KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The NEPSE Index on Wednesday, saw a modest increase of 0.13%, closing at 2,786.40 points after experiencing significant volatility during the session.
Meanwhile, gold prices hit a record high of NPR 153,100 per tola, reflecting heightened market activity and possible shifts in investor sentiment, while silver prices remained stable.
Nepal also reported exporting electricity worth Rs 4.19 billion to India in the past month, showcasing its growing capacity as a net exporter.
In leadership changes, ICC Nepal elected new officials with Rajesh Kaji Shrestha as Chairman.
Additionally, E-Cab Nepal expanded its services to Lumbini Province, offering zero commission fees to new drivers and launching programs to support local income generation.
NEPSE Index edges up 0.13% as investment sector shines
The Nepal Stock Exchange (NEPSE) Index on Wednesday experienced a modest gain today, closing at 2,786.40 points, which represents an increase of 3.80 points or 0.13% compared to the previous session.
This follows a sharp drop of 111.96 points in the prior session, where the index ended at 2,782.60 points. Wednesday’s trading began with the index at 2,791.09 points and saw considerable volatility, peaking at 2,860.89 points and dipping to 2,761.02 points before closing at the final figure.
The trading session was marked by robust activity, with 326 stocks traded through 168,175 transactions, involving 35,007,039 shares and generating a turnover of Rs. 13.72 billion.
Gold prices hit record high amidst stable silver market
Gold prices surged to a record high on Wednesday, reaching NPR 153,100 per tola, according to the Federation of Nepal Gold and Silver Traders.
This peak reflected a notable increase from the recent low of NPR 153,000 observed on August 21 and a substantial rise of NPR 800 from the previous day’s valuation of NPR 152,300 per tola.
The upward trend in gold prices indicated heightened market volatility or possibly increased demand, suggesting a potential shift in investor behavior or macroeconomic factors influencing the precious metals market.
In contrast, silver prices remained relatively stable, holding at NPR 1,855 per tola, up slightly from NPR 1,850 the day before.
This stability in silver prices amidst the gold price surge implied diverging market dynamics or varying investor sentiment between the two metals.
Nepal exports electricity worth Rs 4.19 billion to India
Between mid-July and mid-August, Nepal exported electricity valued at Rs 4.19 billion (INR 2.62 billion) to India, averaging Rs 131.1 million per day at a rate of Rs 8.51 per unit, according to the Nepal Electricity Authority (NEA).
NEA Managing Director Kulman Ghising stated that Nepal can sell over 700 MW daily, utilizing surplus electricity after domestic needs.
For the fiscal year 2023/24, Nepal emerged as a net electricity exporter, earning Rs 120 million from transactions with India. Nepal’s electricity production capacity has risen to 3,157 MW, tripling in eight years, while peak demand is 2,650 MW.
The country aims to export excess power to India and Bangladesh, having signed a deal to sell 10,000 MW to India over ten years.
Since October 2021, India’s power imports from Nepal have expanded significantly, and additional agreements have increased Nepal’s export capacity to 941 MW from 28 hydropower projects.
New leadership picked at ICC Nepal
Rajesh Kaji Shrestha was elected unopposed as Chairman of ICC Nepal during the recent annual general meeting. Lokmanya Golchha, Dinesh Shrestha, Ganesh Karki, Sunil KC, Chunky Chhetri, and Rajendra Aryal were also elected unopposed to various Vice Chairman roles.
Rajendra Malla was appointed ex-officio Vice Chairman, Lhakpa Sonam Sherpa as Honorary Vice Chairman, Naresh Prasad Shrestha as General Secretary, Kush Prasad Malli as Treasurer, and Ramsharan Bhandari and Rekha Ghimire as Secretaries.
The new board members include Gyanendra Dhungana, Ashok Sherchan, and others.
Outgoing President Surendra Bir Malakar noted that ICC Nepal aims to enhance business conditions in Nepal by collaborating with government and industry leaders to boost investment, exports, and tourism while resolving business disputes.
E-Cab Nepal expands to Lumbini Province
E-Cab Nepal, a digital taxi booking platform, has extended its services to Lumbini Province, covering Butwal, Bhairahawa, and Palpa.
From launch on Sunday, drivers in these cities will enjoy zero commission fees. The company has also launched the ‘Bike Ours, Income Yours’ program, providing bikes to students for earning income through the platform.
E-Cab Nepal offers pre-booked airport taxi pickups for international arrivals and parcel delivery within Kathmandu Valley via Madads Agency. The platform currently affiliates over 10,000 taxis.
Cement worth Rs 320 million exported from Kakarvitta
Cement worth Rs 320 million has been exported to India from the eastern border of Kakarvitta during the last fiscal year.
Ganapati Kandel, Information Officer at the Mechi Customs Office, stated that 49,959 metric tons of cement was exported from this port. Although cement and clinker have been exported from various ports across the country for the past three years, this marks the first time such exports have occurred from Kakarvitta.
(Prepared by Srija Khanal)
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