This week, the NEPSE Index dropped by 0.79%. It closed at 2,678.47. The previous week, the index had gone up by 1.58%. There was some volatility this week. The index ranged between 2,725.95 and 2,666.72. The total turnover was Rs 39.24 billion.
NEPSE Performance
The NEPSE Index finished at 2,678.47, down 21.34 points. Last week, it ended at 2,699.81. This week showed a slight dip. The highest point reached was 2,725.95, and the lowest was 2,666.72. The volatility for the week was 59.23 points. This was lower than last week’s volatility of 102.16 points.
Tuesday saw the biggest rise. The index went up by 6.54 points. The turnover for that day was Rs 7.24 billion. The week’s total turnover reached Rs 39.24 billion. Despite the slight drop, the market showed steady activity.
Government Finances Struggling
The government’s finances have been weak this year. By January 2024, government income was only 44.83% of the annual target. The expenditure was at 40.58%. The government had planned a budget of Rs 1.860 trillion. It aimed to collect Rs 1.471 trillion in revenue. But the pace of income and spending has been slow.
Because of this, the government has revised its estimates. It now plans to spend 90.99% of the original amount. This comes to Rs 1.692 trillion. The slower-than-expected progress may lead to challenges in meeting fiscal goals. This could affect future economic policies.
Gold and Silver Prices Rise
In the commodities market, gold prices are still climbing. The price of gold went up by Rs 400 per tola. It reached Rs 170,200 per tola. This follows a rise of Rs 2,300 per tola earlier in the week. Silver prices also increased, in line with gold.
Gold and silver prices are rising due to global trends. Investors often buy these metals when there’s economic uncertainty. As inflation and other factors affect the global market, demand for gold and silver grows.
Vianet Communications Pays Rs 550 Million
Vianet Communications Limited has settled its dues for the fiscal year 2023/24. The company paid Rs 550 million. This covered outstanding dues for royalty fees. The payment was made to the Nepal Telecommunications Authority and the Ministry of Communications and Information Technology.
This payment is important for Vianet. It ensures the company meets its regulatory requirements. It also contributes to the Rural Telecommunications Development Fund (RTDF). This fund helps expand telecom services in rural areas. Vianet’s payment is a step towards strengthening Nepal’s telecom sector.
New Adventure Tourism Attraction in Parbat
A new attraction has opened in Parbat for adventure tourism. The world’s longest and tallest Megatroll is now in operation. It stands 225 meters tall and is 1,228 meters long. The Megatroll is located at The Cliff in Kushma.
The ride starts at a tower in Balewa and ends at another tower in Kushma Bazaar. The Megatroll offers a thrilling experience for tourists. It is expected to become a popular destination for adventure seekers. The Megatroll will bring more tourists to the area. This will help boost the local economy and promote tourism in Nepal.
Chulachuli Rural Municipality Launches Tourism Festival
Chulachuli Rural Municipality, located in Ilam, has launched the Ainapokhari festival. The festival will run for ten days. It aims to attract domestic tourists. The festival will highlight the natural beauty of the region. Rajendra Kerung, the chairman of Chulachuli Rural Municipality, opened the festival. He promised to work on developing the region’s tourism sector.
The Ainapokhari festival will focus on promoting the area’s scenic spots. Local officials hope the festival will help raise awareness of Chulachuli’s tourism potential. The festival will also encourage locals to protect their natural heritage. Tourism is seen as a key driver of economic growth in the area.
What’s Next for Nepal’s Economy?
Nepal’s economy faces a mixed outlook. The NEPSE Index showed a small decline this week. However, there are positive developments in other areas. Gold prices are rising, and new tourism attractions like the Megatroll are drawing attention. The launch of the Ainapokhari festival shows potential for growth in domestic tourism.
While the government’s finances are under pressure, the telecom and tourism sectors continue to grow. These developments offer hope for Nepal’s future economic performance. The challenge will be managing fiscal targets while capitalizing on the growth in tourism and telecom.
For more updates on Nepal’s economy, visit Nepal Monitor.
