KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The developments reflect a mixed but cautiously stabilizing economic picture, marked by moderate optimism in capital markets alongside ongoing liquidity management and structural shifts. NEPSE’s marginal weekly gain, despite volatile daily movements and declining turnover, suggests investor caution rather than strong bullish sentiment, reinforced by uneven sectoral performance and heavy IPO oversubscription that highlights limited alternative investment avenues.
The central bank’s issuance of Rs 10 billion in debt instruments underscores persistent excess liquidity, even as a commercial bank’s decision to forgo dividends points to stress in parts of the financial sector. At the same time, falling gold and silver prices indicate softer demand for safe-haven assets, while strong growth in electricity exports signals improving external earnings and regional energy integration.
Beyond financial markets, rising incomes from coffee farming illustrate grassroots economic diversification, contrasting with the substantial fiscal burden posed by protest-related reconstruction, which could weigh on public finances in the near term.
NEPSE closes the week higher at 2,640.54, gains 4.59 points
The Nepal Stock Exchange (NEPSE) ended the final trading session of the week in positive territory, advancing by 4.59 points. Over the five trading days, the benchmark index recorded gains on three days and losses on two. The market slipped on Sunday and Wednesday, but rebounded on Monday, Tuesday, and Thursday. Compared to Wednesday’s close, the index rose by 0.17 percent to settle at 2,640.54 points. The Sensitive Index also edged up, adding 0.92 points, or 0.20 percent, to close at 455.93. Trading activity on Thursday involved 328 companies, with 69,261 transactions and 14.30 million shares exchanged, generating a total turnover of Rs 4.91 billion. Earlier in the week, NEPSE had dropped 10.29 points on Sunday, surged by 28.73 points on Monday and 9.93 points on Tuesday, before declining by 13.35 points on Wednesday. Despite Thursday’s marginal gain, overall turnover was lower than the previous trading day. Among the 13 sector indices, seven posted gains while six declined. Commercial banks rose by 0.30 percent and development banks by 0.18 percent, whereas the finance sector slipped by 0.44 percent.
Gold and silver prices decline in domestic market
Gold prices fell in the Nepali market on Thursday, dropping by Rs 2,000 per tola to Rs 265,700, according to the Federation of Nepal Gold and Silver Dealers. On Wednesday, gold was traded at Rs 267,500 per tola. Silver prices also declined, falling from Rs 4,935 per tola to Rs 4,835.
NRB issues Rs 10 billion in debt instruments to absorb excess liquidity
Nepal Rastra Bank has issued debt instruments worth Rs 10 billion on Poush 24 to manage surplus liquidity in the banking system. The one-year instruments, titled “Nepal Rastra Bank Debt Instrument 2083 (Cha),” were issued through a competitive bidding process. The interest rate will be determined based on bids submitted by eligible institutions. The minimum bid amount has been set at Rs 50 million, with bids accepted in multiples of the same amount up to the total issue size. The principal will mature on Poush 24, 2083, while interest will be paid semi-annually. Commercial banks, development banks, and finance companies are eligible to participate in the bidding.
Corporate Development Bank to forgo dividend distribution
Corporate Development Bank Limited has decided not to distribute dividends to its shareholders. The decision was taken during a board meeting held on January 7 after reviewing the audited financial statements for fiscal year 2081/82. The bank stated that the financial statements will be submitted to Nepal Rastra Bank for regulatory approval. Following approval, the statements will be presented for endorsement at the bank’s upcoming annual general meeting.
NEA earns Rs 18.26 billion from electricity exports in five months
The Nepal Electricity Authority earned Rs 18.26 billion from electricity exports to India and Bangladesh during the first five months of fiscal year 2082/83. According to NEA data up to the end of Mangsir, Nepal exported a total of 2,714 gigawatt-hours of electricity during the period. Power exports to Bangladesh included 40 megawatts supplied from Ashar to Kartik, generating USD 94.36 million in revenue. NEA spokesperson Rajan Dhakal said the reported revenue reflects combined exports to both neighboring countries. Nepal exported around 1,200 megawatts of electricity to India during the review period. In the same period last fiscal year, electricity export earnings stood at Rs 13.23 billion.
Salapa Development Bank IPO allotment scheduled for January 9
The allotment of Salapa Development Bank’s IPO is scheduled for Friday, January 9. The bank had issued 1,439,179 ordinary shares to the general public. According to CDS and Clearing Limited, applications were received from 2,383,407 investors seeking more than 27.88 million shares, making the issue oversubscribed by 19.37 times. Under existing allotment guidelines, shares will be distributed at a minimum of 10 units per applicant. As a result, only 143,917 applicants will receive shares, while over 2.23 million applicants will be left without allotment. Muktinath Capital is managing the issue.
Bharat Kumar Malla elected president of SEMAN
Bharat Kumar Malla has been elected president of the Solar Electric Manufacturers Association Nepal (SEMAN). A 16-member executive committee was formed during the association’s 25th annual general meeting held in Kathmandu on Wednesday. Deepak Gautam was elected senior vice president, Rameshwor Wagle first vice president, Sudarshan Baniya second vice president, Netra Bahadur Khatri general secretary, Keshav Raj Sharma secretary, and Ram Prasad Koirala treasurer. Nine other members were also elected to the committee. Newly elected second vice president Baniya said SEMAN has been actively contributing to electrification efforts in health, education, irrigation, communication, and drinking water sectors through solar energy.
Coffee farming raises incomes in Mahabharat Rural Municipality
Coffee cultivation has emerged as a reliable source of income for farmers in Mahabharat Rural Municipality. Sikan Shankhalal Thokar of Koltar Lamadanda–4 began coffee farming after returning from foreign employment and has since inspired others in the village to follow suit. With the harvest season underway, hillsides are filled with coffee plants bearing ripe cherries. Thokar estimates his earnings this year will reach around Rs 2.5 million, citing better prices than last year. The income, he said, has helped cover household expenses and his children’s education. Another farmer, Gyan Bahadur Bomjan, who has been growing coffee commercially for six years, said coffee farming yields higher returns with significantly less labor compared to traditional crops like maize and millet.
Damage from September protests estimated at Rs 36.3 billion for reconstruction
The cost of rebuilding and repairing physical infrastructure damaged during the September 23–24 protests has been estimated at Rs 36.3 billion. A committee formed under the National Planning Commission assessed total losses at Rs 84.46 billion, equivalent to 1.38 percent of Nepal’s GDP and 4.3 percent of the current fiscal budget. Public and government property accounted for 53 percent of losses, private assets 40 percent, and community assets 7 percent. Bagmati Province suffered the most damage, representing 66.5 percent of the total. The protests damaged 2,671 buildings, mostly public structures, disrupted employment for nearly 3,000 people, and resulted in 77 deaths. The report outlines plans for reconstruction, repair, and compensation.
Hotel Forest Inn to open IPO from January 18
Hotel Forest Inn Limited is set to launch its initial public offering (IPO) starting January 18. In the first phase, shares will be issued exclusively to Nepali citizens working abroad. The company received approval from the Securities Board of Nepal on Poush 20 to issue 4 million ordinary shares at a face value of Rs 100 each, totaling Rs 400 million. Of this, 10 percent, or 400,000 shares, have been reserved for migrant workers. Applicants can apply for a minimum of 10 shares and a maximum of 200,000 shares. The issue will close on January 22 if fully subscribed, or by February 1 at the latest. Applications can be submitted through ASBA-approved banks and financial institutions, their designated branches, and the Mero Share system. NIC Asia Capital has been appointed as the issue and sales manager. Shares for the general public will be issued in the second phase.
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