Currency
Nepali currency weakened by 86 paisa against a US dollar over this week, rendering imports expensive but raising income earning for exporters and remittance receivers. A dollar was exchanged at Rs 75.12 on Friday.
Nepal Rastra Bank had fixed the exchange rate of a dollar at Rs 74.26 when the market opened on Wednesday after Tihar holidays. Despite the global slip, dollar gained against the Indian currency, with which Nepali rupee is pegged, over the following days. As a result, rupee continued to tumble, dropping to Rs 74.55 per dollar on Thursday and losing further 57 paisa on Friday.
Likewise, rupee also weakened against a euro by Rs 1.79 paisa and a pound sterling by Rs 3.70 this week. On Friday, a euro was exchanged at Rs 112.49, while a pound sterling was exchanged at Rs 124.65.
Bullion
Gold price skyrocketed to touch a record high when the domestic bullion market closed on Friday. Dealers, who traded gold at Rs 25,765 per 10 grams (Rs 30,050 per tola) on Friday, attributed the rise to a sudden jump of gold price in the international market. “Gold bounced back to US$1,062 per troy ounce in New York COMEX House. Depreciation of Nepali currency too caused the price to go up,” said Tej Ratna Shakya, president of Nepal Gold and Silver Dealers´ Association.
The association, which sets domestic price of gold on the basis of price movement at New York COMEX House, had opened the post-Tihar trading on Wednesday at Rs 25,590 per 10 grams. As the international price soared amid devaluation of dollar against major rival currencies, gold became expensive by about Rs 100 on Thursday and further shot up by about Rs 100 per 10 grams on Friday.
The price of silver, however, remained constant at Rs 439 per 10 grams this week.
EBL pulls NEPSE down
The stock market re-commenced trading on Wednesday after Tihar holidays. The market turnover remained relatively weak as the market opened for only two days, with the average daily turnover dropping by almost 50%. The Nepse index (-1.38%) was primarily pulled down by the book closure of Everest Bank´s (-Rs 370) 30% bonus shares and 31.58% cash dividend. As a result, the Commercial Banking sub-index (-1.47%) lost points. The other biggest loser amongst the sectors was the ´Others´ sub-index (-2.68%) as the stock price of Nepal Telecom Company (- Rs 15), which witnessed a bulk trade on Wednesday, shed value.
Development Banking sector (-0.44%) lost points because of the decline in the share prices of Pashupati Development Bank (-Rs 20) and Clean Energy Development Bank (-Rs 40). Despite the top gains booked by finance companies like Patan Finance (+Rs 15) and People´s Finance (+Rs 8), the index of finance sector (-0.57%) declined. The Hydropower sector´s index (+0.87%) was the only sector to climb up this week with the positive contribution from the increase in the stock price of Chilime Hydropower (+Rs 20). Insurance sector remained relatively stable.
Meanwhile, 11 companies were suspended from trading on Thursday as they failed to pay the annual.
Kumari Bank (+Rs 2) and Annapurna Finance announced their upcoming AGMs to be held on November 15 and November 13, respectively for the approval of 10% bonus shares.
KIST Bank (-Rs 4) also published a notice about its upcoming AGM and the bank´s intention to increase its paid-up capital to Rs 5 billion by issuing 1:1.5 right shares in addition to the cash dividend of 3.5%.
Meanwhile, Unilever Nepal started distributing Rs 325 cash dividend from October 21; Miteri Development Bank closed its IPO issue on October 23; and Alliance Insurance announced issuance of 1:1 right shares from November 4.
Asian Life Insurance will start issuing its IPO from October 27. The benchmark index had broken its previous support level of 600 points; however, there are signs from technical analysis that the market will take a temporary bullish run in the coming week.
Related story
Rupee strengthens, gold price down
