KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The financial and cultural landscape of Nepal is marked by significant developments in various sectors.
The NEPSE experienced a slight dip on Wednesday, reflecting a cautious investor sentiment amidst market fluctuations, as seen in the modest turnover and share transactions.
Precious metal prices, especially gold and silver, displayed considerable volatility, with a drop in gold prices after recent gains, signaling uncertainty in the commodity market.
Meanwhile, Green Development Bank proposed a moderate dividend, underscoring its stable financial position despite the broader market turbulence.
On the institutional front, Santosh Koirala’s unopposed election as the President of the Nepal Bankers’ Association and the resumption of Bottlers Nepal Ltd.’s trading after regulatory compliance suggest a continued focus on governance and regulatory adherence.
Additionally, the upcoming Pokhara Street Festival and Ncell’s recognition as the top taxpayer reflect efforts to stimulate tourism and support local development, enhancing Nepal’s cultural and economic vibrancy.
Overall, the mix of financial stability, regulatory progress, and cultural promotion highlights the dynamic nature of Nepal’s evolving market and socio-economic environment.
NEPSE dips to settle at 2,628.26
The Nepal Stock Exchange (NEPSE) dropped by 5.60 points (0.21%) Wednesday, ending at 2,628.26, after a modest gain of 2.95 points in the previous session.
The market opened at 2,634.49 and experienced fluctuations, reaching a peak of 2,656.08 and a low of 2,621.00.
The total turnover stood at Rs. 4.27 billion, with 49,421 transactions involving 8,147,320 shares from 314 companies.
Gold prices drop by Rs 700 per tola after two-day rise
After two consecutive days of price increases, gold prices experienced a decline on Wednesday, dropping by Rs 700 per tola, which brings the current price to Rs 150,700 per tola.
This follows a rise of Rs 600 over Monday and Tuesday, with gains of Rs 400 and Rs 200, respectively.
The drop in gold prices contrasts with a significant Rs 2,200 per tola decrease just last Sunday, highlighting the volatility in the market.
Similarly, silver prices, which had remained stable for three days, have also seen a slight decrease of Rs 5 per tola, priced at Rs 1,835.
This fluctuation in precious metal prices reflects the ongoing uncertainty in the market, where both gold and silver are experiencing short-term volatility after recent fluctuations.
NEA earns Rs 9.11 billion profit
Nepal Electricity Authority (NEA) has recorded a profit of more than Rs 9.11 billion during the first three months of the current fiscal year.
From Shrawan to mid-Asoj, NEA’s total revenue, including interest and other income, reached Rs 41.80 billion, while its total expenses amounted to Rs 32.69 billion.
During this period, NEA spent Rs 32.69 billion on operational costs and maintenance.
Of this, Rs 26.77 billion came from electricity sales at various distribution centers, out of a total of Rs 28.95 billion.
Green Development Bank proposes 6.0527% dividend
Green Development Bank Limited (GRDBL) has proposed a 6.0527% dividend for the fiscal year 2080/81, comprising 5.75% in bonus shares and 0.3027% as a cash dividend.
With a paid-up capital of Rs. 53.87 crore, the bonus shares are valued at Rs. 3.09 crore, and the cash dividend amounts to Rs. 16.30 lakh.
The dividend is subject to approval from Nepal Rastra Bank and the bank’s Annual General Meeting (AGM). The bank’s current Last Traded Price (LTP) is Rs. 988.00.
Santosh Koirala elected as President of Nepal Bankers’ Association
Santosh Koirala, CEO of Machhapuchchhre Bank, has been elected as the unopposed President of the Nepal Bankers’ Association, a platform representing the CEOs of commercial banks.
Koirala was the only candidate for the role after Ashok Sherchan, CEO of Prabhu Bank, withdrew his nomination on Tuesday, clearing the way for Koirala’s election.
Both Sherchan and Koirala had initially filed for the presidential position last week. In addition, Surendra Regmi, CEO of Global IME Bank, has been elected as the association’s vice president.
Bottlers Nepal Ltd. resumes trading
The Nepal Stock Exchange (NEPSE) has lifted the suspension on the securities trading of Bottlers Nepal Limited (BNL), based in Balaju, Kathmandu.
The suspension followed the company’s failure to comply with Regulation 16(1)(b) of the Securities Listing Regulations, 2075.
The suspension was enforced to ensure transparency and uphold the integrity of the securities market, protecting investor interests.
Afterward, BNL submitted a compliance letter, reaffirming its commitment to adhering to the Securities Listing Regulations and the terms of its listing agreement.
NEPSE has now allowed the resumption of trading, while issuing a warning to BNL to ensure strict compliance with all regulatory standards moving forward, ensuring the continued protection of investors.
Pokhara Street Festival from December 28
The 26th Pokhara Street Festival, organized by the Restaurant and Bar Association (REBAN) Pokhara, will take place from December 28 to January 2 along the lakeside area, coinciding with the English New Year celebrations.
The event aims to boost both domestic and international tourism by showcasing Nepali culture, traditional foods, ethnic costumes, and cultural performances.
With the slogan “Let’s eat on the road, let’s enjoy on the road,” the festival also seeks to promote locally produced goods and provide a platform for the global promotion of Nepali products.
Ncell honored as top taxpayer by Lalitpur Metropolitan City
Ncell was recognized as the highest taxpayer by Lalitpur Metropolitan City for the last fiscal year.
Prime Minister KP Oli and Lalitpur Mayor Chiribabu Maharjan jointly awarded the certificate of honor to Ncell’s CEO and Managing Director Jabbor Kayumov.
The recognition highlights Ncell’s consistent contribution to Lalitpur’s development through its significant tax payments.
(Prepared by Srija Khanal)
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