KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
On Monday, the NEPSE Index fell by 0.76% to 2,661.09 points amidst a significant turnover of Rs. 19.6 billion, reflecting high investor activity despite market volatility.
Gold prices rose with fine gold reaching Rs 146,100 per tola, influenced by market sentiment shifts.
Nepal achieved a milestone as a net electricity exporter, earning Rs 120 million in profit for the fiscal year 2023/24, with exports surpassing imports.
However, the planned tripartite electricity trade agreement involving Nepal, India, and Bangladesh was delayed due to protests in Bangladesh.
NEPSE index dips 0.76% amidst high turnover of Rs. 19.6 billion
The NEPSE Index closed at 2,661.09 points on Monday, marking a decrease of 20.46 points or 0.76% from the previous day, after a notable increase of 113.42 points in the preceding session.
The trading day began at 2,706.73 points and experienced significant volatility, with the index reaching a peak of 2,737.68 points before dropping to a low of 2,655.15 points.
This movement indicated ongoing market instability. During the day, 325 stocks were traded through 222,660 transactions, totaling 47,790,837 shares.
The turnover reached Rs. 19.6 billion, which was the fourth highest in NEPSE’s history, reflecting strong investor participation despite the decline in the index.
Gold prices surge, fine gold traded at Rs 146,100
The domestic market on Monday experienced a rise in gold prices, with an increase of Rs 400 per tola.
Fine gold was reported at Rs 146,100 per tola, while standard gold was priced at Rs 145,000 per tola, according to the Nepal Gold and Silver Dealers’ Association.
This marked a rise from the prices on Sunday, when fine gold was valued at Rs 145,700 per tola and standard gold at Rs 145,400 per tola.
The increase in gold prices suggested shifts in market sentiment, potentially driven by variations in supply and demand or fluctuations in global gold markets.
Additionally, silver prices were set at Rs 1,740 per tola. These movements in gold and silver prices were significant for investors and consumers, potentially affecting market strategies and purchasing power.
Nepal becomes net electricity exporter for the first time, reports Rs 120 million profit
For the first time, Nepal has emerged as a net exporter of electricity, with earnings surpassing expenses on imported power from India for the fiscal year 2023/24.
The Nepal Electricity Authority (NEA) reported exporting electricity worth Rs 16.93 billion while spending Rs 16.81 billion on imports, resulting in a net profit of over Rs 120 million.
This achievement follows the end of daily power cuts in 2018 and a significant increase in private sector contributions to electricity production.
Nepal exported 1.9426 billion units to India at an average rate of Rs 8.72 per unit, while importing 1.8335 billion units at Rs 9.17 per unit.
The NEA has also signed an agreement to sell 10,000 MW to India over the next decade, despite potential winter shortfalls.
Tripartite electricity trade agreement delayed due to Bangladesh protests
The tripartite agreement between Nepal, India, and Bangladesh for cross-border electricity trade, originally set to be signed on Sunday, was postponed.
Nabin Raj Singh, spokesperson for Nepal’s Ministry of Energy, Water Resources, and Irrigation, cited Bangladesh’s inability to attend due to ongoing student-led protests, which have resulted in 174 deaths.
Indian Union Power Minister Manohar Lal Khattar and Bangladeshi State Minister Nasrul Hamid were scheduled to visit Nepal for the signing.
A new date for the agreement will be arranged soon. Bangladesh had planned to import 40 MW of electricity daily from Nepal during the monsoon season.
Foreign currency exchange rates
The Nepal Rastra Bank (NRB) has set foreign currency exchange rates with slight variances between buying and selling rates for July 30.
For one US dollar, the buying rate is 133.67 rupees, and the selling rate is 134.27 rupees.
The Euro is priced at 144.75 rupees for buying and 145.40 rupees for selling. The British pound is valued at 171.65 rupees for buying and 172.42 rupees for selling, while the Qatari riyal has a buying rate of 36.66 rupees and a selling rate of 36.82 rupees.
These rates reflect the NRB’s current foreign exchange policies and market conditions.
(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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