Nepse plunges by 51. 37 points on Wednesday
The Nepal Stock Exchange (NEPSE) plunged by 51. 37 points to close at 2,9630.91 points on Wednesday.
Similarly, the sensitive index dropped by 6. 93 points to close at 451. 28 points.
A total of 12,745,777-unit shares of 304 companies were traded for Rs 5. 93 billion.
Meanwhile, Kutheli Bukhari Small Hydropower Limited (KBSH) was the top gainer today with its price surging by 10. 00 percent. Likewise, Janaki Finance Company Limited (JFL) was the top loser as its price fell by 9. 58 percent.
At the end of the day, the total market capitalization stood at Rs 4. 36 trillion.
Gold price increases by Rs 400 per tola on Monday
The price of gold has increased by Rs 400 per tola in the domestic market on Monday.
According to the Federation of Nepal Gold and Silver Dealers’ Association, the precious yellow metal is being traded at Rs 151, 200 per tola today. It was traded at Rs 150, 800 per tola on Sunday.
Similarly, the silver is being traded at Rs 1, 840 per tola today.
Inflation in Nepal rises amid India’s price hike
The high inflationary pressure from neighboring India has led to a rise in food prices in Nepal. India’s inflation has reached 5.48 percent over the past four months, with vegetable prices remaining elevated since last month. The continuous price hikes in India over the past two months have also affected Nepal, contributing to an increase in inflation, according to Gunakar Bhatta, Executive Director of the Economic Research Department at Nepal Rastra Bank.
Overall inflation has risen due to the surge in food prices. According to the central bank, the annual point-to-point consumer inflation rate for the current fiscal year, as of October, reached 5.6 percent, higher than the 5.38 percent recorded in the same month last year. Inflation for food and beverages stood at 9.1 percent, while non-food and services saw an inflation rate of 3.65 percent. In October of the previous year, food and beverage inflation was 5.98 percent, and non-food inflation was 4.99 percent.
Subcategories within food and beverages experienced significant price increases. Vegetables saw inflation of 33.99 percent, lentils and pulses rose by 10.78 percent, food-related products increased by 10.15 percent, and ghee and oil prices climbed by 9.29 percent. However, the prices of spices, sugar and sugar products, and fish and meat decreased by 1.41 percent, 1.28 percent, and 0.02 percent, respectively. Bhatta pointed out that the overall price pressure in Nepal is primarily due to rising food prices in India, where food items are more expensive.
Nepal’s foreign exchange reserves have grown, as more foreign currency has been flowing into the country than leaving. As of October in the current fiscal year, foreign exchange reserves stood at Rs 2.05trn, compared to Rs 1.5trn during the same period last year. In US dollar terms, the reserves increased from $113m last year to $153m this year. Additionally, the current account balance has also risen, from Rs 97.1bn last year to Rs 143.42bn this year. Foreign direct investment has increased as well, with Rs 5.76bn flowing into Nepal compared to Rs 3.65bn last year.
Before the Covid-19 pandemic, economic activity in Nepal was robust, with growth surpassing seven percent. However, the economy has not yet returned to that level. Bhatta argues that with the increase in foreign exchange reserves, there is now a solid foundation to expand economic activities. While the external sector has strengthened over the past year and a half, domestic inflation remains high. He suggests that both the government and the private sector should focus on expanding economic activities, particularly in infrastructure development and construction projects. This expansion, combined with the management of surplus foreign exchange reserves and market liquidity, will help drive economic growth.
Kathmandu-Tikapur flight resumes after 27 years
Tikapur Airport in Kailali, which has been closed for regular operations since Feb 1997, officially resumed flight services on Sunday. The Tara Air flight YT 1701, carrying 16 passengers, landed at Tikapur Airport at 1:44 pm, marking the start of regular flights to the region.
The reopening of the airport has been made possible through the special efforts of Tikapur Municipality, with coordination between Tara Air and Yeti Airlines. Tikapur Airport first began operations on 11 Oct 1984.
According to Ram Lal Dagora Tharu, the Mayor of Tikapur Municipality, Yeti Airlines will operate flights from Kathmandu to Nepalgunj, with connecting flights to Tikapur provided by Tara Air. The initiative also involves active participation from local tourism businesses and other stakeholders.
Regular flights will operate every Sunday and Thursday, following the Kathmandu-Nepalgunj-Tikapur and Tikapur-Nepalgunj-Kathmandu routes. The municipality has signed an agreement with Tara Air to ensure a minimum of 15 seats per flight. Test flights have previously been conducted by Nepal Airlines and Tara Air.
The one-way fare for the Kathmandu-Tikapur flight has been set at Rs 9,000. Mayor Dagora Tharu expressed gratitude for the efforts of individuals and organizations, including Minister for Culture, Tourism, and Civil Aviation Badri Prasad Pandey, and Minister of State Arun Kumar Chaudhary, who played key roles in reopening the airport.
Minister Arun Chaudhary reiterated his commitment to further improving Tikapur Airport, with plans to introduce direct flights from Kathmandu to Tikapur shortly. He also thanked all parties involved in the airport’s reopening.
With the resumption of services, residents from nearby areas, including Kailali, Surkhet, and Bardiya, who previously relied on flights from Dhangadhi and Nepalgunj, are expected to benefit from the renewed connectivity. Although the runway is gravel-based, plans are in place to upgrade it once regular flights begin.
