Thursday, October 10th, 2024

Economic Digest: Nepal’s Business News in a Snap


30 August 2024  

Time taken to read : 5 Minute


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KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.

The NEPSE Index on Thursday fell by 1.32% to 2,749.57 points amid a volatile trading session marked by fluctuations between 2,727.57 and 2,800.28 points.

Despite this decline, market capitalization rose to Rs. 4.36 trillion, reflecting a strong trading volume of Rs. 12.24 billion.

Concurrently, gold prices in Nepal reached a record high of 153,200 rupees per tola, while silver prices dropped to 1,830 rupees per tola.

Bagmati Province faced a revenue shortfall in real estate and vehicle taxes, collecting Rs. 11.60 billion against a target of Rs. 13.50 billion.

Nepal Airlines experienced significant operational disruptions due to technical issues with three of its four aircraft, affecting international flights and leading to a loss of Rs. 10 million.

NEPSE index falls 1.32% amid volatile trading session; market capitalization rises to Rs. 4.36 trillion

The Nepal Stock Exchange (NEPSE) Index declined notably on Thursday, closing at 2,749.57 points, a decrease of 36.83 points or 1.32% from the previous close, following a previous session’s modest increase of 3.80 points to 2,786.40 points.

The index, which opened at 2,791.09 points, saw considerable volatility, reaching a high of 2,800.28 points and a low of 2,727.57 points during the session.

Trading activity was robust with 322 stocks traded through 146,204 transactions, involving 28,346,246 shares and a turnover of Rs. 12.24 billion.

Market capitalization increased to Rs. 4.36 trillion, while float market capitalization was Rs. 1.54 trillion, reflecting both the high trading volume and the fluctuating investor sentiment.

Gold hits record high in Nepal as silver prices decline

The price of gold in Nepal has surged to an unprecedented level, reaching 153,200 rupees per tola as of Thursday, according to the Federation of Nepal Gold and Silver Traders.

This represents a significant 800-rupee increase from Wednesday’s price of 153,100 rupees, extending a rising trend that began earlier in the week.

The current gold price not only exceeds Wednesday’s figure but also sets a new all-time high in the country.

In contrast, the silver market has experienced a decline, with the price of silver dropping by 25 rupees to 1,830 rupees per tola from 1,855 rupees the previous day.

This divergence in the price movements of gold and silver underscores a volatile and possibly speculative market environment, where gold’s persistent ascent contrasts sharply with silver’s recent downturn, indicating differing investor sentiments and market dynamics for these precious metals.

Bagmati Province Sees Revenue Drop in Real Estate and Vehicle Taxes

Revenue from real estate registration and vehicle taxes in Bagmati Province has diminished, reflecting a downturn in sector activity.

The fiscal year 2080/81 BS yielded Rs 11.60 billion in total revenue, indicating a shortfall in anticipated collections.

Specifically, revenue from real estate registration fell short, with Rs 5.48 billion collected against a target of Rs 6.75 billion, achieving only 81.32% of the goal.

This shortfall highlights the impact of reduced real estate transactions and vehicle sales on the province’s primary revenue streams, suggesting potential weaknesses in economic activity and financial planning.

Nepal Airlines Faces Disruptions as Three Aircraft Are Grounded, Affecting International Flights

International flights have been disrupted as three of Nepal Airlines Corporation’s (NAC) four aircraft are currently grounded due to technical issues.

On Tuesday, around 800 passengers faced cancellations and delays from Kathmandu, Hong Kong, Doha, and Dubai due to a hydraulic problem with NAC’s narrow-body aircraft.

The Civil Aviation Authority of Nepal has grounded the “Sagarmatha” aircraft, affecting operations.

Despite these issues, NAC has managed passenger accommodations in five-star hotels and arranged alternative flights with other airlines, incurring a loss of Rs 10 million.

The airline’s fleet includes two narrow-body and two wide-body aircraft, with one wide-body aircraft in Italy for maintenance and another recently sent for similar checks.

Additionally, NAC’s domestic operations are hampered by one inoperative ‘Twin Otter,’ highlighting the impact of its limited fleet on flight reliability and operations.

(Prepared by Srija Khanal)

Publish Date : 30 August 2024 08:15 AM

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