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 declined by 0.53% to close at 2,677.62 points on Wednesday, following a previous increase, reflecting ongoing volatility in the market as it fluctuated between 2,693.81 and 2,705.24 points.
This decline occurred amid robust trading activity, with nearly 12.07 million shares traded across 305 stocks, and a turnover of Rs. 5.95 billion, highlighting the continued interest in the hotels and tourism sector, which emerged as the best performer.
In parallel, gold prices soared to a record Rs 170,700 per tola, driven by heightened demand amid economic uncertainty, particularly with the upcoming Tihar festival, prompting consumers to invest in this traditional safe-haven asset.
Financially, Nabil Bank and Soaltee Hotel Limited announced significant dividend proposals of 10% and 36.84%, respectively, indicating strong financial health and shareholder value.
Additionally, the construction of the Balambu Flyover aims to alleviate traffic congestion in Kathmandu, showcasing the government’s commitment to enhancing infrastructure, while Prime Minister KP Oli’s directive to Nepal Telecom underscores efforts to improve telecommunications services nationwide, further promoting economic growth and public service efficiency.
NEPSE Index declines by 0.53 percent to close at 2,677.62
The NEPSE index on Wednesday closed at 2,677.62 points, experiencing a decline of 14.43 points, or 0.53%, compared to the previous session.
This follows a notable increase of 46.69 points in the last trading day.
Starting at 2,693.81, the index fluctuated throughout the day, reaching a high of 2,705.24 before dropping to an intraday low of 2,671.30 points.
The trading involved 305 stocks and 59,698 transactions, with a total of 12,069,878 shares traded, resulting in a turnover of Rs. 5.95 billion.
The hotels and tourism sector performed the best among all sectors.
Gold prices soar to record Rs 170,700 per tola
The surge in gold prices to a record Rs 170,700 per tola on Wednesday reflects a growing trend of increasing demand amid economic uncertainty.
The jump of Rs 2,200 in just one day indicates a volatile market, often influenced by various factors such as inflation, currency fluctuations, and geopolitical tensions.
In Nepal, where gold holds cultural significance and is often purchased during festivals like Tihar, this price hike has spurred a notable uptick in consumer purchases.
Gold is traditionally viewed as a safe-haven asset, making it a preferred choice for those looking to safeguard their wealth against market fluctuations.
Additionally, the rise in silver prices, albeit more modest at Rs 2,120 per tola, suggests a broader trend in precious metals and highlights a growing consumer confidence in tangible assets.
Local traders report that the anticipation of increased buying during Tihar is prompting many to invest in larger quantities.
This behavior underscores a strategic shift among consumers who are seeking not only to celebrate the festival but also to secure financial stability through gold investments.
Nabil Bank proposes 10% cash dividend for FY 2024/25
Nabil Bank Limited (NABIL) has recommended a 10% cash dividend for the fiscal year 2024/25.
This decision was made during the 668th board meeting on October 29, focusing on a paid-up capital of Rs. 27.05 billion.
The proposed 10% cash dividend includes tax. The distribution of the dividend is contingent upon approval from the central bank and confirmation at the company’s upcoming AGM. Currently, NABIL’s last traded price (LTP) stands at Rs. 591.80.
Soaltee Hotel Limited proposes 36.84% dividend for FY 2024/25
Soaltee Hotel Limited (SHL) has announced a proposed dividend of 36.84% for the fiscal year 2024/25 and has scheduled its 50th Annual General Meeting (AGM) for December 19, 2024.
During the board meeting on October 29, the directors decided on a distribution plan that includes a 26.84% cash dividend and 10% bonus shares, based on the company’s paid-up capital of Rs. 92.89 crores.
This means the bonus shares are valued at Rs. 9,28,95,370, while the cash dividends amount to Rs. 24,93,50,730, with the cash dividend also covering the tax for the bonus shares.
Balambu Flyover: A solution for Valley traffic congestion
The construction of a flyover at Balambu in Kathmandu represents an infrastructural advancement aimed at easing the persistent traffic congestion caused by vehicles transitioning between the Kathmandu-Nagadhunga-Naubise Tunnel and Tribhuvan Rajpath.
With a length of 128 meters and a width of 7 meters, the flyover is designed to facilitate a smoother flow of traffic, thereby reducing delays and improving overall mobility in the region.
The completed 2,667-meter-long Balambu-Sisnekhola tunnel, which has been operational for a year, complements this project by enhancing access to the valley.
Collectively, these developments indicate a strategic effort to modernize the transport infrastructure, ultimately fostering economic growth and improving the quality of life for commuters by minimizing travel times and enhancing connectivity.
PM Oli directs Telecom to enhance service quality
Prime Minister KP Oli’s directive to Nepal Doorsanchar Company Limited (Nepal Telecom) to enhance service quality underscores the government’s commitment to improving telecommunications infrastructure in Nepal.
During a meeting, where the telecom team highlighted their contributions to the Prime Minister’s Disaster Relief Fund, Oli stressed the importance of providing reliable and efficient services to the public.
His assurance of government support for necessary equipment and technology indicates a proactive approach to addressing existing challenges within the telecom sector.
By urging Nepal Telecom to maintain its status as a national asset, Oli not only emphasizes the company’s vital role in national development but also sets the stage for accountability in service delivery, ultimately aiming to elevate the standard of telecommunications across the country.
(Prepared by Srija Khanal)
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