Latest NEPSE News & Share Market Updates
Prime Minister Balendra Shah Holds Talks with Madhesh Leaders Over Madhesh Tensions
Prime Minister Balendra Shah has started discussions with leaders of various political parties representing the Madhesh region. The meeting was called to address the current political situation and recent tensions reported in several Madhesh districts, including Sunsari. The high level meeting is taking place at the Office of the Prime Minister and Council of Ministers in Singha Durbar. Discussions are primarily focused on reviewing the security situation in affected areas and finding a peaceful resolution through dialogue and mutual agreement. Prominent Madhesh focused political figures are participating in the talks, including Janamat Party Chairman Dr. C.K. Raut, Loktantrik Samajwadi Party Chairman Mahantha Thakur, senior leader Rajendra Mahato, former Madhesh Province Chief Minister Lalbabu Raut, and Nepal Samajwadi Party Chairman Samim Miya Ansari. Other leaders present include Ram K. Sharma, Prabhu Sah, Amaresh Kumar Singh, Sharat Singh Bhandari, and Jayakanta Raut. According to government officials, the meeting was organized as part of an effort to resolve recent regional unrest peacefully. The primary goal is to maintain local peace, strengthen social harmony, and guarantee safety and security for all citizens.
NRB to Collect 25 Billion from BFI's for 61 Days
Nepal Rastra Bank (NRB) has announced that it will collect deposits worth Rs. 25 billion from banks and financial institutions through a bidding process today. According to a notice published today, the central bank will collect the deposits for a period of 61 days. The bidding will take place on Shrawan 15 (July 31) through the Online Bidding System at 3 Pm. The interest rate will be decided through the bidding process. The minimum amount for bidding has been set at Rs. 10 crore, while the maximum limit is (In multiples of) 5 Crore, up to the total issue amount. However, institutions can submit multiple bids within the total announced amount. Only licensed ‘A’, ‘B’, and ‘C’ class banks and financial institutions approved by NRB are allowed to take part in the bidding. The deposits collected will be returned along with interest on Ashoj 14, 2083 (September 30, 2026).
Janakpurdham Curfew Disrupts Vital Rail Service: Jayanagar-Janakpur-Bhangaha Route Suspended Amidst Security Concerns
Janakpurdham, a pivotal city in Nepal's Terai region, has seen its crucial Jayanagar-Janakpur-Bhangaha rail service come to an abrupt halt following the imposition of a curfew by local administration. This suspension, driven by heightened security concerns, underscores the fragility of regional stability and its immediate impact on public services and economic activity. The Nepal Railway Company, prioritizing passenger safety, announced the indefinite suspension of operations until the curfew is lifted and security conditions are deemed safe for resumption. The decision to suspend the rail service was made with immediate effect after the local authorities in Janakpurdham issued a curfew order across various parts of the city. Ajay Kumar Singh, the Acting Head of Administration at the Nepal Railway Company, confirmed the complete cessation of rail operations during the curfew period. This vital railway line, which connects Jayanagar in India to Janakpurdham in Nepal's Dhanusha district and extends to Bhangaha in Mahottari, serves as a critical artery for both passenger transport and goods movement across the border and within the region. The sudden disruption has left thousands of daily commuters, local traders, and even tourists in a state of considerable inconvenience. For many, the train is not just a mode of transport but a lifeline, facilitating access to markets, educational institutions, healthcare facilities, and employment opportunities. The Jayanagar-Janakpur-Bhangaha route, a symbol of cross-border connectivity and regional development, has been instrumental in boosting local economies by enabling smoother trade and fostering cultural exchanges. Its closure, even temporarily, translates into significant logistical challenges and potential economic losses for businesses reliant on the railway for transporting goods and for individuals whose livelihoods depend on daily travel. While the specific reasons for the curfew have been broadly cited as "maintaining peace and security," such measures often reflect underlying tensions or potential unrest within the region. For investors, particularly those with interests in regional infrastructure, logistics, or local businesses, these events serve as a stark reminder of the non-market risks associated with operating in certain geographies. The ability of local administrations to impose such sweeping restrictions, while necessary for public order, can have immediate and tangible effects on operational continuity and profitability. The Nepal Railway Company's swift action to suspend services highlights its commitment to passenger safety, a paramount concern in times of civil unrest. However, the indefinite nature of the suspension means that the resumption of services is entirely contingent upon the assessment of the security situation by local authorities. Until then, alternative modes of transport will bear the brunt of the displaced passenger and cargo traffic, likely leading to increased costs and travel times. This incident in Janakpurdham underscores the broader challenges faced by developing regions in balancing security imperatives with the need for uninterrupted public services and economic activity. As Nepal continues its path towards economic development and enhanced connectivity, ensuring stable and predictable operational environments for critical infrastructure like railways remains crucial for fostering investor confidence and supporting sustainable growth. The community now awaits the lifting of the curfew, hoping for a swift return to normalcy and the restoration of this indispensable rail link.
Nepal Rastra Bank Mandates PSPs to Boost Digital Tax Payment Incentive Program
In a significant move to accelerate the adoption of digital payment methods for tax collection, Nepal Rastra Bank (NRB), the central bank of Nepal, has issued crucial directives to all licensed Payment Service Providers (PSPs). This initiative aims to bolster the effectiveness of the 'Taxpayer Incentive Gift Program, 2083' launched by the Nepal Government's Inland Revenue Department (IRD). The 'Taxpayer Incentive Gift Program, 2083' is designed to encourage taxpayers to utilize electronic systems for their tax payments, thereby enhancing efficiency, transparency, and convenience in the tax collection process. Recognizing the pivotal role of digital payment platforms in achieving this goal, NRB's Payment Systems Department has instructed PSPs to actively facilitate and promote the program through their mobile applications and services. Under the directive, signed by NRB Executive Director Nischal Adhikari, PSPs are required to implement several key measures to ensure seamless participation and clear communication for taxpayers. These measures are critical for establishing interoperability within the electronic payment ecosystem and maximizing the program's reach and impact. Firstly, all PSPs must integrate a dedicated 'FAQ' (Frequently Asked Questions) section within their mobile applications. This section should specifically address common queries related to the 'Taxpayer Incentive Gift Program, 2083'. The inclusion of an FAQ aims to provide immediate clarity to users, reduce the burden on customer support, and empower taxpayers with readily accessible information, fostering greater confidence in digital transactions. Secondly, PSPs are mandated to send out timely notifications to their customers via mobile apps. These notifications are to commence from Shrawan 16 (July 31st) to pre-inform users about the program, which is officially set to launch on Shrawan 21 (August 5th). Proactive communication is essential to build awareness and ensure that taxpayers are well-informed about the opportunity to participate and potentially receive incentives for their digital tax payments. Lastly, if participation in the incentive program necessitates an update to the user's mobile application, PSPs must clearly communicate this requirement through notifications. This ensures that technical readiness does not become a barrier to entry, allowing all eligible taxpayers to seamlessly engage with the program after ensuring their apps are up-to-date. This strategic intervention by Nepal Rastra Bank underscores the government's commitment to fostering a digital economy and modernizing public services. By leveraging the widespread reach of digital wallets and mobile banking applications, the program is expected to significantly increase the volume of digital tax payments. This not only offers greater convenience and security for taxpayers but also streamlines the administrative processes for the Inland Revenue Department, reducing reliance on cash transactions and enhancing data accuracy for economic planning. For investors, this development signals a growing emphasis on digital infrastructure and financial technology in Nepal. It could lead to increased transaction volumes for PSPs and a broader adoption of digital financial services, potentially boosting the overall digital payment ecosystem. The move is a testament to Nepal's ongoing journey towards a more digitized and efficient financial landscape, promising a more transparent and accessible system for both citizens and the government.
Ten Climbers, Including Five Nepalis, Feared Missing After Avalanche on Pakistan’s Broad Peak
The world renowned climber Nirmal Purja led international expedition team of 10 mountaineers is feared missing after an avalanche struck Broad Peak in Pakistan. The Alpine Club of Pakistan received reports on Thursday that an avalanche had struck the team led by Purja, 43, and there has been no communication from the climbers since, the Associated Press (AP) reported quoting club vice-president, Karrar Haidri. According to the AP, the team consists of five Nepalis, a Pakistani, an Omani, an American, a Chinese and next one whose nationality is not confirmed. Meanwhile, Minister for Culture, Tourism and Civil Aviation Ganesh Paudel has expressed a deep concern to the reports of an avalanche and the loss of contact with Nirmal Purja 'Nims Dai' and fellow Nepali climbers in Pakistan. Taking to his social site, Minister Paudel stated, "We are in regular contact with the Pakistani authorities and receiving updates on the situation". The Minister has expressed hope for the safe return of all Nepali climbers missing in the avalanche.
Rajbiraj Under Indefinite Curfew Amidst Heightened Security Concerns: Implications for Regional Stability and Investor Sentiment
The District Administration Office (DAO) of Saptari has taken decisive action by imposing an indefinite curfew in several sensitive areas within Rajbiraj Municipality, the district headquarters. This measure, effective from 5:00 AM today until further notice, underscores a proactive approach to maintaining law and order amidst what authorities describe as a sensitive security situation. The decision, stemming from a meeting of the District Security Committee, was formally announced through an order issued by Chief District Officer Shyam Krishna Thapa, invoking Section 6 of the Local Administration Act, 2028. This imposition of a curfew signifies a critical development for residents and businesses in the affected zones. Under the stringent terms of the order, all forms of public movement, gatherings, processions, demonstrations, meetings, and sit-ins are strictly prohibited. The specified areas under curfew are geographically delineated to ensure comprehensive coverage of potential flashpoints. To the east, the curfew extends to the Khandokhola (river); to the west, it covers the Judani-Dhalai road section of the postal highway; the northern boundary is marked by Basbitti Chowk of the Rupani road; and to the south, it encompasses the Koshi Paschim main canal, extending into Bishnupur Rural Municipality. These precise boundaries indicate a well-thought-out strategy to contain any potential unrest and ensure public safety. For investors and market participants, such developments in key regional centers like Rajbiraj warrant close attention. While the immediate impact might seem localized, prolonged periods of unrest or curfews can have broader implications for regional economic activity and investor confidence. Rajbiraj, as a significant administrative and commercial hub in the eastern Terai region, plays a role in local supply chains and economic transactions. Disruptions here, even temporary, can affect the movement of goods, daily commerce, and the operational stability of businesses with a presence in the area. The broader context of recent reports of unrest and security concerns in other parts of the eastern region, such as Siraha and Dhanusha, suggests a heightened state of vigilance across several districts. Although this specific incident in Rajbiraj is distinct, it contributes to an overarching narrative of regional instability that can influence investor sentiment towards the overall economic environment. The administration's call for full public compliance with the curfew order highlights the seriousness of the situation and the imperative to restore normalcy swiftly. Maintaining security and public order is paramount for fostering a stable environment conducive to economic growth and investment. Investors often look for predictability and stability in regions where they deploy capital. Therefore, the effectiveness and duration of this curfew, and the subsequent return to peace, will be crucial indicators. Companies with operations, supply chain dependencies, or significant customer bases in the Saptari district and surrounding areas might face temporary operational challenges. Monitoring the situation closely for de-escalation and the lifting of restrictions will be key for assessing any potential short-to-medium term impacts on regional economic performance and, by extension, on the broader market sentiment. The government's ability to manage such situations effectively is a critical factor in maintaining both social harmony and economic stability.
Gold Price Reaches Rs. 285,000 Per Tola; Check How Much it Increases Today
Gold prices have witnessed a moderate rise in the domestic market today, rises by Rs. 1000 per tola to settle at Rs. 285,000 per tola, up from the previous rate of Rs. 284,000 per tola. The Federation of Nepal Gold and Silver Dealers' Association (FENEGOSIDA) reported that Tejabi gold price also increases by Rs. 1000 per tola to reach Rs.284,300 per tola, compared to Rs. 283,300 per tola on the previous day. Similiarly, silver prices moved in the same direction, rises by Rs. 50 per tola to Rs.4,360 per tola from Rs. 4,310 per tola on the previous day.
Muktinath Bikas Bank Signs Agreement with Nagarjun Municipality for Concessional Loans
Muktinath Bikas Bank Limited has signed an agreement with Nagarjun Municipality to provide concessional loans aimed at promoting agriculture, tourism, small and medium enterprises and women entrepreneurship to generate local employment and boost economic activity. The agreement was signed by Tej Bahadur Giri, Chief of the Agriculture and Inclusive Investment Department at Muktinath Bikas Bank and Sushila Karki, Acting Mayor of Nagarjun municipaltiy, in the presence of bank staff and represantives of the local body. Under the agreement, eligible entrepreneurs recommended by the municipality can obtain collateral-free loans of up to Rs 200,000 from the bank, depending on the nature of their business. Additionally, eligible borrowers will receive a 100 percent interest subsidy under the municipality's "Concessional Interest Subsidy Procedure, 2080." On the occasion, the bank reiterated its commitment to contributing to entrepreneurship development, expanding financial access, financial inclusion, and sustainable economic development through collaboration with local governments.
Sanakisan Bikas Laghubitta Navigates Profit Contraction with Strong Distributable Earnings and Asset Growth in Q4
Sanakisan Bikas Laghubitta Bittiya Sanstha Limited (SKBBL), a prominent wholesale microfinance institution in Nepal, has released its unaudited financial results for the fourth quarter of the last fiscal year, presenting a nuanced picture of its performance. While the institution experienced a contraction in its net profit compared to the previous year, the report underscores robust underlying financial health, characterized by strong distributable earnings, a growing asset base, and effective control over non-performing loans. For the fiscal year ending in the fourth quarter, SKBBL reported a net profit of NPR 653.1 million. This figure represents a 25.36% decrease when compared to the NPR 875 million recorded in the same period of the prior fiscal year. This decline in profitability was primarily influenced by a reduction in core revenue streams. The microfinance institution's net interest income saw a notable dip, falling from NPR 1.7963 billion to NPR 1.27397 billion. Concurrently, operating profit also contracted, moving from NPR 1.27 billion to NPR 930 million. This trend might reflect a challenging operating environment, potentially influenced by factors such as increased competition, evolving interest rate dynamics, or higher provisioning requirements within the microfinance sector. Investors often scrutinize these metrics closely as they indicate the efficiency and profitability of a financial institution's core lending activities. Despite the contraction in net profit, a key highlight for investors is SKBBL's impressive distributable profit. Thanks to a strong foundation of retained earnings and prudent regulatory adjustments, the microfinance institution boasts a substantial total distributable profit of NPR 1.6484 billion as of the end of Ashar. This translates to a robust distributable profit per share of NPR 33.46, based on its paid-up capital. This strong distributable capacity provides a solid basis for the company to offer attractive dividends to its shareholders in the current fiscal year, signaling confidence in its long-term financial stability and commitment to shareholder returns, even amidst short-term profit fluctuations. Furthermore, SKBBL has demonstrated significant growth in its financial base and overall assets. The institution's paid-up capital expanded from NPR 4.3126 billion to NPR 4.9271 billion, reinforcing its capital adequacy and capacity for future growth. Complementing this, the reserve fund stood at a healthy NPR 4.3328 billion, providing an additional buffer against potential risks and supporting its operational resilience. As a wholesale lender, SKBBL plays a crucial role in channeling funds to smaller microfinance institutions and cooperatives. Its net loans to small farmers and other cooperatives increased from NPR 34.30 billion to NPR 35.3929 billion, indicating continued expansion of its lending portfolio and outreach. The overall total assets of the company also grew, rising from NPR 41.50 billion to NPR 41.9924 billion, reflecting a healthy balance sheet expansion. The report also highlighted the institution's strong position in controlling non-performing loans, a critical indicator of asset quality and risk management effectiveness in the microfinance sector. In conclusion, while Sanakisan Bikas Laghubitta's latest quarterly report shows a dip in net profit, a deeper analysis reveals a financially sound institution with significant strengths. Its robust distributable profit, expanding capital base, growing loan portfolio, and effective NPL management position it favorably for sustained performance. For investors, SKBBL presents a compelling case of an institution balancing short-term market dynamics with long-term strategic growth and shareholder value creation, making it a noteworthy entity in Nepal's evolving financial landscape.
Saptakoshi Development Bank Reports Strong Q4 Performance, Significantly Reducing Non-Performing Loans
Saptakoshi Development Bank Ltd. (SAPDBL) has released its unaudited financial statements for the fourth quarter of the last fiscal year, revealing a substantial improvement in its financial health. The report highlights a remarkable increase in net profit and a significant reduction in non-performing loans (NPLs), key indicators that underscore the bank's enhanced operational efficiency and strengthened risk management framework. For the fiscal year ending Ashar Masanta (mid-July), Saptakoshi Development Bank achieved a net profit of NPR 15.04 crore. This represents an impressive 86.18% surge compared to the NPR 8.08 crore recorded in the same period of the previous fiscal year. Such robust growth in profitability is a testament to the bank's improved operational performance and its ability to generate higher earnings. While the net interest income experienced a slight dip, moving from NPR 23.45 crore to NPR 23.34 crore, the bank's operating profit saw a remarkable increase, escalating from NPR 10.68 crore to NPR 24.79 crore. This substantial rise in operating profit, despite a marginal decline in net interest income, suggests effective cost management and potentially higher income from other operational avenues, contributing significantly to the bottom line. A pivotal achievement for SAPDBL has been its success in drastically reducing non-performing loans. The bank managed to bring down its NPL ratio from a concerning 10.65% to a more manageable 6.15%. This reduction is a critical indicator of improved asset quality and more effective credit risk management practices. A lower NPL ratio not only enhances the bank's profitability by reducing the need for loan loss provisions but also boosts investor confidence and strengthens its regulatory standing. Furthermore, the bank's capital adequacy ratio (CAR) has improved from 8.29% to 11.29%. This increase in CAR signifies a stronger capital base, providing a greater buffer against potential financial shocks and aligning the bank more closely with regulatory requirements for capital strength, ensuring long-term stability. Despite these significant strides in profitability and asset quality, Saptakoshi Development Bank is not yet in a position to distribute dividends to its shareholders. The bank continues to grapple with accumulated losses from previous periods. However, the positive performance in the last fiscal year has helped mitigate this challenge, with the accumulated loss reducing from a negative NPR 62.40 crore to a negative NPR 55.88 crore. This reduction is a crucial step towards eventually clearing the deficit and paving the way for future dividend distributions, which will be a key milestone for attracting and retaining investors. In terms of its financial structure, the bank's paid-up capital stands at NPR 83.43 crore, while its reserve fund has grown to NPR 44.80 crore. This growth in reserves further solidifies its financial foundation. The bank has also demonstrated considerable expansion in its business operations. Total deposits surged from NPR 5.337 billion to NPR 8.8852 billion, reflecting increased public trust and successful deposit mobilization strategies. Concurrently, loans and advances to customers increased from NPR 5.0383 billion to NPR 5.5625 billion, indicating a healthy growth in its lending portfolio. The overall size of the bank's total assets expanded from NPR 8.50 billion to NPR 10.113 billion, underscoring its growing market presence and operational scale within the competitive Nepali banking sector. The improvements in Saptakoshi Development Bank's financial health, particularly the reduction in NPLs and the increase in profitability, are encouraging signs for its stakeholders. While the path to dividend distribution is still underway due to historical accumulated losses, the current trajectory suggests a bank on a steady course towards sustainable growth and enhanced financial stability within Nepal's competitive banking landscape. Investors will be keenly watching how the bank continues to manage its legacy issues while capitalizing on its recent operational successes.
SEBON Unveils Consultation Paper to Introduce Short Selling, Margin Lending, and SLB in Nepali Capital Market
The Nepal Securities Board (SEBON) has taken a significant stride towards modernizing the Nepali capital market by initiating the process to introduce advanced securities financing services. In a landmark move, SEBON has publicly released a comprehensive 'Consultation Paper' outlining the framework for 'Margin Lending,' 'Securities Lending and Borrowing' (SLB), and 'Short Selling.' This marks the first instance where SEBON has published such a detailed consultation document, signaling a proactive approach to gauge market readiness and solicit invaluable feedback from all relevant stakeholders. This strategic initiative aligns directly with the Nepal government's budget statement for the fiscal year 2083/84, which explicitly announced the phased introduction of sophisticated market instruments such as intraday trading, short selling, and derivatives. SEBON's current action is a crucial step in materializing this vision, aiming to elevate the domestic capital market to international standards. **A Leap Towards a Competitive and Modern Market** Globally, advanced capital markets leverage services like margin trading, securities lending, and covered short selling to enhance their depth, competitiveness, and overall efficiency. SEBON firmly believes that integrating these instruments will serve as a cornerstone in transforming Nepal's capital market, making it more robust and attractive to a broader spectrum of investors. The board articulated its conviction, stating, "These instruments will prove to be a milestone in making Nepal's capital market international standard and expanding investor participation." The introduction of these mechanisms is expected to inject greater liquidity into the market, foster price discovery, and provide investors with more diverse strategies to manage risk and capitalize on market movements. Margin lending, for instance, allows investors to borrow funds against their securities to purchase more shares, potentially amplifying returns but also increasing risk. Securities Lending and Borrowing (SLB) facilitates the temporary transfer of securities from one party to another, typically for short selling or to cover failed trades. Short selling, a more advanced strategy, involves selling borrowed securities with the expectation of repurchasing them at a lower price in the future, profiting from a decline in value. SEBON's focus on 'covered short selling' indicates a cautious approach, ensuring that sellers must first borrow the shares before selling, thereby mitigating certain risks associated with naked short selling. **Deep Dive into the Consultation Paper** The meticulously prepared consultation paper by SEBON is structured into four pivotal chapters, each addressing a critical aspect of this market transformation: 1. **Current State of Nepal's Capital Market and the Need for Reform:** This section likely provides an in-depth analysis of the existing market infrastructure, its limitations, and the compelling reasons why these new financial services are essential for its evolution. 2. **International Experience, Best Practices, and Lessons for Nepal:** This chapter will offer insights into how similar instruments are implemented and regulated in mature markets worldwide, drawing crucial lessons and identifying best practices adaptable to the Nepali context. 3. **Regulatory Impact Analysis:** A thorough assessment of the potential regulatory implications, challenges, and necessary adjustments to the existing legal and operational framework will be detailed here. 4. **Appropriate Models and Specific Policy Recommendations for Margin Lending, Securities Lending and Borrowing, and Short Selling for Nepal:** This crucial section will propose tailored models and policy guidelines specifically designed for the Nepali market, considering its unique characteristics and developmental stage. Furthermore, the paper meticulously delineates the roles and responsibilities of key market participants, including the Nepal Securities Board itself, the Nepal Stock Exchange (NEPSE), CDS and Clearing Limited (CDSC), securities brokers, banks and financial institutions, and institutional investors. It also comprehensively addresses vital areas such as legal reforms, the modernization of information technology infrastructure, and the implementation of robust risk management measures to ensure a secure and efficient trading environment. **A Call for Collaborative Development** SEBON has extended an open invitation to all stakeholders, including investors, brokers, financial institutions, and market experts, to provide constructive feedback on this consultation paper. This collaborative approach underscores SEBON's commitment to developing a regulatory framework that is both comprehensive and practical. The insights gathered from these suggestions will be instrumental in the subsequent formulation of specific regulations, including the 'Margin Lending Regulations,' 'Securities Lending and Borrowing Regulations,' and 'Covered Short Selling Regulations.' The successful implementation of these new services is anticipated to bring about a paradigm shift in the Nepali capital market. SEBON projects increased market liquidity, enhanced stability, and significant support for the long-term capital mobilization efforts of the private sector. This initiative is poised to unlock new avenues for investment, foster greater market efficiency, and ultimately contribute to the broader economic development of Nepal. Interested parties can access the detailed consultation paper via a link or QR code available on SEBON's official website.
SEBON Orients Merchant Bankers on New IPO Standards; Primary Market White Paper Forthcoming
The Nepal Securities Board (SEBON) has initiated a significant stride towards bolstering the integrity and transparency of the primary capital market. In a recent orientation and interactive program held at its office, SEBON informed chief executive officers and high-ranking officials from various merchant banking institutions about the new 'Standards related to Financial Review for Initial Public Offering, 2082'. This crucial initiative aims to make the public issuance process more responsible, transparent, and qualitatively robust. Effective from Baisakh 1, 2083 (mid-April 2026), these new standards are meticulously designed to enhance the quality, reliability, and financial governance of financial statements submitted by organizations seeking to go public. The program saw the participation of approximately 65 individuals, including SEBON's Chairman, board members, and representatives from various merchant bankers, underscoring the collaborative effort required for such pivotal reforms. Addressing the attendees, Dr. Gopal Prasad Bhatta, Chairman of SEBON, reiterated the board's unwavering commitment to continuous policy reforms aimed at fostering a more organized, transparent, and investor-friendly primary capital market in Nepal. He made a significant announcement regarding the board's preparations to unveil a 'Primary Market Reform White Paper'. This forthcoming white paper is expected to place a strong emphasis on safeguarding investor interests and driving a qualitative transformation within the primary market, signaling a strategic vision for its future growth and maturity. Chairman Bhatta also highlighted the indispensable role of merchant bankers in the primary securities market. He urged them to embrace greater responsibility and proactively champion the protection of investor rights. He expressed confidence that the implementation of these new standards would significantly strengthen the financial health and corporate governance of issuing companies, thereby building greater trust among investors. During the program, Mr. Anandaraj Sharma Wagle, a SEBON board member and President of the Institute of Chartered Accountants of Nepal (ICAN), delivered a detailed presentation on the technical aspects of the new standards. He elaborated on the objectives behind their issuance, the implementation process, and their utility, emphasizing that these standards would serve as a cornerstone in ensuring the reliability of financial statements submitted for public issuance. Queries raised by participating merchant bankers during the interactive session were addressed by SEBON board members, fostering a clear understanding of the new regulatory framework. This comprehensive orientation program is anticipated to facilitate a smoother implementation of the new standards, ultimately enhancing public confidence in the capital market. By elevating the benchmarks for financial scrutiny and corporate governance, SEBON is not only protecting investors but also laying a stronger foundation for sustainable growth and attracting both domestic and international capital into Nepal's burgeoning economy. These reforms are critical for the long-term health and credibility of the Nepalese stock exchange, ensuring that the primary market serves as a reliable conduit for capital formation and wealth creation.
National Kheer Day: A Cultural Festival Driving Significant Economic Activity in Nepal's Dairy Sector
Nepal recently celebrated 'Saun 15,' a day deeply embedded in the nation's cultural fabric, traditionally known as 'Kheer Khane Din' or 'Kheer Eating Day.' This annual observance, which falls in the middle of the monsoon season, serves as a joyous occasion for Nepalis across the country to unwind from the arduous farming activities of Ashar (mid-June to mid-July) and to replenish energy with a nutritious and wholesome dish: Kheer. Far from being merely a culinary tradition, Saun 15 has emerged as a significant economic driver, particularly for Nepal's burgeoning dairy sector, generating over NPR 1 billion in economic transactions in a single day. The cultural and religious significance of Saun 15 resonates from the high hills to the fertile plains of the Terai, and from remote villages to bustling urban centers. On this day, kitchens nationwide are filled with the comforting aroma of Kheer, a delectable rice pudding prepared with milk, rice, ghee, sugar, and an assortment of aromatic spices. This communal culinary experience not only fosters a sense of unity but also underscores the rich diversity of Nepali traditions, as various communities celebrate with their unique customs while sharing the common joy of Kheer. Farmers, in particular, mark the successful completion of rice planting by offering Kheer to deities before partaking in the festive meal themselves, a gesture of gratitude and hope for a bountiful harvest. The month of Shrawan, in which Saun 15 falls, is also sacred to Lord Shiva, leading many to distribute Kheer as 'Prasad' (blessed food) in temples, further intertwining the celebration with spiritual devotion. The economic ripple effect of Saun 15 is substantial and directly impacts the livelihoods of thousands. According to the Nepal Dairy Association, this year's Saun 15 witnessed an unprecedented surge in milk consumption across the country. The association estimated that approximately 10 million liters of milk were consumed nationwide on this single day, translating into an impressive economic turnover exceeding NPR 1 billion. This remarkable figure highlights the immense potential of cultural festivals to stimulate local economies and support vital industries. The increased demand for milk directly benefits rural livestock farmers, who form the backbone of Nepal's agricultural sector. For these farmers, Saun 15 provides a crucial boost in sales and income, offering much-needed relief and encouragement. Recognizing its multifaceted importance, the Government of Nepal officially declared Saun 15 as 'National Kheer Day' in 2077 BS (2020/21 AD). This governmental endorsement has further elevated the festival's profile, transforming it into a national celebration with a clear economic and cultural agenda. This year, the day was celebrated under the inspiring slogan, "Kheer cuisine, respect for farmers, pride of the dairy industry, identity of Nepali culture." This slogan encapsulates the holistic vision behind the observance, emphasizing the preservation of indigenous cuisine, honoring the hard work of farmers, promoting the self-reliance of the dairy industry, and reinforcing Nepal's unique cultural identity. The National Milk Development Board has also played a pivotal role, noting that such festivals are instrumental in promoting domestic dairy production and reducing reliance on imports. Beyond individual households, collective Kheer-feeding programs were organized in various schools, colleges, and offices in the capital, further amplifying the celebration and its economic impact. From a health perspective, medical experts also endorse the consumption of Kheer during the monsoon season. They note that the body's immune system can be compromised during this period, and warm Kheer, made from milk and rice, offers positive health benefits. Enriched with ingredients like walnuts, almonds, coconut, and raisins, Kheer provides essential energy and nutrients, contributing to overall well-being. In essence, Saun 15 is more than just a day for enjoying a traditional delicacy; it is a powerful testament to how cultural heritage can intertwine with economic prosperity. By preserving indigenous culinary practices, it revitalizes local markets, injects significant capital into the dairy industry, and provides tangible support to rural farming communities. This annual festival not only strengthens national unity and cultural identity but also makes a tangible and positive contribution to the broader national economy, showcasing the vibrant interplay between tradition and economic development in Nepal.
Nepal Market Update: Curfew in Siraha's Lahan Amidst Tensions, Sanima Bank Posts Improved Q4 Results
Nepal's economic landscape continues to present a mixed bag of regional challenges and corporate successes. In a significant development from the Eastern Terai, a curfew has been imposed in Siraha's Lahan market following escalating clashes linked to the Kaptanganj incident in Sunsari. This regional unrest casts a shadow over local commerce and daily life, while simultaneously, Sanima Bank Limited (SANIMA) has delivered a positive financial update, reporting improved performance in its fourth-quarter results for the last fiscal year. **Curfew in Lahan: A Response to Escalating Regional Tensions** The decision to impose a curfew in Lahan Municipality, Siraha, came into effect from Thursday afternoon at 4 PM, and will remain in force until further notice. This measure was necessitated by growing tensions and clashes stemming from the Kaptanganj incident in Sunsari, highlighting the fragile security situation in parts of Eastern Nepal. Siraha's Chief District Officer, Surendra Paudel, issued the curfew order, explicitly prohibiting all forms of movement, gatherings, demonstrations, assemblies, meetings, encirclements, and slogan chanting within the designated areas. The restricted zones in Lahan Municipality are extensive, encompassing the area from the East-West Highway eastward to Balan Khola, westward to Saraswati Khola (specifically west of Batika Hotel), and extending a 500-meter radius southward from the East-West Highway. Such stringent measures underscore the seriousness of the situation and the administration's commitment to restoring peace and order. The imposition of a curfew, especially in a bustling market area like Lahan, inevitably impacts local economic activities. Businesses face closures, daily wage earners suffer income losses, and the overall flow of goods and services is disrupted. For investors, regional instability of this nature can lead to dampened sentiment, particularly for companies with significant operations or customer bases in the affected areas. The broader context of recent unrest in Eastern Nepal, as reflected in other news reports, suggests a need for careful monitoring of the socio-political environment and its potential long-term economic implications. Ensuring stability and security is paramount for fostering a conducive environment for investment and economic growth. **Sanima Bank's Robust Q4 Performance Signals Financial Health** In contrast to the regional challenges, Sanima Bank Limited (SANIMA) has provided a reassuring update from the corporate sector. The bank recently unveiled its unaudited financial statement for the fourth quarter of the last fiscal year, indicating a commendable improvement across key financial metrics. According to the published details, Sanima Bank has successfully enhanced its main income, net profit, and dividend capacity when compared to the preceding fiscal year. This positive performance is a strong indicator of the bank's operational efficiency, strategic financial management, and resilience in a dynamic market. Improved main income typically suggests healthy growth in core banking activities, such as interest income from loans and advances, and fee-based services. A rise in net profit directly translates to increased profitability for shareholders and strengthens the bank's capital base. Furthermore, an enhanced dividend capacity signals the bank's ability to reward its investors, potentially through higher cash dividends or bonus shares, which can significantly boost investor confidence and market appeal. Sanima Bank has consistently been a notable player in Nepal's competitive banking sector, known for its prudent lending practices and customer-centric approach. The robust Q4 results not only reflect the bank's individual strength but also offer a glimpse into the broader health of the Nepali banking industry, which remains a cornerstone of the national economy. Such positive corporate earnings reports are crucial for maintaining investor optimism and attracting further capital into the stock market, even amidst regional uncertainties. The bank's ability to deliver improved performance underscores its strong fundamentals and strategic positioning for future growth. **Conclusion** The juxtaposition of regional unrest in Lahan and the strong financial performance of Sanima Bank highlights the multifaceted nature of Nepal's current economic and social landscape. While local administrations grapple with maintaining peace and order in conflict-prone areas, the corporate sector continues to drive growth and demonstrate resilience. For investors, these developments underscore the importance of diversified portfolios and a keen eye on both macro-level stability and micro-level corporate fundamentals when navigating the NEPSE market.
Indefinite Curfew Imposed in Parts of Dhanusha and Siraha Amid Security Concerns
The District Administration Offices (DAOs) of Dhanusha and Siraha have imposed curfew orders in selected areas of the two districts, citing concerns over the prevailing security situation and the need to maintain law and order. In Dhanusha, Chief District Officer Prem Prasad Luintel issued an order imposing an indefinite curfew in several sensitive areas of the district. The decision, taken during a meeting of the District Security Committee, came into effect from 3:30 pm today and will remain in force until further notice. Issued under Section 6 of the Local Administration Act, 2028, the order prohibits movement, public gatherings, processions, demonstrations, meetings, and sit-ins within the designated curfew zones. The administration has warned that anyone violating the order will face legal action under existing laws. According to the DAO, the curfew covers the area stretching from Lakshminiya Haatbazar Chowk in the north to Siurjoda Chowk in the west, from Laxmipur Novwa through a point 500 meters east of MU Steel on Belouni Road to the National Primary School in the east, from the Nagaraine Municipality area to Nagaraine Chowk in the south, and the Siurjoda–Sohni–Manimandap–Nepal Nursery–ISKCON–Janakpur–Dhalkebar Bridge–Bela–Kadari Mosque corridor in the west. The District Administration Office has appealed to the public to strictly comply with the curfew order, stating that the measure has been taken in view of the sensitive situation and to safeguard peace and public security. Meanwhile, the District Administration Office, Siraha has also imposed a curfew in parts of Golbazar Municipality, citing the possibility of a deterioration in the law and order situation. According to an order issued by Chief District Officer Surendra Paudel, the curfew was enforced under Section 6(a) of the Local Administration Act, 2028, following a decision by the District Security Committee in light of recent security concerns and the possibility of protests and disturbances. The curfew is in effect from 2:00 pm today until further notice. It covers the area from Kaharaha Khola in Ward No. 3 along the East-West Highway in the east to Chaurhawa Chowk in the west, and from Sainik Chowk in Ward No. 6 in the north to the vicinity of the Rajakiya Technical Multipurpose Campus in Ward No. 4 in the south. The Siraha administration has urged residents to cooperate by fully observing the curfew orders and warned that legal action will be taken against anyone found violating the restrictions. It also stated that security agencies have been placed on high alert, surveillance has been intensified in the affected areas, and residents have been advised to remain indoors except for essential purposes.
Sanima Bank Ltd.: A Fourteen - Year Financial Performance Review (Q4 2069/70 - Q4 2082/83)
Background of Sanima Bank Limited (SANIMA) Sanima Bank Ltd. (SANIMA) is one of the prominent commercial banks in Nepal. It was established in 2004 A.D. Sanima Bank is promoted by a group of prominent and dynamic Non-Resident Nepalese (NRNs) businesspersons. The bank initially commenced operations in 2004 as a National Level Development Bank. Since February 2012, Sanima Bank has been functioning as an "A" Class Commercial Bank with its registered office at 'Alakapuri', Naxal, Kathmandu. Sanima Bank will start its operations as the 32nd commercial bank of the country from Wednesday Feb 15, 2012 (Falgun 3, 2068 B.S.). Afterward, the bank is operating as one of the most competitive commercial bank. Currently, the bank is serving the nation thorough its 106 full-fledged branches and 28 extension counters spread from all 7 provinces across the country by employing 1,219 staff (As of Annual report 2081/82) nationwide. As of Q4 2082/83, banks total’s assets stood at Rs. 291.21 billion. At the same time, total equity stood at Rs 27.59 billion. How has SANIMA emerged over the period and role as a national level player in own class? Let’s look at its ups and downs on financial performance during this journey (Q4 2069/70 to Q4 2082/83) of 14 years. Balance Sheet Analysis Assets The overall asset size of SANIMA has increased by 13.25 times, from Rs. 21.97 billion to Rs. 291.21 billion. The proportion of Loans and Advances to Customers to Total Liabilities and Equity remained around the same level at 68.67% in the base year to 67.25% in Q4 2082/83. Below are the major asset indicators over the review period. 1. Cash and Cash Equivalents Cash and cash equivalents increased from Rs. 1.68 billion to Rs. 18.96 billion. Holding cash and cash equivalents above regulatory requirement is generally not considered efficient for banks. In this regard, SANIMA has an excess position due to higher liquidity in the market. 2. Loans and Advances to Customers The bank has remarkably expanded its core lending business. Loans and advances increased by 12.98 times, from Rs. 15.09 billion as of Q4 2069/70 to Rs. 195.88 billion by Q4 2082/83. Over the fourteen - year period, the bank achieved remarkable growth in business expansion. 3. Property and Equipment Property and Equipment initially stood at Rs. 46.94 crore and showed an increasing trend and reached Rs. 1.34 billion in Q4 2082/83. This category may also include certain non-banking properties. 4. Total Assets Total assets increased with higher growth during the initial years. Although the growth rate slowed in recent years, assets continued to grow steadily. Overall, SANIMA's asset base expanded by 13.25 times, increasing from Rs. 21.97 billion in Q4 2069/70 to Rs. 291.21 billion in Q4 2082/83. Liabilities Total liabilities (excluding equity) stood at Rs. 19.54 billion in Q4 2069/70. They increased by 13.49 times, reaching Rs. 263.62 billion by Q4 2082/83. Deposits from customers, the bank's core liability, grew at a median annual growth rate of 13.57%, increasing from Rs. 17.78 billion to Rs. 249.11 billion. Meanwhile, total liabilities and equity combined increased from Rs. 21.97 billion to Rs. 291.21 billion. The major liability trends are discussed below. 1. Deposits from Customers Deposits from customers increased at a median annual growth rate of 13.57%. Within total liabilities (excluding equity), deposits accounted for 91% of total liabilities in Q4 2069/70, increased to 95% by Q4 2082/83. This indicates that the bank remains highly dependent on customer deposits and may need to diversify its funding sources by utilizing other financial instruments. 2. Other Liabilities Other liabilities are steadily increasing throughout the review period. From Q4 2069/70 to Q4 2082/83, they increased by 14.10 times. This category reached its highest level in recent review period, which is in increasing trend. 3. Total Liabilities Total liabilities followed a pattern similar to customer deposits, recording a median annual growth rate of 16.73%. Since deposits constitute the largest portion of liabilities, total liabilities closely tracked deposit growth. 4. Equity Analysis Total equity of SANIMA increased at a median annual growth rate of 13.28%. During the same period, share capital grew at a median annual rate of 10%, while reserves increased at a median annual rate of 23.85%. Profit and Loss Analysis 1. Interest Income and Expenses Interest income and interest expense represent the bank's core revenue-generating activities and the cost of funding those assets, respectively. Interest income declined after reaching its peak of Rs. 21.61 billion in Q4 2079/80. Thereafter, both interest income and interest expense decreased steadily. By Q4 2082/83, interest income had fallen to Rs. 16.60 billion. During the declining interest rate environment, SANIMA’s net interest income continued to increase. Although the interest spread rate narrowed, the bank appeared to have successfully expanded its lending business. 2. Net Fees and Commission Income Another positive aspect of SANIMA is the steady growth in its net fees and commission income. SANIMA earned Rs. 1.49 billion in Q4 2082/83, representing a significant increasement of 63.99 times over review period. 3. Operating Profit and Net Profit Operating profit reflects the bank's profitability before taxation and provisioning, while distributable net profit represents earnings attributable to shareholders. SANIMA recorded its highest-ever net profit of Rs. 3.55 billion in Q4 2082/83. Overall, the bank has maintained a steady growth trend in net profits. Over the review period, the bank has achieved media growth rate of 30.27 percent in net profits. Expenses Interest expense remains the bank's largest expense and is considered the primary direct cost in the banking industry. This expense has shown a declining trend. However, persistently lower interest expenses may make it more challenging for the bank to retain depositors' funds. Other operating expenses have remained at a moderate level. Personnel expense of SANIMA is in increasing trend. Tax liability is directly related to profit. Rising profit increases tax liability of SANIMA. Trends in Key Performance Indicators Earnings Metrics Earnings Per Share (EPS) The bank's Earnings Per Share (EPS) has experienced considerable stable over the past ten fiscal years, reflecting bank’s strength to absorb external shock. The profitability remain relatively stable. EPS remained above Rs. 15 and in increasing trend from 2080/81. A sharp decline from Rs. 34.17 in 2072/73 to Rs. 18.85 in 2073/74 represents the higher decline in earnings performance during the review period. The bank recorded an stable recovery with EPS rising to Rs. 28.04 on 2075/76 from Rs. 18.85 in 2073/74, the trend fluctuating with lower spread in the series. As of Q4 2082/83, EPS reached Rs. 24.92. Q4 2082/83 closed with Distributable EPS of Rs. 20.85, indicating that profitability has stable compared to the last year, it is ascending to the peak achieved in 2082/83. Overall, the long - term trend suggests that the bank has successfully stabilizing profitability even in the various earnings shock. Efficiency Measures Return on Equity (RoE) RoE broadly mirrors the movement in EPS. The ratio declined sharply to 14.35% during Q4 2073/74 due to weak profitability. It rebounded to 18.85% in Q4 2075/76, afterward RoE is in declining trend this is because of equity stably increasing meanwhile profit is fluctuating and profit growth rate is not significant. FY2082/83 recorded 13.23%, reflecting improved earnings generation from shareholders' equity. Although current returns not a remarkable own previous level but can say the bank has restored a healthy profitability profile. Return on Assets (RoA) RoA followed a similar trajectory. It achieved highest RoA 2.06 on Q4 2075/76 deep the lowest at 0.98% on Q4 2081/82. The ratio recovered afterward, in Q4 2082/83 recorded 1.22%, the highest level in the last five years. This indicates the bank retaining good return on asset and efficiency in utilizing total assets to generate profits. Valuation Multiples Price-to-Earnings (P/E) Ratio The exceptionally high 31.17 times P/E in Q4 2070/71 was primarily driven market sentiment and stock price in ascending trends as well as SANIMA's earnings were also on an upward trend. This ratio should not be evaluated in isolation; it should be compared with industry peers. Over the last five years, the P/E ratio has fluctuated between 12 and 20 times, suggesting relatively stable market valuation. Price-to-Book (P/B) Ratio The P/B ratio remained close to 1.67 times in Q4 2079/80 lower in over review period. A marginaly increase to 1.86 times on Q4 2082/83. Since then, the ratio has stabilized below 3 times. Q4 2082/83 recorded 1.86 times, median pb ratio of SANIMA stay at 2.31 times. The ratio increased to 1.86 times in Q4 2082/83, both the share price and net worth have shown an increasing trend. Indicating the market continues to value the bank well above its book value, reflecting positive investor expectations. Health Indicators The Capital Fund to Risk-Weighted Assets Ratio never exceeded 16%. SANIMA's risk-weighted assets did not fluctuate significantly over the period indicating smoot and efficient assets management capacity on such assets. It stood at 13.1% in Q4 2082/83. The NPL ratio has shown a consistent upward trend over the review period. In last ten year, it increased from 0.01% in Q4 2073/74 to 2.87% in 2082/83, indicating gradual deterioration in loan quality. This ratio increased in recent years with higher rate, this is a matter of concern. The cost of funds declined significantly from the peak level 8.27% in Q4 2079/80 to 3.51% in Q4 2082/83, reflecting easing interest rates and lower deposit costs. Similarly, Base Rate declined from 10.15% to 4.91% just over the last four years. Interest Spread remained at lower side, SANIMA median spread rate 3.98% in study base year it was 4% to 3.39% the most recent review period, indicating compliance with NRB directives and increasing competition. This may put pressure on profit margins. Dividend History The bank's dividend history demonstrates that shareholder returns have closely followed its earnings performance. Dividend payouts weakened significantly during periods of lower profitability. Profitability may be affected by economic or policy shocks, business slowdown or higher NPL provisioning. SANIMA has distributed median total dividends of 14.15 percent. Another aspect of SANIMA didn’t leave shareholder hand empty based on the fourteen-year reviewed period. Data: The data for this article has been taken from SS Pro by ShareSansar.
NEPSE Grapples with Investor Confidence Amidst High Supply and Regional Tensions: An Expert's Market Outlook
The Nepal Stock Exchange (NEPSE) has been navigating a challenging period, marked by a palpable lack of investor confidence and persistent selling pressure. Despite intermittent attempts by market operators to drive prices higher, any modest gains of NPR 10-20 are swiftly met with a wave of sell orders, effectively stifling upward momentum. This struggle is compounded by various factors, including the ongoing unrest in Eastern Nepal, which some market participants believe is contributing to the subdued sentiment. Furthermore, stringent government policies and administrative actions have been cited as deterrents, overshadowing recent policy easements that might otherwise have bolstered market activity. In this complex environment, technical analyst Rajan Subedi offers a nuanced perspective on the market's current trajectory. Subedi highlights a significant "supply heavy" situation, where the sheer volume of shares available for sale outweighs demand. Technically, the market had shown signs of breaking a downtrend but failed to sustain momentum, notably failing to respect the 2560 order block based on the Smart Money Concept. Instead, it dipped further to 2545, a move Subedi describes as a "liquidity sweep." While the market did rebound from the crucial Fibonacci 0.5 to 0.618 "golden ratio" or optimal trade entry zone, it has since encountered strong rejection at higher levels, forming a "break-away gap." Subedi anticipates a potential correction, with the NEPSE index possibly retreating to the 2630 or 2610 levels. He attributes the operators' diminished confidence partly to increased scrutiny and actions from the new government and the Balen Shah administration, which has initiated investigations and crackdowns on market manipulation. Despite these headwinds, Subedi suggests that the market is unlikely to establish a new low, indicating a potential floor in the current correction. For individual investors, Subedi strongly advises against solely focusing on the NEPSE index. Instead, he recommends a meticulous examination of individual stock technicals and fundamentals. He points out that stocks showing volumetric activity in demand zones or undergoing prolonged accumulation phases are poised for upward movement. Citing examples like HPPL and NRN, where institutional investment and profit-boosting strategies yielded positive results, Subedi emphasizes the power of institutional demand. He suggests that investors should daily analyze the top 40 stocks by gain, turnover, and volume from the Nepal Stock Exchange website. Rather than diversifying across 30-40 stocks, which might not yield significant returns even if the market reaches 3200, Subedi advocates for tracking a select few (4-5) quality stocks where "smart money" is active. The focus, he asserts, should be on momentum-driven stocks rather than passively observing the broader index. Subedi also shares insights into his personal trading strategy, which primarily involves identifying areas where sell-side liquidity has been taken and observing bullish divergences in the Relative Strength Index (RSI). He places significant importance on the Fibonacci 0.786 level for entry and exit decisions. His approach is to enter positions when the market revisits "unmitigated order blocks" (areas where selling occurred but have not been retested) and to exit if targets are met or stop-loss levels are breached. Essentially, his strategy revolves around buying in demand zones and selling in supply zones. Regarding the activities of "smart money," Subedi reveals that institutional players are currently seeking opportunities to exit positions where they might be "trapped." He explains that smart money typically engages in "silent accumulation" and "loud distribution." A key indicator for retail investors to watch out for is when positive news about a particular stock becomes pervasive across various platforms; this often signals that the stock is in its distribution phase. Operators, he warns, frequently utilize charts and news to entice and trap retail investors. Therefore, he advises investors to analyze charts and volume patterns to discern whether a stock is in an accumulation, manipulation, mark-up, or distribution phase. Despite the prevailing challenges, Subedi believes that opportunities always exist for astute traders. Even during periods when the market index hovered between 1800 and 2200, sectors like hotels and finance witnessed rallies. The crucial skill, he notes, is the ability to shift focus to stocks exhibiting significant volumetric activity. Currently, he observes accumulation in the hydropower and some microfinance sectors, and he anticipates a potential "small rally" in the banking sector. However, he reiterates that the fundamental issue remains investor confidence. He urges the government to foster an environment conducive to investment and business, rather than intimidating investors and entrepreneurs. A major contributor to the current market supply, according to Subedi, is the influx of Initial Public Offerings (IPOs). Many investors who initially invest a modest NPR 5,000 tend to sell their shares as soon as their investment reaches NPR 50,000, often using the proceeds for consumer goods like mobile phones, rather than reinvesting in the secondary market. This trend prevents capital from recirculating within the market, disrupting the demand-supply balance. To address this, Subedi stresses the importance of educating investors about the "power of compounding." He also advocates for reputable companies to enter the market through "book building" processes and for regulatory bodies to prevent struggling companies from launching IPOs, which often end up burdening retail investors. Subedi identifies several common mistakes made by investors, with "overtrading" being the most significant. He advises patience, suggesting that if a favorable market setup isn't present, investors should be prepared to wait for up to six months. However, many investors, driven by the availability of funds, prematurely force setups, leading to undue stress. Another prevalent issue is greed, which prevents investors from booking profits on small gains (NPR 10-20) and a reluctance to implement stop-loss orders. He emphasizes that adherence to a well-defined system, strategy, and discipline is paramount to success. Investors should learn to filter out market "noise," especially rumors from social media groups, and instead rely on official media and their own technical analysis. Looking ahead, Subedi does not foresee an immediate breakthrough to the 3000 or 3200 levels, primarily due to the absence of strong accumulation. While discussions around intraday trading and short selling are positive developments for experienced traders, he cautions that these can be highly risky for uninformed retail investors. Therefore, he underscores the importance of continuous learning, viewing expenses incurred for education as an investment rather than a loss. His final advice is to avoid excessive optimism in the current market. For those who are currently "trapped" in positions, he suggests using any market rallies as opportune moments to exit. He concludes by reminding investors that market operators are often waiting for buyers, urging everyone to trade with utmost caution and awareness. Amidst this detailed market analysis, it is worth noting that Sanima Bank Limited (SANIMA) has recently published its unaudited financial statements for the fourth quarter of the last fiscal year. The report indicates an improvement in the bank's core income, net profit, and dividend capacity compared to the previous fiscal year, signaling a positive corporate performance in an otherwise challenging economic landscape.
Prime Minister Balen Shah Addresses Nation Amidst Eastern Unrest, Assures Impartial Investigation and National Unity
Prime Minister Balen Shah recently addressed the nation during a period of heightened sensitivity, following tragic incidents and subsequent unrest in various parts of the country, particularly in Sunsari's Dewanganj and Siraha. The Prime Minister conveyed the government's profound seriousness and sensitivity regarding these events, which have unfortunately claimed the lives of citizens Jayprakash Mehta, Omprakash Mehta, and Ganesh Yadav. On behalf of the Nepal government, he extended heartfelt condolences to the bereaved families and wished a swift recovery to all those injured, assuring that no effort would be spared in their treatment. In the wake of these unfortunate occurrences, security agencies were immediately mobilized to the affected areas, working tirelessly to normalize the situation, prevent further untoward incidents, and restore peace and order. Prime Minister Shah unequivocally stated the government's unwavering commitment to an impartial and transparent investigation into the incidents. To this end, the Ministry of Home Affairs has already constituted an investigation committee, tasked with thoroughly probing the events and ensuring that all individuals found responsible are brought to justice under the full extent of the law. This commitment underscores the government's dedication to upholding the rule of law and ensuring accountability, which is crucial for maintaining public trust and national stability. For an investor audience, the stability of the nation's social and political environment is a critical factor influencing market sentiment and investment decisions. While the recent unrest is localized, such incidents can cast a shadow over the broader economic outlook, potentially impacting investor confidence and the overall business climate. Prime Minister Shah's address, therefore, serves as a crucial reassurance that the government is actively working to mitigate these risks. A stable and harmonious society is the bedrock upon which a thriving economy is built, and the government's proactive measures to restore peace are vital for safeguarding Nepal's economic trajectory and attracting sustained investment. The government's strategy extends beyond immediate security responses. To prevent further escalation, protect lives and property, and foster an an environment of trust at the local level, the Nepal government has engaged in continuous efforts. These include convening an all-party meeting at the central level for in-depth discussions and maintaining ongoing dialogues with local representatives, civil society organizations, various religious leaders, community elders, and social figures. Furthermore, the Home Minister, accompanied by high-ranking security officials, has personally visited the incident sites to directly monitor the situation, engage with affected parties, and reinforce peace and security measures. The National Security Council has also convened to critically review the nation's overall security status and make necessary decisions in response to the prevailing circumstances, highlighting a comprehensive and coordinated governmental approach. Prime Minister Shah made a strong appeal to all citizens to refrain from spreading false, unverified information, rumors, hate speech, or expressions that could incite animosity between communities through social media or other platforms. He urged reliance solely on official facts and information issued by government bodies. Emphasizing the state's supreme and primary duty to protect every citizen's life and property, preserve social harmony, and maintain peace, the Prime Minister affirmed that the government would remain vigilant and sensitive. He reiterated that Nepal's constitution grants every citizen the fundamental right to practice their religion, culture, and traditions, a commitment the government fully upholds. He underscored that religion is a force that unites and spreads love, with compassion, kindness, love, and peace being the core essence of all faiths, not violence or division. The Prime Minister reminded the nation that Nepal's history stands testament to the fact that in the most challenging times, mutual unity, tolerance, and wisdom have always been its greatest strengths. He called upon all citizens to play a responsible role in dispelling the clouds of unrest hovering over the beautiful and peaceful Nepali sky. In a heartfelt appeal, he urged common citizens, civil society, religious communities, respected leaders, political parties, and responsible media outlets to exercise patience and restraint to maintain peace, harmony, brotherhood, and national unity. The government's steadfast resolve to ensure peace and security, coupled with a collective commitment to national unity, is paramount for navigating these challenges and ensuring a stable environment conducive to progress and prosperity for all Nepalis.
Sunsari Unrest Claims Second Life: Escalating Tensions Raise Concerns for Regional Stability
The eastern region of Nepal continues to grapple with a volatile security situation, as another life has been tragically lost following a violent clash between local residents and police in Dewanganj, Sunsari. Jayprakash Mehta, a 22-year-old resident of Dewanganj-3, succumbed to his injuries on Thursday afternoon while undergoing treatment at Neuro Hospital in Biratnagar. Mehta had sustained a gunshot wound during the confrontation that erupted last Sunday night. This unfortunate demise brings the total death toll from the incident to two, underscoring the severity of the unrest gripping parts of the Terai region. According to Deputy Superintendent of Police (DSP) Makendra Kumar Mishra, the Information Officer for Morang Police, doctors officially declared Mehta deceased at 1:24 PM. The clash, which took place on Sunday night, saw police resort to firing live ammunition in an attempt to bring the escalating violence under control. In addition to the two fatalities, eight other individuals who suffered gunshot wounds are currently receiving medical attention at various hospitals in Biratnagar, including Neuro Hospital, Birat Nursing Home, and Nobel Teaching Hospital. The incident also left more than 22 people injured, including several security personnel, highlighting the intense nature of the confrontation. This incident is not isolated, as the eastern and central Terai regions have recently witnessed a series of social and communal tensions, leading to curfews and disruptions in daily life. While the immediate cause of the Dewanganj clash remains under investigation, such events invariably cast a shadow over the region's economic prospects and overall stability. For investors, particularly those eyeing opportunities in infrastructure development, manufacturing, or local commerce, these recurring instances of unrest pose significant concerns. The unpredictable nature of these situations can lead to operational delays, supply chain disruptions, and a general erosion of investor confidence, making long-term planning challenging. The continuous cycle of protests, clashes, and subsequent curfews directly impacts local businesses, hindering trade, transportation, and daily economic activities. Small and medium enterprises, which form the backbone of local economies, are particularly vulnerable to such disruptions, often facing significant losses. Furthermore, the perception of instability can deter both domestic and foreign investment, which is crucial for job creation and sustainable economic growth in a developing nation like Nepal. The government and local authorities are under increasing pressure to not only investigate these incidents thoroughly but also to implement effective strategies for conflict resolution and maintaining social harmony. The police have confirmed that a comprehensive investigation into the Dewanganj incident is currently underway to ascertain the full sequence of events and hold those responsible accountable. However, beyond the immediate legal proceedings, there is an urgent need for broader societal dialogue and proactive measures to address the underlying causes of such unrest. Ensuring peace and stability is paramount for fostering an environment conducive to economic development and improving the quality of life for all citizens. The financial community, while observing these developments, will be keenly watching for signs of de-escalation and robust governance that can safeguard investments and ensure a predictable operating environment. The long-term economic prosperity of Nepal is intrinsically linked to its social cohesion and political stability, making incidents like the one in Sunsari a critical point of concern for all stakeholders.
Escalating Unrest in Siraha's Golbazar Claims Third Life Amidst Communal Tensions
A tragic incident unfolded in Golbazar, Siraha, on Thursday afternoon, as a young man lost his life due to a gunshot wound sustained during violent clashes and protests between two groups. The deceased has been identified as Ganesh Yadav, a resident of Golbazar-3. This unfortunate event marks a grim escalation in the ongoing social unrest plaguing parts of Eastern Nepal, bringing the total death toll from the broader regional incidents to three. The immediate aftermath of the incident saw heightened tensions, with protesters refusing to allow the retrieval of Yadav's body from the streets, using it as a focal point for their demonstration. Assistant Chief District Officer Chet Raj Baral confirmed the difficulty in managing the situation and retrieving the body amidst the ongoing protests. Furthermore, Ward Chairman Dhanprasad Lama reported that another individual was injured during the clashes and is currently receiving medical attention at a local clinic, underscoring the volatile nature of the confrontation. In response to the escalating violence, security measures in the Golbazar area have been significantly reinforced. High-ranking district security officials have promptly departed for the scene to assess the situation firsthand and implement necessary control measures. The police, however, have vehemently denied using live ammunition against the protesters. They assert that their efforts to control the agitated crowd involved only aerial firing and the deployment of tear gas, emphasizing their commitment to non-lethal methods while striving to restore law and order. This incident in Siraha's Golbazar is a stark reminder of the persistent communal tensions and social unrest that have gripped various parts of Eastern Nepal. Such prolonged instability not only poses a severe threat to human lives and public safety but also has profound implications for the region's economic health. Local commerce and daily life are severely disrupted, impacting livelihoods and creating an environment of uncertainty. For investors, such escalating violence and the inability to maintain peace can erode confidence, potentially deterring investment and hindering economic growth in an already fragile economic landscape. The broader NEPSE market has previously shown sensitivity to such regional disturbances, with investor sentiment often waning amidst reports of social unrest. As authorities work to de-escalate the situation and bring the perpetrators to justice, there is an urgent call for all parties to exercise restraint and engage in constructive dialogue. A peaceful resolution is paramount to prevent further loss of life, restore normalcy, and ensure the long-term stability and prosperity of the affected communities and the wider region.
Eastern Unrest Halts NEPSE Rally: Investor Confidence Wanes Amidst Communal Tensions
The Nepal Stock Exchange (NEPSE) has experienced an unexpected downturn, abruptly halting its recent upward trajectory, primarily due to escalating communal tensions in Eastern Nepal. What appeared to be a promising rally for the Nepali stock market has been overshadowed by socio-political unrest, leading to a noticeable decline in investor confidence and market activity. The unrest, which originated in Dewanganj, Sunsari, and subsequently spread to various parts of Koshi Province, has created a palpable psychological impact on the capital market. The initial enthusiasm among buyers, evident just a few days prior, has gradually dissipated, resulting in a continuous fall in the NEPSE index. This sentiment shift underscores the delicate balance between economic fundamentals and socio-political stability in influencing market dynamics. Sagar Dhakal, Chairman of the Stock Broker Association of Nepal, confirmed that the primary driver behind the market's recent decline is indeed this escalating tension. He emphasized that there are no other significant economic or policy-related factors currently exerting a negative influence on the market. "There is no other reason for the decline. The ongoing tension in the East is the main reason for the stock market's fall," Dhakal stated, highlighting the direct correlation between regional stability and market performance. Other market participants echo this sentiment, noting that the growing communal tension has significantly weakened investor morale. The clashes in Dewanganj, Sunsari, which began on July 26th, led to the imposition of a curfew. Subsequently, security alerts were heightened in Morang, Jhapa, and surrounding areas. As of Thursday, the situation in some parts of the East had not fully normalized, contributing to sustained selling pressure on NEPSE. This period of uncertainty has been directly reflected in the market's performance. Technical analysis further corroborates the psychological shift observed in the market. According to daily candlestick charts, NEPSE had recently shown a strong upward climb, rising from approximately 2550 points to the 2740-2750 point range. During this ascent, a series of green candlesticks were formed, accompanied by increasing trading volumes, clearly indicating strong buyer control and a bullish trend. However, following the emergence of the tension, the market's momentum abruptly reversed. The upward trajectory weakened, giving way to a succession of red candlesticks. What initially appeared to be a minor correction gradually transformed into persistent selling pressure. Over the past few trading days, the market has consistently closed at lower levels. In the last four trading days alone, the index has shed 62.02 points. On Thursday's trading session, NEPSE closed at 2672.58 points, down 16.30 points (0.61%). Despite reaching 2695.86 points during the day, the index failed to sustain this level, ultimately closing in the lower range, signaling strong selling pressure at higher price points. Another critical aspect observed in the charts is the trend in trading volume. While the market was rapidly climbing, trading volumes had increased significantly. Even as the market began to decline, volumes remained above average. Analysts interpret this as not merely profit-booking but also an increase in the number of investors selling shares to mitigate potential risks. Technically, the market appears to have exited its short-term upward trend. The continuous formation of small red candlesticks indicates that sellers are more active than buyers. The inability of the market to sustain any upward attempts and its subsequent retreat signal a weakening of investor confidence. In capital markets, psychological factors are often as crucial as economic indicators. Major political crises, natural disasters, or social instability often prompt investors to reduce their risk exposure, with direct consequences for the stock market. This psychological impact is particularly pronounced in markets like Nepal, which are dominated by individual investors. Following such events, many investors tend to halt new purchases, some secure profits, and others sell shares to avoid potential risks. This creates a situation where emotional responses often outweigh fundamental economic rationale. However, market experts advise long-term investors against making decisions based solely on immediate events. They suggest that once communal tensions are brought under control and normalcy returns, investor confidence is likely to improve again. In such a scenario, the current selling pressure in the market could subside. Conversely, if the tensions persist and begin to affect broader economic activities, their impact on the capital market could linger for an extended period. Currently, investors appear to be adopting a "wait and see" strategy rather than taking on new risks. The market's direction in the coming trading days will largely depend on the security situation in the East, the restoration of investor confidence, and the pace at which buyers return to the market. For now, both technical indicators and market behavior convey a clear message: the upward momentum has been halted, and investors remain in a cautious state of mind.
Former President Bidya Devi Bhandari Issues Urgent Call for National Unity and Stability Amidst Social Unrest
Kathmandu, Nepal – In a significant address reflecting deep concern over recent societal challenges, former President Bidya Devi Bhandari has issued a powerful appeal for national unity, social harmony, and maximum restraint from all citizens. Her statement, released on Thursday, comes in the wake of escalating community tensions and violent incidents reported across various parts of the country, most notably in Sunsari. This intervention from a former head of state underscores the gravity of the situation and the imperative for collective action to safeguard Nepal's foundational values. The former President expressed profound sorrow over the loss of lives resulting from the recent violence, extending her heartfelt condolences to the bereaved families and wishing a swift recovery to those injured. Her message was a stark reminder of the human cost of discord and the urgent need to prioritize peace. She specifically cautioned against the propagation of rumors and the dissemination of provocative statements, emphasizing their potential to further inflame an already sensitive environment. Such calls for responsible public discourse are crucial in an age where misinformation can rapidly destabilize communities. Highlighting Nepal's unique identity, Bhandari reiterated that the nation's strength lies in its rich tapestry of diverse ethnicities, languages, religions, and cultures. She passionately articulated that unity in diversity, mutual respect, and enduring social harmony are not merely ideals but the very bedrock upon which Nepal's progress and stability are built. This legacy, meticulously preserved and passed down through generations, represents a shared national treasure that, she stressed, must be protected at all costs and under no circumstances be compromised. For investors and businesses, a stable and harmonious society is a prerequisite for predictable operations and sustained growth, making such appeals for national cohesion directly relevant to the economic outlook. Furthermore, the former President called for robust accountability and transparency from state institutions. She urged the government, administrative authorities, and security agencies to conduct fair, impartial, and credible investigations into the recent incidents. Her emphasis on the rule of law, mutual trust, and continuous dialogue as the only pathways to achieving lasting solutions resonates deeply with principles of good governance that are vital for fostering both domestic and international confidence. She pressed for swift action to bring perpetrators to justice, ensure comprehensive support for victims, and diligently work towards restoring a sense of safety and trust within the affected regions. The stability and social cohesion of a nation are inextricably linked to its economic health and investment climate. Prolonged periods of unrest can deter foreign direct investment, disrupt supply chains, impact tourism, and erode consumer confidence, thereby hindering overall economic growth. Former President Bhandari's timely intervention serves as a critical reminder to all stakeholders – from political leaders to ordinary citizens – that maintaining peace and upholding the rule of law are collective responsibilities. A unified and stable Nepal is essential not just for social well-being but also for creating an environment conducive to sustainable economic development and prosperity for all its citizens. Her statement, therefore, transcends mere political commentary, offering a crucial perspective on the foundational elements required for Nepal's continued advancement on the global stage.
Sanima Bank Reports Robust Q4 Performance, Signaling Strong Financial Health and Investor Confidence
Sanima Bank Limited (SANIMA) has recently unveiled its unaudited financial statements for the fourth quarter of the last fiscal year, presenting a positive outlook for investors and stakeholders. The preliminary report indicates a commendable improvement across key financial metrics, including core income, net profit, and, significantly, its dividend distribution capacity when compared to the preceding fiscal year. This performance underscores the bank's resilience and strategic operational efficiency in a dynamic economic landscape. The publication of fourth-quarter results is a critical juncture for publicly traded companies, especially for financial institutions like Sanima Bank. These reports offer a comprehensive snapshot of a company's financial health, operational efficiency, and profitability over the entire fiscal year, providing essential data for investors to make informed decisions. For SANIMA, the reported improvements suggest effective asset management, prudent lending practices, and successful revenue generation strategies. A closer examination of the 'main income' improvement points towards a healthy growth in the bank's primary revenue streams. This typically includes a rise in net interest income, derived from the difference between interest earned on loans and investments and interest paid on deposits. It could also reflect an increase in non-interest income, which encompasses fees, commissions, and foreign exchange gains. Such diversified income growth is a strong indicator of a bank's ability to capitalize on various market opportunities and maintain a stable revenue base. Furthermore, the reported enhancement in 'net profit' is a direct reflection of the bank's operational efficiency and cost management capabilities. A higher net profit margin indicates that Sanima Bank has been effective in controlling its operating expenses while simultaneously growing its revenues. This efficiency is paramount for long-term sustainability and value creation for shareholders. Investors often view consistent growth in net profit as a sign of a well-managed institution capable of navigating competitive pressures and economic fluctuations. Perhaps one of the most encouraging aspects for investors is the improvement in 'dividend capacity.' This metric directly relates to the bank's ability to distribute profits to its shareholders, either through cash dividends or bonus shares. An enhanced dividend capacity often translates into higher potential returns for investors, making the stock more attractive. It also signals management's confidence in the bank's future earnings potential and its commitment to shareholder value. While these are unaudited figures, they set a positive precedent for the audited results and the subsequent dividend declaration. The broader context of Nepal's banking sector is also relevant. The sector has been navigating various challenges, including liquidity fluctuations and evolving regulatory frameworks. Against this backdrop, Sanima Bank's ability to demonstrate improved performance speaks volumes about its robust internal controls and adaptive business model. This positive trend could also be indicative of a broader recovery or stabilization within the financial services industry, potentially benefiting other players as well. Investors will now keenly await the audited financial statements and the board's recommendation for dividends, which will provide definitive figures and further insights into the bank's performance. The preliminary results from Sanima Bank Limited offer a promising outlook, reinforcing its position as a significant player in the Nepali financial market and potentially bolstering investor confidence in its future prospects. This strong finish to the fiscal year positions SANIMA favorably for continued growth and value creation in the upcoming periods.
CNI Expresses Grave Concern Over Eastern Nepal Tensions, Urges Social Harmony Amid Economic Fragility
The Confederation of Nepalese Industries (CNI), a leading voice for Nepal's private sector, has issued a strong statement expressing profound concern over the escalating tensions in Dewanganj, Sunsari, and other districts across Eastern Nepal. In a press release dated Thursday, Saun 14 (July 29), the CNI made an earnest appeal to all stakeholders to prioritize and uphold social harmony and religious tolerance, which are fundamental to the nation's stability and economic progress. Nepal has historically been a beacon of religious tolerance and mutual unity, a unique identity that the CNI emphasized must be preserved at all costs. The Confederation firmly believes that any form of problem, dissatisfaction, or dispute can only be resolved through constructive dialogue and peaceful negotiations, rather than through violence, confrontation, or destructive protests. This stance underscores the private sector's commitment to a stable and predictable environment conducive to business and investment. The CNI's concern is particularly acute given the current precarious state of the national economy. "The country's economy is already in a difficult situation. At a time when we need to create jobs and move the economy forward, such incidents disappoint everyone," the statement highlighted. The recent wave of unrest, characterized by incidents of vandalism, forced market and shop closures, and looting during protests, has severely impacted the industry and business sector, causing widespread anxiety among entrepreneurs and investors alike. Such disruptions lead to significant financial losses, damage to property, and a severe blow to consumer and investor confidence, which is crucial for economic recovery and growth. The economic ramifications of prolonged instability in key regions like Eastern Nepal are substantial. Businesses face supply chain disruptions, reduced sales, and increased operational costs due to security concerns and forced shutdowns. This directly hinders job creation and investment, which are vital for Nepal's post-pandemic economic revival. The CNI's statement implicitly warns that continued unrest could derail efforts to attract foreign direct investment and stimulate domestic economic activity, exacerbating existing challenges such as inflation, liquidity constraints, and slow growth. In response to these alarming developments, the CNI has formally urged the Government of Nepal and all relevant regulatory bodies to guarantee complete security for both general citizens and the business community. This demand reflects the private sector's expectation for a safe and secure environment where economic activities can thrive without fear of disruption. Furthermore, the Confederation has called upon its extensive network of provincial and district associations across the country, as well as other private sector organizations, to actively collaborate with social organizations in conducting harmony rallies and engaging in peace-building activities. This proactive approach by the CNI demonstrates its commitment not only to advocating for business interests but also to fostering a peaceful society essential for sustainable economic development. The CNI's appeal serves as a critical reminder that economic prosperity is inextricably linked to social cohesion and political stability. For investors, both domestic and international, a stable environment is a prerequisite for long-term commitments. The ongoing tensions, if not addressed promptly and peacefully, could deter potential investments and undermine the confidence required for robust economic growth. The Confederation's proactive stance and call for dialogue and peace initiatives are crucial steps towards mitigating the adverse economic impacts of social unrest and ensuring a conducive environment for Nepal's journey towards prosperity.
NEPSE Index Dips Moderately Amidst Fluctuating Trading Session; Turnover at Rs. 3.38 Billion
The Nepal Stock Exchange (NEPSE) concluded today's trading session with a moderate decline, as the benchmark index shed 16.29 points, or 0.60%, to close at 2,672.58. This downturn follows a loss of 7.79 points in the preceding session, signaling a persistent cautious sentiment among investors in the Nepali capital market. The consecutive dips suggest that market participants are navigating a period of uncertainty, prompting a closer look at underlying economic indicators and corporate performances. Throughout the day, the NEPSE index exhibited notable volatility. Opening at 2,661.13, the market oscillated between an intraday high of 2,695.86 and a low of 2,657.63 before settling at its closing value. Such fluctuations within a single trading day underscore the dynamic nature of the market, where investor sentiment can shift rapidly in response to various factors, including news, rumors, and technical trading signals. This intraday range highlights a battle between buyers attempting to capitalize on lower prices and sellers looking to book profits or cut losses. Total turnover for the day amounted to Rs. 3.38 billion (3.38 Arba), a figure that provides insight into the market's liquidity and investor participation. A total of 7,548,591 shares were traded across 337 companies through 44,651 transactions. While this turnover figure indicates active trading, its relative size compared to recent sessions can offer clues about the overall market enthusiasm. A moderate turnover on a declining day might suggest that selling pressure isn't overwhelmingly strong, or that institutional investors are holding back, awaiting clearer market direction. The total market capitalization stood at Rs. 4.593 trillion (45.93 Kharba), with a float market capitalization of Rs. 1.551 trillion (15.51 Kharba), reflecting the overall size and tradable value of listed companies. In terms of individual stock performance, Reliance Spinning Mills Limited (RSML) emerged as the leader in turnover, recording transactions worth an impressive Rs. 243.8 million (24.38 crores). The company's stock closed at Rs. 3,024.00. High turnover in a specific stock often indicates significant investor interest, which could be driven by company-specific news, strong financial results, or speculative trading activity. Investors will be keen to understand the catalysts behind RSML's prominent trading volume. On the gaining side, Everest Colour Limited (ECL) led the pack with a substantial 15.00% gain, closing at Rs. 1,138.60. Such a significant single-day surge often points to strong buying interest, possibly fueled by positive corporate announcements, strong earnings expectations, or sector-specific tailwinds. Conversely, Kalinchock Hydropower Limited (KHPL) experienced the steepest decline, falling by 14.99% to close at Rs. 902.00. Sharp declines in hydropower stocks can sometimes be attributed to project delays, regulatory concerns, or broader sector-wide corrections, prompting investors to re-evaluate their positions. Sectoral performance mirrored the overall market's cautious tone, with the HydroPower Index recording the highest fall of 1.20%. This sector has often been susceptible to policy changes, project execution risks, and environmental factors, making it prone to volatility. In contrast, the Finance Index demonstrated resilience, registering the least loss, down by a mere 0.13%. The relative stability of the finance sector often reflects its foundational role in the economy and potentially robust earnings reports, even amidst broader market corrections. Investors typically monitor these sectoral movements closely to identify potential opportunities or risks. Overall, today's trading session on NEPSE reflected a market grappling with moderate downward pressure and fluctuating sentiment. While specific stocks and sectors showed divergent performances, the general mood remained cautious. Investors will likely be watching for upcoming economic data, corporate earnings, and any policy announcements that could provide a clearer direction for the market in the coming days.
Nepal's Parliament Advances Crucial Financial Laws Amendment Bill, Paving Way for Economic Reforms
The House of Representatives in Nepal has taken a significant step towards modernizing the nation's financial regulatory framework by unanimously approving a proposal to send the 'Bill to Amend and Repeal Certain Nepal Laws Related to Finance, 2083' to a parliamentary committee for detailed review. This pivotal move, initiated by Finance Minister Dr. Swarnim Wagle, marks a crucial phase in the government's ongoing efforts to update and streamline the legal landscape governing Nepal's financial sector. The bill, which proposes both amendments and repeals of existing financial laws, is expected to address various contemporary challenges and opportunities within the Nepalese economy. In an era of rapid technological advancement, increasing global financial integration, and evolving market dynamics, outdated legislation can significantly hinder economic growth, deter foreign direct investment, and create operational inefficiencies across various sectors. By undertaking this comprehensive legislative review, the government aims to create a more robust, transparent, and investor-friendly environment. This anticipated overhaul is poised to touch upon critical areas such as banking regulations, capital market operations, insurance laws, and potentially even aspects related to foreign exchange management and the prevention of financial crimes, thereby aligning Nepal's financial architecture with international best practices. For investors, both domestic and international, the progression of this bill is a development that warrants close monitoring. A modernized and clearly defined legal framework can bring greater clarity, reduce regulatory ambiguities, and significantly enhance the ease of doing business in Nepal. This, in turn, could substantially boost investor confidence, potentially leading to increased capital inflows into key sectors like the Nepal Stock Exchange (NEPSE), the banking industry, and other non-banking financial institutions. Clearer rules of engagement, coupled with stronger enforcement mechanisms, are fundamental pillars for a thriving capital market, encouraging long-term investment horizons and fostering overall market stability. Finance Minister Dr. Swarnim Wagle's presentation of the proposal underscores the government's unwavering commitment to comprehensive financial sector reforms. Dr. Wagle has consistently advocated for policies that promote sustainable economic growth, attract both domestic and foreign investment, and ensure the long-term stability of the financial system. This bill is likely a cornerstone of his broader strategy to align Nepal's financial laws with international standards and to cultivate an ecosystem conducive to dynamic and sustainable economic development. The subsequent "clause-by-clause discussion" within the designated parliamentary committee is a vital part of the legislative process. It allows for in-depth scrutiny, expert consultation, and the incorporation of feedback from a wide array of stakeholders, including financial institutions, businesses, legal experts, and the general public. This meticulous review ensures that the final legislation is well-considered, comprehensive, and effective in achieving its intended objectives without creating unintended adverse consequences. The implications of these amendments could be far-reaching and transformative. They might lead to improved corporate governance standards across all financial entities, enhanced consumer protection measures, and a more efficient and equitable dispute resolution mechanism. Furthermore, by strategically repealing certain outdated laws, the bill could eliminate redundant or burdensome regulations that currently impede business operations, thereby fostering a more dynamic, competitive, and innovative financial landscape. As Nepal continues its journey towards greater economic prosperity and regional integration, a strong, adaptive, and forward-looking legal framework is indispensable for fostering innovation, facilitating broader access to finance, and ensuring the integrity and resilience of its financial system. During the parliamentary session, lawmakers also observed a moment of solemnity, passing a condolence motion to honor the memory of former Deputy Prime Minister and Constituent Assembly member Gopalman Shrestha following his passing. Following these proceedings, Speaker Dol Prasad Aryal announced that the House has been adjourned until its next meeting scheduled for Tuesday, Shrawan 19, at 1:00 PM. While these procedural aspects are part of routine parliamentary business, the primary focus for the financial community and investors remains firmly on the progress of the financial laws amendment bill, which holds the profound potential to reshape Nepal's economic future.
CG Motors Opens Multi-Brand EV Outlet in Bharatpur, Expanding Electric Mobility Network
CG Motors has launched a new multi-brand outlet in Bharatpur, Chitwan, bringing Riddara, Deepal, XPENG, and AION electric vehicles under one roof. The outlet offers vehicle display, test drives, financing support, and after-sales services, aiming to improve customer access to advanced EV solutions outside Kathmandu. Backed by a nationwide network of over 260 charging stations, the expansion strengthens CG Motors' commitment to promoting sustainable mobility and expanding its presence across Nepal. The inauguration was attended by local government officials, business leaders, banking representatives, and around 150 customers.
Curfew Imposed in Janakpur and Siraha's Golbazar Amidst Rising Tensions, Impacting Local Commerce
In a significant development impacting regional stability and local economic activity, authorities have imposed a curfew in the urban areas of Janakpur, Dhanusha, and surrounding regions of Golbazar in Siraha. The decision comes amidst escalating tensions between two communities, prompting swift action from local administrations to prevent further unrest and maintain law and order. The curfew in Janakpur, a prominent religious and cultural hub in Nepal, was enforced from 3:30 PM on Thursday, following a crucial meeting of the District Security Committee. This measure was deemed necessary after a thorough analysis of the prevailing security situation indicated a high potential for protests, riots, and a breakdown of peace. Similarly, the local administration in Siraha's Golbazar also issued a curfew order, citing similar concerns over public safety and the potential for widespread disruption. These proactive steps underscore the government's commitment to ensuring the safety of its citizens and preventing any escalation of social discord. While such measures are crucial for restoring peace, they inevitably bring immediate economic repercussions for the affected regions. Janakpur, known for its vibrant religious tourism and bustling markets, will experience a significant halt in commercial activities. Businesses, ranging from small street vendors to larger retail establishments and hotels, are forced to shut down, leading to substantial daily losses. The hospitality sector, which relies heavily on pilgrims and tourists visiting the Janaki Temple and other cultural sites, is particularly vulnerable to cancellations and a drastic reduction in footfall. This disruption not only impacts business owners but also severely affects daily wage earners who depend on the uninterrupted flow of economic activity for their livelihoods. Golbazar in Siraha, a key commercial center in the eastern Terai region, faces similar challenges. As a market hub, its closure disrupts local supply chains, affecting the movement of goods and services. Farmers and traders, who rely on daily market operations, will find their produce unsold and their income streams interrupted. The cumulative effect of these localized shutdowns can ripple through the regional economy, potentially leading to short-term price fluctuations and reduced consumer spending once the curfew is lifted. From an investor's perspective, even localized social unrest, while not directly impacting the Nepal Stock Exchange (NEPSE) in the short term, serves as a crucial indicator of the broader socio-political stability of the country. Investors, both domestic and international, closely monitor such events as they can influence the overall business environment and long-term investment climate. A stable and predictable environment is paramount for fostering investor confidence, attracting capital, and ensuring the smooth operation of businesses. Persistent or frequent instances of unrest, even if contained, can deter potential investments in regional development projects and local enterprises. The swift imposition of the curfew demonstrates the administration's resolve to manage crises effectively. However, the underlying causes of inter-community tensions require deeper engagement and long-term solutions to prevent recurrence. For Nepal's economy to achieve sustained growth and attract robust investment, maintaining social harmony and ensuring law and order across all regions is fundamental. The focus must remain on fostering an environment where businesses can thrive without the constant threat of disruption, thereby safeguarding the economic interests of the nation and its citizens.
Nepal Stock Exchange Continues Downtrend as Index and Turnover Decline for Third Consecutive Day
The Nepal Stock Exchange (NEPSE) witnessed another challenging trading session on Thursday, extending its losing streak for the third consecutive day. The benchmark index closed significantly lower, reflecting a prevailing bearish sentiment among investors. This persistent decline has raised concerns within the market, prompting a closer look at the factors influencing investor behavior and overall market dynamics. On Thursday, the NEPSE index shed a notable 16.29 points, settling at 2672.58. This downward movement was mirrored across other key indices as well. The Sensitive Index, which tracks the performance of 'A' class companies, decreased by 2.31 points. Similarly, the Float Index, representing freely tradable shares, dropped by 0.97 points, and the Sensitive Float Index saw a decline of 0.77 points. The broad-based nature of these declines indicates a widespread negative sentiment affecting various segments of the market. Accompanying the fall in the index was a noticeable contraction in trading volume. The total turnover for the day amounted to NPR 3.38 billion, a significant decrease from the NPR 4.02 billion recorded on Wednesday. This decline in liquidity suggests that investors are either holding back from making new investments or are engaging in cautious profit-booking activities. A total of 7.548 million shares from 337 stocks changed hands across 44,651 transactions, highlighting a reduction in overall market participation compared to previous sessions. Despite the broader market downturn, a few stocks managed to defy the trend. Everest Color Company notably continued its impressive run, trading at the positive circuit level for the ninth consecutive trading day. Its share price surged by NPR 148.50, closing at NPR 1,138.60, demonstrating strong investor confidence in the company. Conversely, Kalinchok Hydropower faced the steepest decline, with its share price plummeting by 14.99%. Corporate Development Bank also experienced a significant drop, losing over 12.5% of its value, indicating specific pressures on these individual stocks. In terms of trading activity, Reliance Spinning Mills emerged as the top performer by turnover, recording transactions worth NPR 243.8 million. Corporate Development Bank, despite its share price decline, saw substantial trading volume with approximately NPR 155 million worth of shares changing hands. Ridi Power Company also attracted considerable investor interest, with its turnover exceeding NPR 105 million. These figures suggest concentrated trading in certain scrips even amidst a general market slowdown. A comprehensive review of the sectoral performance revealed a universal decline, with all 13 sub-indices closing in the red. The Hydropower sector was hit hardest, experiencing the largest drop of 1.20%. The Development Bank sub-index also suffered a significant setback, falling by more than 1%. Other sub-indices recorded declines of less than 1%, but the widespread nature of the downturn across all sectors underscores the pervasive bearish mood currently gripping the NEPSE market. This broad-based weakness suggests that the current market correction is not confined to specific industries but is rather a systemic response to broader economic or sentiment-driven factors. Investors are advised to closely monitor these trends and consider their investment strategies in light of the ongoing market volatility.
Infinix Nepal Launches 0% EMI Offer on Selected Smartphones
Infinix Nepal has launched a "Big Phones, Small Payments" initiative, offering select smartphones on a 0% interest EMI scheme in partnership with Goodwill Finance Limited. Under the offer, customers can buy select Infinix phones by paying 40% upfront and the rest over a 12-month EMI plan with no interes Under the offer, customers can buy eligible Infinix smartphones by paying a 40% down payment, with the remaining amount payable over 12 months at 0% interest. The scheme covers selected models from the HOT 70, NOTE Series, and GT 30 Pro lineup. According to the company, the initiative is aimed at making premium smartphone technology more affordable by enabling customers to upgrade through manageable monthly instalments instead of paying the full price upfront. The 0% EMI offer is available at authorised Infinix retail stores and participating outlets across Nepal.