KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The financial market saw mixed developments on Sunday, with the NEPSE index dropping by 25.41 points (0.96%) to close at 2,609.67, following another loss in the previous session.
The decline was exacerbated by technical issues within the NEPSE system, which hindered trading and led to low turnover.
Meanwhile, the price of gold saw a significant increase, rising by Rs 1,600 per tola to reach Rs 155,700, continuing a trend of higher prices, driven by global economic factors and investor demand.
In corporate news, Salt Trading Corporation (STC) and Nepal Life Insurance (NLIC) proposed cash dividends for their shareholders, while Nepal Micro Insurance announced an IPO targeted at foreign Nepali immigrants.
These corporate moves signal investor optimism despite market challenges, suggesting a broader focus on both traditional and emerging investment opportunities in Nepal.
NEPSE index drops 25.41 points
The Nepal Stock Exchange (NEPSE) experienced a significant decline on Sunday, dropping 25.41 points (0.96%) to close at 2,609.67, following an earlier loss of 18.14 points in the previous session.
The trading session was further impacted by technical issues with the NEPSE system, which caused delays in order placements.
Notably, NEPSE did not issue any notice about the system malfunction, which contributed to the low turnover. The index opened at 2,651.68 and fluctuated during the day, reaching a high of 2,654.82 and a low of 2,602.46.
Gold price increases by Rs 1,600 per tola
The surge in gold and silver prices in the domestic market reflects an ongoing upward trend, with gold increasing by Rs 1,600 per tola on Sunday, reaching Rs 155,700 per tola.
This follows a notable rise in prices last week, including a jump of Rs 8,800 per tola towards the end of the week.
Silver also experienced a modest rise, priced at Rs 1,860 per tola, up from Rs 1,845 per tola on Friday.
The continued increase in precious metal prices could be attributed to various market factors, including global economic trends, investor demand, and currency fluctuations, indicating a period of volatility in the market for these metals.
SAARC and IRENA sign MoU to strengthen regional cooperation in sustainable energy development
The South Asian Association for Regional Cooperation (SAARC) and the International Renewable Energy Agency (IRENA) signed a Memorandum of Understanding (MoU) to bolster regional cooperation in the domain of sustainable energy.
The document, signed by SAARC Secretary-General, Md. Golam Sarwar, and IRENA Director-General, Francesco La Camera, in Abu Dhabi, formalized a collaborative framework for promoting the widespread and sustainable use of all forms of renewable energy across the South Asian region.
STC proposes 10% cash dividend
Salt Trading Corporation Limited (STC) has recommended a 10% cash dividend to its shareholders from the profits of FY 2080/81.
The proposal was made during a board of directors meeting held on Poush 26, where it was decided to distribute the dividend from the fiscal year’s earnings. STC shares closed at Rs. 5,648.00.
Nepal Life Insurance proposes 21.05% dividend
Nepal Life Insurance Company Limited (NLIC) has proposed a 21.05% dividend, amounting to Rs. 1.72 Arba, for the fiscal year 2080/81.
During the 388th board of directors meeting held on Poush 26, it was decided to offer an 11.05% cash dividend (including tax) and 10% bonus shares. NLIC’s current paid-up capital stands at Rs. 8.20 billion.
The proposed dividend is subject to approval from the Nepal Insurance Authority and the upcoming AGM.
Nepal Micro Life Insurance issuing IPO for foreign Nepali immigrants
Nepal Micro Insurance Company Limited has announced its plan to issue an Initial Public Offering (IPO) to Foreign Nepalese Immigrants.
The IPO will be available from the 8th Magh to 22nd Magh, 2081. It is important to note that the offer will not be extended beyond the closing date for Nepalese citizens working abroad.
The company’s total issued capital is Rs. 75 Crores, of which 30%, or 22,50,000 unit shares valued at Rs. 22.50 Crores, will be issued to the general public.
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