSE rises 38.81 points, total turnover reaches Rs. 9.31 billion
The Nepal Stock Exchange (NEPSE) rose by 38.81 points (1.42%) on Wednesday, ending the day at 2,755.47, with a total turnover of Rs. 9.31 billion.
This marks the third consecutive day of gains, with the index rising by a total of 88.05 points over the past three trading sessions. In the previous session, NEPSE had gained 33.41 points.
The market opened at 2,721.52 and experienced fluctuations throughout the day, dipping to an intraday low of 2,721.35 and peaking at 2,755.98.
MCA-Nepal relaunches bid for 297 km power transmission line
MCA-Nepal reopened the bidding process for the construction of a 297 km power transmission line.
This project, part of the Millennium Challenge Corporation (MCC) Nepal Compact, aims to enhance the country’s power transmission infrastructure.
Bids must be submitted by January 30, 2025. The construction will be carried out in three sections: Lapsiphedi-Ratmate-New Hetauda, Ratmate-New Damauli, and New Damauli-New Butwal.
NEA moves to freeze shares of 34 industries over unpaid electricity dues
Nepal Electricity Authority (NEA) has initiated action to freeze shares and bank accounts of 34 industries that have failed to clear their outstanding electricity bills despite repeated notices.
Following the government’s directive and the expiration of the final deadline, NEA has written to the concerned companies to deduct the unpaid dues from payments owed under power purchase agreements for energy projects in which these industries have investments.
Shey-Phoksundo generates revenue of Rs 1.053 in five months
Shey-Phoksundo, Nepal’s deepest lake, continues to draw tourists despite cooling temperatures.
Between mid-July and mid-October, 1,632 tourists visited the area, with domestic visitors outnumbering foreign ones. In the last five months, 326 foreign tourists from SAARC countries and beyond generated Rs 1.053 million in revenue.
Overall, the park has collected Rs 6.57 million in the current fiscal year through forest produce sales, eco-tourism, and related charges.
Gold price up by Rs 900 per tola today
The prices of gold and silver experienced an increase in the Nepali market on Wednesday.
The price of gold rose by Rs 900 per tola, bringing the trading price to Rs 149,600, up from Rs 148,700 on Tuesday. This marks a significant shift in the market for gold.
Similarly, silver also saw a price hike, with its value increasing by Rs 10 per tola. The new price for silver was Rs 1,830, up from Rs 1,820 the previous day.
These price changes reflect a broader trend of rising precious metal values, which could be influenced by global market fluctuations, domestic demand, or other economic factors impacting Nepal’s bullion market.
SEBON Chairman Shrestha assumes office
Santosh Narayan Shrestha took office as the new Chairman of the Securities Board of Nepal (SEBON) on Wednesday.
The day before, on Tuesday, he swore an oath of office and secrecy, administered by Finance Minister Bishnu Poudel, marking the start of his tenure as Chairman.
Following the assumption of office, Chairman Shrestha expressed his commitment to constructing a dedicated office building for SEBON during his tenure, as the organization has so far operated from a rented space.
NRN Infrastructure proposes 5% bonus shares
The NRN Infrastructure and Development Limited announced the date for its 12th Annual General Meeting (AGM), scheduled for December 27 in Kathmandu.
Meanwhile, the company proposed a 5% bonus share distribution, amounting to Rs. 6.11 crores, and a 0.2632% cash dividend (for tax purposes), totaling Rs. 32.18 lakhs, for the fiscal year 2080/81.
The company’s current paid-up capital stands at Rs. 1.22 Arba. Additionally, the proposal includes issuing rights shares at a 1:1 ratio following the bonus share distribution.
SEBON includes Ambe Steels Limited’s IPO proposal
Ambe Steels Limited has submitted an application to the capital market regulator on Kartik 07, 2081, requesting approval to offer 11,192,727 shares at a premium price of Rs. 303 per share.
The goal of the offering is to raise Rs. 3.39 billion from local and general investors. Nabil Investment Banking Limited has been selected as the issue manager for this public offering.
NEA Board of Directors decides not to cut power to industries
The Board of Directors of the Nepal Electricity Authority (NEA) has decided not to cut electricity supply to industries, following a meeting.
Board member Kapil Acharya stated that, as per a letter from the Electricity Regulatory Commission, the decision has been made to refrain from cutting power to industries for the time being. Acharya expressed concerns that such decisions from the Commission, issued periodically, could create difficulties and lead to potential revenue loss.
(Prepared by Srija Khanal)
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