KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The Nepal Stock Exchange (NEPSE) saw a notable decline on Tuesday, dropping by 33.08 points (1.26%) to close at 2,576.50, following a previous decrease of 21.12 points.
The market showed volatility throughout the day, with a turnover of Rs. 5.67 billion and over 13 million shares traded.
This dip in the stock market coincided with a drop in gold prices, which fell by Rs. 600 per tola, reflecting broader shifts in investor sentiment.
While the financial markets faced downward pressure, the Nepal Electricity Authority (NEA) made proactive efforts to ensure uninterrupted power supply for the Kathmandu-Tarai Fast Track project, demonstrating the government’s commitment to supporting vital infrastructure.
Additionally, NLG Insurance Company closed its rights share offering, and Bandipur launched its “Visit Bandipur Year 2025” campaign to boost tourism.
These developments reflect a dynamic landscape where economic, infrastructure, and tourism sectors are simultaneously responding to challenges and opportunities.
NEPSE ends with a notable drop of 33.08 points
The Nepal Stock Exchange (NEPSE) experienced a significant drop on Tuesday, falling by 33.08 points (1.26%) to close at 2,576.50. This follows a previous decline of 21.12 points in the last trading session.
The market opened at 2,613.7 and showed considerable volatility throughout the day, reaching a high of 2,613.95 and a low of 2,545.34.
The total turnover for the day was Rs. 5.67 billion, with 69,923 transactions involving 13,174,379 shares from 308 listed companies.
NOC hikes petrol and diesel prices
The price hike by the Nepal Oil Corporation (NOC) reflects the ongoing challenges faced by the country in managing fuel prices amidst fluctuating global oil rates.
The increase of one rupee for diesel and two rupees for petrol may be seen as a necessary adjustment by the NOC to keep pace with international market trends and maintain its financial stability.
However, these price hikes are likely to have ripple effects on the cost of living, potentially raising transportation costs and affecting the prices of goods and services.
As Nepal remains reliant on imported oil, such price adjustments could also spark concerns about inflation and the economic burden on households, especially in regions with already high living expenses.
Gold price drops by Rs. 600 per tola
The Nepali gold market saw a significant decline, with the price of fine gold falling by Rs. 600 per tola on Tuesday.
Fine gold was priced at Rs. 1,49,600 per tola, down from Rs. 150,200 per tola. Similarly, the price of Tejabi gold decreased by Rs. 600, standing at Rs. 1,48,900 per tola, from the previous rate of Rs. 149,500 per tola.
This drop follows the record high of Rs. 171,000 per tola reached on October 31, 2024.
Meanwhile, silver also experienced a slight decline, with a decrease of Rs. 25 per tola. It was traded at Rs. 1,765 per tola, down from Rs. 1,790 the day before.
NEA ensures steady power supply for Kathmandu-Tarai Fast Track construction
The Nepal Electricity Authority (NEA) is taking proactive measures to ensure a steady supply of electricity for the construction of the Kathmandu-Tarai Fast Track, a critical infrastructure project.
Recognizing the need for approximately 12 megawatts of electricity for essential construction activities, including bridges, tunnels, and gallery tunnels in Makawanpur, the NEA is implementing strategic solutions to mitigate potential power shortages.
By repurposing the existing 66 kV transmission line from Kulekhani and installing a new transformer at the Dhorsing Substation, the NEA aims to meet the immediate power demands of the project.
NEA Managing Director Kulman Ghising emphasized the national importance of the Fast Track, asserting that power disruptions should not hinder its timely progress.
Govt to introduce new tourism policy with focus on public private partnership
The government is preparing to implement a new tourism policy aimed at the holistic development of Nepal’s tourism sector, announced Minister for Culture, Tourism and Civil Aviation Badri Pandey.
Minister Pandey revealed that the new policy will provide a framework to guide the tourism industry and foster sustainable growth.
Minister Pandey emphasized the importance of operating the Nepal Tourism Board under a Public Private Partnership (PPP) model to effectively harness resources and expertise from both sectors.
Nepal sees 1.14 million tourist arrivals in 2024
Nepal welcomed more than 1.14 million tourists in 2024, marking a significant recovery in the tourism sector.
According to the Nepal Tourism Board, as of Tuesday morning, the country saw a total of 1.147 million visitors.
Board Director Marinraj Lamichhane shared that, on average, 3,000 tourists arrived daily, reflecting a 14 percent increase from 2023. The 2024 figures surpass those of 2019, when 1.197 million foreign tourists visited Nepal.
NLG Insurance Company Limited closes issuance of right shares
NLG Insurance Company Limited (NLG) closed the issuance of right shares in a 10:6.256 ratio to its shareholders at a par value of Rs. 100 on Tuesday.
The rights offering, which was initially scheduled to close on 1st Poush, was extended as per the company’s announcement and concluded yesterday.
Through this offering, the company will issue 62.56% right shares valued at Rs. 96.31 crore, amounting to 9,631,220.22 units (in a 1:0.6256 ratio) to its existing shareholders.
Bandipur launches ‘Visit Bandipur Year’ campaign
Bandipur, a historic town in Nepal, is launching the “Visit Bandipur Year 2025” campaign to promote tourism today. Located between Kathmandu and Pokhara, Bandipur’s history dates back to the 19th century when Newars from Bhaktapur settled there.
The town became a key trade route between India and Tibet after the conquest of the Kathmandu Valley by Prithvi Narayan Shah.
Known for its Newar-style architecture, including pagoda roofs and ornate doorways, Bandipur is now one of Nepal’s top tourist destinations.
(Prepared by Srija Khanal)
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