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 positive performance on Wednesday, with the index rising by 45.88 points to reach 2,715.71, marking a 1.71% increase.
This growth was largely driven by banking stocks, contributing to a total of 11.386 million shares worth NPR 5.55 billion being traded.
Of the 308 companies traded, 211 saw their share prices increase, while 29 experienced declines, and 3 remained unchanged.
Despite a strong performance in most sectors, mutual funds showed no gain, reflecting the market’s resilience. Gold prices also surged by Rs. 2,000 per tola, reaching Rs. 154,200 for fine gold, indicating volatility in the precious metals market.
However, silver prices remained stable. Meanwhile, Finance Minister Bishnu Prasad Paudel faces growing criticism for failing to address Nepal’s economic challenges, casting doubt on his ability to implement necessary reforms.
In the financial sector, ICRA Nepal reaffirmed a BB rating for Terhathum Power Company, indicating moderate financial risk.
Hydroelectricity Investment and Development Company Limited (HIDCL) proposed a 5.25% cash dividend, while the Nepal Bankers’ Association prepares for an election to choose its new president.
Labor Minister Sharat Singh Bhandari highlighted the private sector as the primary source of employment in Nepal, emphasizing the government’s role in creating enabling conditions.
Meanwhile, farmers in Tanahun’s Devghat Rural Municipality-3 are benefiting from a booming orange farming industry, with an estimated Rs. 30 million expected from orange sales this year, providing a significant income boost to local households.
NEPSE gains 45.88 points as banking stocks lead rally
The Nepal Stock Exchange (NEPSE) saw a positive performance on Wednesday, with the index rising by 45.88 points to reach 2,715.71 points.
This marked a 1.71 percent increase, with a total of 11.386 million shares worth NPR 5.55 billion being traded.
In total, 211 companies saw their share prices increase, while 29 companies experienced a decline.
The share prices of 3 companies remained unchanged. A total of 308 companies were traded, with 56,350 transactions taking place.
While NEPSE closed higher, all sectors except mutual funds posted gains. This indicates a resilient market performance, with positive investor sentiment driving the market’s recovery.
Gold prices up by Rs. 2,000 per tola
Gold prices experienced a notable rise on Wednesday, with the price of fine gold increasing by Rs. 2,000 per tola, reaching Rs. 154,200, up from Rs. 152,200 the previous day.
Tejabi gold also saw a price increase, standing at Rs. 153,500 per tola, compared to Rs. 151,500 yesterday. This surge in gold prices comes after the metal hit a peak of Rs. 171,000 per tola on October 31, 2024.
However, silver prices remained stable, holding steady at Rs. 1,925 per tola. This fluctuation in gold prices reflects the ongoing volatility in the precious metals market.
Finance Minister faces criticism over economic challenges
Finance Minister Bishnu Prasad Paudel is facing increasing criticism over his handling of Nepal’s economic challenges.
Since taking office, Paudel, also the Deputy Prime Minister and a senior figure in the CPN-UML, has been tasked with reversing the country’s economic slowdown and implementing the promises outlined in the seven-point agreement with the Nepali Congress.
Paudel had pledged to revive the economy, generate employment, and restore confidence in the private sector.
However, despite his ambitious promises to break the cycle of despair and foster hope, lawmakers, including those within his own party, are now questioning his effectiveness.
The growing dissatisfaction signals mounting concerns over his ability to deliver on the critical economic reforms needed for the country’s recovery.
ICRA Nepal reaffirms BB rating for Terhathum Power Company
ICRA Nepal assigned new ratings to several hydropower and microfinance companies, reflecting their financial stability.
The agency has reaffirmed the [ICRANP-IR] BB Issuer Rating for Terhathum Power Company Limited (TPC), indicating a moderate risk of the company failing to meet its financial commitments on time.
The rating scale, which ranges from [ICRANP-IR] AA to [ICRANP-IR] C with +/- modifications, positions [ICRANP-IR] BB between [ICRANP-IR] BB+ and [ICRANP-IR] BB-.
Additionally, ICRA Nepal has upgraded Ankhukhola Hydropower Company Limited (AKJCL) from [ICRANP-IR] B- to [ICRANP-IR] C+, following a prior downgrade to [ICRANP-IR] D.
HIDCL proposes 5.25% cash dividend
Hydroelectricity Investment and Development Company Limited (HIDCL) has proposed a 5.25% cash dividend for the fiscal year 2080/81 and announced its 13th AGM on Poush 24, 2081.
The board of directors approved the 5.25% dividend, based on the company’s paid-up capital of Rs. 2.46 billion.
The book closure date is set for Poush 12, meaning investors holding shares before this date are eligible for the dividend and can participate in the AGM. HIDCL’s stock closed at Rs. 248.50 yesterday.
Nepal Bankers’ Association to hold election
An election is taking place to elect the new leadership of the Nepal Bankers Association.
The election, which will determine the next president of the association, will take place during the annual general meeting on the Nepali date of Poush 3.
Prabhu Bank CEO Ashok Sherchan and Machhapuchhre Bank CEO Santosh Koirala have both filed their candidacies for the position of president.
With one day left to submit nominations, both candidates have officially entered the race for the leadership of the Association, which represents 20 commercial banks.
Private sector main source of employment: Labor Minister
Minister for Labor, Employment, and Social Security Sharat Singh Bhandari emphasized that the primary source of employment in the country is the private sector.
Minister Bhandari made this statement during an interaction program with relevant agencies and employers, organized by the National Vocational Training Institute in Bhaisepati, Kathmandu.
He stated, “The government does not provide employment but creates enabling conditions. Since the private sector is the employer worldwide, it is also the main source of employment here.”
Generous Income from orange farming
Farmers in Devghat Rural Municipality-3, Tanahun, are earning significant income from orange farming.
It is estimated that oranges worth Rs 30 million will be sold this year from the areas of Batak, Lungring, Chipchipe, Chapswanra, and Dagara in the ward alone.
Local farmer Bhim Bahadur Rana reported that the oranges from this ward are expected to generate over Rs 30 million in sales this year.
He also noted that a single household in Lungring expects to sell oranges worth more than Rs 2 million.
(Prepared by Srija Khanal)
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