KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The NEPSE Index saw a slight dip of 14.12 points, closing at 2,734.83, or a 0.51% decrease, following a similar decline in the previous session.
Despite the drop, market activity remained strong, with over 15 million shares traded across 308 companies and a turnover of NPR 7.91 billion. Janaki Finance led the turnover chart, reflecting investor interest.
Meanwhile, the Nepal Electricity Authority (NEA) threatened to cut power to 28 defaulting industries unless their outstanding bills are paid within 15 days, with the responsibility for recovery now shifted to the Ministry of Energy.
On the other hand, gold prices continued to slide, down Rs 9,000 from recent highs, while silver prices saw a slight increase.
In the aviation sector, international flights surged at Gautam Buddha International Airport due to daily closures at Tribhuvan International Airport for upgrades.
Arun Kabeli Power Limited reported a turnaround with a net profit of Rs 8.33 crore for Q1, reversing a loss from the previous year, while Citizen Investment Trust (CIT) posted a 13.62% increase in net profit to Rs 30.09 crore for the same period.
Additionally, the Australian Ambassador to Nepal reaffirmed support for Nepal’s development, focusing on strengthening bilateral relations and cooperation in key sectors.
NEPSE index drops 14.12 points to close at 2,734.83
The NEPSE Index experienced a modest decline of 14.12 points, closing at 2,734.83, down by 0.51% following a slight drop of 11.24 points in the previous session on Wednesday.
The index fluctuated within a narrow range, starting at 2,754.56 points and moving between a low of 2,728.11 and a high of 2,757.38 points.
Despite the small pullback, market activity remained robust, with over 15.36 million shares traded across 308 companies in 77,861 transactions, resulting in a turnover of NPR 7.91 billion.
Janaki Finance emerged as the top performer in terms of turnover, indicating strong investor interest in its shares.
NEA to cut power to 28 defaulting industries if dues not paid in 15 days
The Nepal Electricity Authority (NEA) has warned that it will disconnect power to 28 industries that have failed to pay their electricity bills.
These industries, which use dedicated and trunk lines, have not made any payments on their dues.
NEA Managing Director Kulman Ghising stated that if the industries do not settle their outstanding bills within the next 15 days, their power supply will be cut off.
Despite an earlier three-month deadline, the government has extended the period by another 15 days to allow for payment collection.
The responsibility for recovering these dues has now shifted to the Government of Nepal and the Ministry of Energy.
Gold price continues to drop
The continuous drop in gold prices over the past few days, now at Rs 162,200 per tola, reflects a significant decline from the record high of Rs 171,000 per tola just two weeks ago.
This Rs 9,000 decrease highlights a broader downward trend in the market, exacerbated by a Rs 2,400 drop on Tuesday alone.
This fluctuation in gold prices could be influenced by a variety of global and domestic factors, including changes in investor sentiment, currency exchange rates, and economic outlooks.
Meanwhile, silver prices have shown a modest increase, suggesting a divergence in the performance of precious metals.
The gold market’s volatility may create opportunities for investors, but also risks for those holding on to the metal in anticipation of further declines.
GBIA sees surge in international flights
As Tribhuvan International Airport (TIA) in Kathmandu begins its daily closures for upgradation work, international flight operations at Gautam Buddha International Airport (GBIA) in Lumbini have surged.
With TIA now closed for 10 hours each day for expansion, flights are being redirected to Gautam Buddha International, leading to a notable increase in passenger traffic.
Arun Kabeli power reports Rs. 8.33 crore profit in Q1
Arun Kabeli Power Limited (AKPL) has posted an impressive financial turnaround in the first quarter of fiscal year 2081/82, moving from a net loss to a net profit of Rs. 8.33 Crores, a significant recovery from the Rs. 15.94 Crores loss in the same period last year.
This positive shift was driven by a surge in power sales revenue, which reached Rs. 21.43 crores—compared to no revenue in the previous year’s first quarter.
In addition, the company managed to reduce costs effectively, with administrative expenses down by 29.30% and finance expenses reduced by 35.89%, both of which contributed to the overall profit growth.
Australian Ambassador reinforces support for Nepal’s development
Australian Ambassador to Nepal, Leann Johnston, met with Minister for Industry, Commerce, and Supplies Damodar Bhandari and reiterated Australia’s dedication to supporting Nepal’s development goals and committed to fostering greater collaboration in mutually beneficial areas.
They also discussed enhancing Nepal-Australia relations and identified areas for deeper cooperation.
Minister Bhandari expressed appreciation for Australia’s long-standing assistance in sectors like public health, livelihoods, and human resource development since the two countries established diplomatic ties in 1960.
CIT Reports 13.62% rise in Q1 net profit to Rs. 30.09 crore
Citizen Investment Trust (CIT) reported a 13.62% growth in net profit for the first quarter of fiscal year 2081/82, reaching Rs. 30.09 crore, up from Rs. 26.48 crore during the same period last year.
A key factor in this performance was a 12.31% reduction in the company’s insurance fund liability, which fell to Rs. 76.65 Crore by the end of Q1.
Total expenses increased by 9.19%, which slightly impacted overall profitability.
The company’s annualized earnings per share (EPS) rose to Rs. 19.87, with a net worth per share of Rs. 157.42 at the end of Q1 FY 2081/82.
(Prepared by Srija Khanal)
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