KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
On Sunday, the Nepal Stock Exchange (NEPSE) gained 21.27 points, closing at 2,140.97 points, despite a decrease in daily turnover to Rs 6.0 billion, reflecting cautious trading behavior among investors.
The market opened at 2,119.69 points, peaked at 2,146.82 points, and ended slightly lower by the day’s close. The sensitive index, measuring ‘A’ class firms, also rose by 3.52 points.
However, sectors like trading, finance, and banking saw losses, with trading notably declining by 69.42 points, while hotels, tourism, life insurance, and non-life insurance sectors posted significant gains.
Among individual stocks, 150 gained and 82 recorded losses. In other news, gold prices in Nepal reached a record high of Rs 145,400 per tola, surpassing previous peaks, though falling short of international records.
Meanwhile, the 220 kV Marsyangdi Corridor Transmission Line Project, aimed at integrating 1,600 MW of electricity into the national grid, is at 65% completion, facing delays attributed to COVID-19, local challenges, and geographical complexities, with a revised completion target set for July 2025.
NEPSE climbs 21.27 points; daily turnover dips to Rs 6.0 billion
While NEPSE showed positive index gains and strengths in certain sectors on Sunday, the decrease in turnover suggests cautious trading behavior among investors on that trading day.
NEPSE gained 21.27 points, closing at 2,140.97 points, while daily trading volume slightly decreased to Rs 6.0 billion. Nepal Stock Exchange (NEPSE) saw an increase of 21.27 points on Sunday, reaching a closing of 2,140.97 points.
The market opened at 2,119.69 points and fluctuated between 2,125 and 2,130 points for the first ninety minutes. Within the next hour, it peaked at 2,146.82 points, only to drop by approximately six points by the day’s end.
The sensitive index, which assesses the performance of ‘A’ class firms, also rose by 3.52 points. Daily turnover decreased from Rs 6.48 billion on Thursday to Rs 6.00 billion.
Three sectors—trading, finance, and banking—saw losses, with trading experiencing the steepest decline of 69.42 points.
Conversely, hotels and tourism, life insurance, and non-life insurance contributed significant gains of 160.77, 156.02, and 141.91 points, respectively. Among individual stocks, 150 gained while 82 recorded losses.
Gold hits record high at Rs 145,400 per tola
Gold achieved a historic milestone in Nepal, with prices soaring to an unprecedented Rs 145,400 per tola on Sunday, marking a Rs 1000 increase compared to previous records, reports the Federation of Nepal Gold and Silver Dealers’ Associations (FENEGOSIDA).
While this local peak surpasses the earlier high of Rs 145,000 per tola set on June 5, it falls short of the international record set on May 20, when gold reached $2426 per ounce. As of Sunday, international prices stand at $2391 per ounce.
220 kV Marsyangdi Corridor Transmission Line project lagging at 65% completion
The 220 kV Marsyangdi Corridor Transmission Line Project has reached approximately 65 percent completion, despite facing four deadline extensions since its commencement in 2018.
Originally scheduled for completion in 2021, the project has encountered delays. The latest deadline extension sets the completion target for July 2025, though uncertainties remain regarding meeting this timeline.
Project Chief Narayan Regmi attributed delays to challenges including the COVID-19 pandemic, local interventions, and geographical complexities. The corridor aims to integrate 1,600 MW of electricity from the Marsyangdi basin and its tributaries into the national transmission grid.
Govt accounts to freeze from today
All government accounts are set to halt operations for a week starting midnight Monday, following Rule 30 of the Financial Procedures and Financial Responsibility Regulations, 2077.
Accounts managed by the Comptroller General’s Office (Malenica), Provincial Accounts Comptroller’s Office (Pralenica), and all district Treasury and Accounts Controller’s Offices (Colenica) will be affected, announced Malenica spokesperson Om Prasad Rizal.
From Monday night, systems including the Local Fund Management System (SUTRA), Funding Single Account System (TSA), and Computerized Government Accounting System (CIGAS) will cease operations for seven days.
Officials emphasized the urgency to settle budgetary obligations for the current fiscal year 2080/81 by the impending deadline, given the temporary closure of all accounts involved in disbursing payments at union, state, and local levels.
Forex update: Pound up, dollar stable
The Nepal Rastra Bank has announced foreign currency exchange rates reflecting distinct trends across major currencies on Monday.
The British pound is on an upward trend, now trading at 170.73 NPR for buying and 171.50 NPR for selling, indicating increasing demand.
Conversely, the US dollar remains stable at 133.28 NPR for buying and 133.88 NPR for selling, showing steady valuation against the Nepali rupee.
The Euro has seen a rise in its exchange rates, standing at 144.45 NPR for buying and 145.10 NPR for selling, reflecting fluctuations in market demand.
Meanwhile, the Qatari riyal maintains stability with a buying rate of 36.55 NPR, while its selling rate has slightly decreased to 36.52 NPR, suggesting marginal adjustments in market dynamics.
These rates illustrate a dynamic foreign exchange market in Kathmandu, influenced by global economic trends and local 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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