KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The recent trading activity on the Nepal Stock Exchange (NEPSE) reflects a notable fluctuation in market sentiment, as the index closed lower by 0.40 percent on Tuesday, settling at 2,760.21 points.
This decline follows a modest gain the previous day, indicating a potential shift in investor confidence.
Throughout the session, the NEPSE exhibited volatility, with trading volume reaching over 16.7 million shares and a turnover of approximately Rs. 7.85 billion, highlighting active participation from market players despite the downturn.
Concurrently, the local gold market faced a decline, with gold prices dropping for the third consecutive day, now set at Rs. 162,600 per tola, reflecting broader trends in commodity pricing that may influence investor behavior.
In a positive development, NEPSE has renewed the memberships of 90 brokerage firms, ensuring regulatory compliance and operational continuity for these entities, which is crucial for maintaining investor trust.
Additionally, NMB Laghubitta reported a significant recovery in financial performance, posting a net profit of Rs. 71.55 lakhs in Q1, contrasting sharply with a loss in the previous year, which may signal potential growth in the financial sector.
The market also saw record-high prices for large cardamom, driven by increased demand ahead of Ramadan, suggesting that agricultural commodities may be gaining traction among investors.
Overall, while the NEPSE faced a slight decline, the underlying economic indicators suggest a complex landscape of opportunity and challenge in the Nepalese market.
NEPSE closes lower falling 0.40 percent on Tuesday
The Nepal Stock Exchange (NEPSE) finished the trading day on a down note on Tuesday, closing at 2,760.21 points, which is a decrease of 11.24 points or 0.40 percent.
This decline follows a significant gain of 22.14 points in the previous session, indicating a change in market sentiment.
The index started the day at 2,765.7 points and saw fluctuations, reaching a low of 2,741.63 and a high of 2,788.35.
Throughout the session, a total of 16,786,934 shares from 312 companies were exchanged over 82,570 transactions, leading to a turnover of Rs. 7.85 billion.
Gold price down by Rs 2,400 per tola
The prices of gold and silver declined on Tuesday. In the local market, the price of gold decreased by Rs 2,400 per tola.
Yesterday, the price of gold dropped by Rs 1,000 per tola. The decline in gold prices also occurred on Sunday. This marks the third consecutive day of falling gold prices.
According to the Nepal Gold and Silver Traders Association, the price of gold for today has been set at Rs 162,600 per tola. Yesterday, the price was Rs 165,000.
On Sunday, gold was traded at Rs 166,000 per tola. The price of gold has now decreased by Rs 2,400 rupees compared to yesterday’s rate.
In addition, the price of silver has fallen by Rs 30 per tola. Silver, which was traded at Rs 1,955 per tola on Monday, was priced at Rs 1,925.
NEPSE renews membership for 90 brokerage firms
The Nepal Stock Exchange Ltd. (NEPSE) has officially renewed the memberships of 90 brokerage firms and 2 stock dealers for the fiscal year 2081/82. This renewal applies to those companies authorized by the end of Ashoj 2081 to engage in securities trading activities, including buying and selling in the secondary market.
The renewed membership allows these brokerages and dealers to continue their operations, maintaining a regulated environment for investors participating in securities transactions. This update provides reassurance and clarity for all stakeholders, including investors who depend on these brokers and dealers to facilitate their trades.
NMB Laghubitta reports profit in Q1 2081/82
NMB Laghubitta Bittiya Sanstha Limited (NMBMF) announced a recovery in its financial performance for the first quarter (Q1) of the fiscal year 2081/82, achieving a net profit of Rs. 71.55 lakhs.
This represents a substantial improvement from the net loss of Rs. 4.73 crores recorded during the same period last year.
The company’s net interest income increased by 40.86 percent, reaching Rs. 8.08 crores, up from Rs. 5.74 crores in Q1 2080/81.
Additionally, operating profit turned positive at Rs. 71.39 lakhs, a notable improvement from the negative Rs. 4.70 crores reported in the previous year.
Prices of cardamom hit record highs
Prices for large cardamom have surged to nearly record levels, hitting Rs 2,500 per kilogram during trading on Monday.
The all-time high for large cardamom was Rs 2,700 in 2014, but the price fell to Rs 850 in 2018, marking a decline of approximately 68 percent.
Prices spiked again in 2016, reaching a peak of Rs 3,000 per kilogram before experiencing a steady decline, ultimately dropping to Rs 700 per kilogram in mid-July 2022.
Birtamod in Jhapa serves as the primary trading center for large or black cardamom, known as one of the world’s priciest spices. Traders report an increase in demand ahead of Ramadan, which is observed by Muslims globally, suggesting that prices may soon reach new highs.
(Prepared by Srija Khanal)
Comment