KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
This week, the Nepal Stock Exchange (NEPSE) saw a modest rebound, with the NEPSE Index rising by 1.31%, closing at 2,630.71 after experiencing significant volatility.
Despite the market operating for just four days due to a public holiday, trading activity was robust, with a total turnover of Rs 19.47 billion.
On the commodities front, gold and silver prices saw an uptick, with gold rising by Rs 400 per tola, signaling increased demand.
Meanwhile, the insurance sector witnessed heightened competition as life insurance companies, including Nepal Life Insurance, reported significant premium collections, while companies like Reliable Nepal Life struggled despite having a larger number of active policies.
Additionally, Asha Laghubitta listed its 914,302.80 bonus shares on NEPSE, highlighting continued activity in the stock market.
Overall, while the market showed some positive movement, sector-specific developments like insurance premium collections and gold price fluctuations point to evolving economic dynamics.
NEPSE ends the week with a 1.31% gain
The Nepal Stock Exchange (NEPSE) operated for four days this week, as Wednesday was a public holiday.
The NEPSE Index finished at 2,630.71, marking an increase of 33.89 points, or 1.31%. In comparison, last week the index closed at 2,596.82, reflecting a 3.19% decline from the previous week.
Throughout the week, the index reached a high of 2,645.20 and a low of 2,569, experiencing a volatility of 76.2 points. The previous week had seen a larger volatility of 91.14 points.
The highest single-day gain occurred on Monday, with the index rising by 28.91 points and a turnover of Rs 4.43 billion. Overall, the total turnover for the week amounted to Rs 19.47 billion.
Gold price up by Rs 400 per tola on Friday
The price of gold saw an increase in the domestic market on Friday.
According to the Federation of Nepal Gold and Silver Dealers Association, gold was traded at Rs 150,700 per tola, marking an increase of Rs 400 from Thursday’s price of Rs 150,300 per tola.
In addition to gold, the price of silver also increased.
Silver was traded at Rs 1,815 per tola, an increase of Rs 15 per tola compared to its previous price.
Life insurance companies compete to boost premium collections
Insurance companies are vying to boost their premium collections. By the end of Mangsir in the fiscal year 2081/82, life insurance companies had gathered a total premium of Rs 65.74 billion from 13,342,246 active insurance policies.
According to a report from the Nepal Insurance Authority, Nepal Life Insurance Company Limited alone collected Rs 18.76 billion, with 1,723,339 active policies by Mangsir 2081.
On the other hand, a notable finding is that Reliable Nepal Life Insurance Co Ltd, despite having the highest number of active policies—2,439,890—managed to collect only Rs 1.92 billion in premiums during the same period.
Asha Laghubitta’s 914,302.80 bonus shares listed on NEPSE
A total of 914,302.80 bonus shares of Asha Laghubitta Bittiya Sanstha Ltd (ALBSL) have been officially listed on the Nepal Stock Exchange (NEPSE).
The company held its 8th Annual General Meeting (AGM) on 7th Mangsir, 2081, where a 15% dividend for the fiscal year 2079/80 was approved for shareholders.
During the 157th meeting of the Board of Directors on Ashwin 6, it was decided to distribute 14.25% in bonus shares, amounting to Rs. 9.14 crore, along with a 0.75% cash dividend (including tax), totaling Rs. 42,12,120. These bonus shares have now been listed on NEPSE.
Nepal Rastra Bank revokes licenses of three remittance companies
Nepal Rastra Bank (NRB) has revoked the licenses of three remittance companies. The Rastra Bank has stated that the licenses of Bhatbhateni Money Transfer, Modern Remittance and Namaste Remit International have been revoked.
The NRB has stated that the licenses were revoked due to non-renewal of the transaction license.
The Rastra Bank has also asked the companies to provide written information within 35 days if they are allowed to receive remittance amounts from the revoked institutions.
(Prepared by Srija Khanal)
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