Tag: market

  • NEPSE Index Drops by 2.06% Amidst New Tax Reforms and Investor Concerns

    NEPSE Index Drops by 2.06% Amidst New Tax Reforms and Investor Concerns


    The NEPSE index experienced a decline today, closing at 1,849.79, which marked a decrease of 38.83 points compared to the previous trading day. This equated to a loss of 2.06% in the index value. Over the course of the week, the index has witnessed a decrease of approximately 109.37 points since Sunday.

    During the week, the Finance Minister, Dr. Prakash Sharan Mahat, presented the budget for the upcoming financial year, which included several new tax reforms. However, the introduction of these reforms caused some confusion and misinterpretation regarding the restructuring of the existing taxation system in the share market. As a result, panic selling occurred, leading to a decline in the market. Within just two days (Sunday and Tuesday), the market plummeted by 91.99 points.

    One of the concerns raised by investors pertained to the treatment of losses incurred during stock market transactions. In response, the Director General of the Inland Revenue Department (IRD), Dirgha Raj Mainali, addressed this issue by announcing a new provision. This provision allows investors to carry forward losses for up to seven years and offers additional tax rebates after adjusting profit or loss for taxpayers. This measure is seen as a positive step to alleviate market concerns and promote investor confidence.

    The new tax provisions announced by the Finance Minister include bringing FPO premiums and gains from mergers and acquisitions under the scope of taxation. However, certain sectors such as banking and financial institutions, hydro companies, and insurance companies have consistently maintained their position that such gains should be treated as investments rather than taxable profits.

    The market’s decline can be attributed to the uncertainties and apprehensions arising from the new tax reforms. It is important for investors to understand and interpret the provisions accurately to avoid any unnecessary panic selling or volatility in the market. The IRD’s efforts to address investor concerns and provide favorable provisions, such as carrying forward losses and tax rebates, aim to mitigate the impact of the reforms and maintain stability in the market.

  • Kumari Bank Limited Initiates Auction of Promoter Shares to General Public

    Kumari Bank Limited Initiates Auction of Promoter Shares to General Public


    The promoters of Kumari Bank Limited (KBL) have decided to sell 7,57,699 units of their shares through an auction. This auction is open to individual investors, companies, and institutions, and will take place from 16th Jestha to 22nd Jestha, 2080.

    Interested bidders can participate in the auction with a minimum bid rate of Rs. 121 per share. The minimum bid quantity for the promoter shares is set at 1000 units. Bidders can place bids for the entire share issue, but they must adhere to the Nepal Rastra Bank’s guidelines regarding the maximum quantity of shares that can be held by a single entity.

    NIBL Ace Capital Limited has been appointed as the auction manager for this process. Bids will be opened at the auction manager’s premises on 23rd Jestha, 2080.

    At present, the Last Traded Price (LTP) of KBL shares stands at Rs. 168.

  • Nepal’s Budget 2023-24 (2080/81) : Key Highlights and Allocations

    Nepal’s Budget 2023-24 (2080/81) : Key Highlights and Allocations


    Finance Minister Prakash Sharan Mahat has unveiled the budget estimates for Nepal’s fiscal year 2023-24, outlining significant allocations and priorities across sectors. This article provides a comprehensive overview of the budget, highlighting key sectors such as agriculture, education, infrastructure, and social welfare. Read on to discover the key highlights of Nepal’s budget for the upcoming year.

    Agriculture and Livestock Development:

    The Ministry of Agriculture and Livestock Development has received a budget allocation of Rs58.98 billion, reflecting a notable increase of Rs3.01 billion compared to the previous fiscal year. Emphasizing the importance of local production, the government has allocated Rs30 billion for subsidizing chemical fertilizers to farmers.

    Information Technology and Foreign Investment:

    In a bid to attract foreign investment, the government has eliminated the limit on foreign investment in the information technology industry. Minister Mahat announced plans to create a favorable environment for foreign investment in this sector, fostering growth and innovation.

    Education and Infrastructure:

    The budget for the Ministry of Education, Science, and Technology has been increased to Rs197 billion, demonstrating the government’s commitment to enhancing the education sector. Additionally, the government plans to construct one model residential community school in Dhankuta, Bardibas, Tansen, Surkhet, and Dadeldhura, adopting the successful operational modality of renowned schools in Kathmandu and Pokhara.

    Infrastructure Development and Sports:

    The Local Infrastructure Development Partnership Programme, also known as the Constituency Development Fund, has been allocated a budget of Rs8.25 billion. Moreover, the government has announced plans to develop the Tribhuvan University Cricket Ground into an international-level cricket facility. Furthermore, four additional stadiums will be constructed in different regions of the country.

    Social Welfare and Health:

    The government intends to continue the midday meal program in public schools, ensuring nutritious meals for students while eliminating junk food options. The budget includes Rs8.45 billion for midday meals, benefiting approximately 3.2 million students. Additionally, Rs1.42 billion has been allocated for providing free sanitary pads to girl students.

    The Ministry of Health and Population has received a significant budget increase of Rs14 billion, with a total allocation of Rs83.99 billion for the fiscal year 2023-24. This increased funding aims to improve healthcare services and meet the growing demands of the population.

    Nepal’s budget for the fiscal year 2023-24 emphasizes key sectors such as agriculture, education, infrastructure, and social welfare. The government’s focus on promoting local production, attracting foreign investment, and enhancing educational opportunities showcases its commitment to overall development. With increased allocations in vital sectors, Nepal aims to address societal needs, drive economic growth, and uplift the quality of life for its citizens.

  • Kumari Bank Limited Promoters to Auction 14,83,378 Units of Shares to General Public

    Kumari Bank Limited Promoters to Auction 14,83,378 Units of Shares to General Public


    Kumari Bank Limited (KBL) has announced that its existing promoters will be selling 14,83,378 units of their shares through an auction open to the general public. The auction period will be from 12th Jestha to 19th Jestha, 2080. This presents an opportunity for individual investors, companies, and institutions to participate in the auction and potentially acquire shares of KBL.

    To participate in the auction, interested bidders need to place their bids with a minimum bid rate of Rs. 110. It’s important to note that the minimum bid quantity for the promoters’ shares is set at 1000 units. While bidders have the option to bid for the entire issue, they must comply with the regulations of the Nepal Rastra Bank, which specify the maximum quantity of shares that can be allocated to a single entity.

    The auction process will be managed by Sunrise Capital Limited, a renowned institution in the field. At the time of writing, the Last Traded Price (LTP) of KBL stands at Rs. 169.20. This information provides potential investors with a reference point to consider while placing their bids.

    Participating in this auction allows interested investors to potentially become shareholders of Kumari Bank Limited and be part of its future growth and profitability. It is advisable for prospective bidders to carefully assess their investment strategy and make informed decisions based on their own financial goals and risk appetite.

  • Ajod Insurance Limited Converts Promoter Shares to Public Shares, Achieving 51:49 Ownership Ratio

    Ajod Insurance Limited Converts Promoter Shares to Public Shares, Achieving 51:49 Ownership Ratio


    Ajod Insurance Limited (AIL) has recently converted 19,00,000 units of promoter shares into public shares, resulting in a change in the company’s shareholding structure. Previously, the company had 70% of its shares held by promoters and 30% held by the public. However, with this conversion, the promoter-to-public shares ratio has shifted to 51:49.

    AIL, which currently has 1 crore unit shares listed on the Nepal Stock Exchange (NEPSE), has made this strategic move to increase the public’s ownership in the company. By converting a portion of the promoter shares, AIL aims to promote wider shareholder participation and enhance the overall transparency and governance of the company.

    As of the last trading day, AIL’s Last Traded Price (LTP) stood at Rs. 468. This price reflects the market value of AIL’s shares at that particular time. With the conversion of promoter shares into public shares, the market dynamics and investor sentiment surrounding AIL may be influenced. The shift to a 51% promoter and 49% public shareholding structure could potentially have an impact on the trading behavior and valuation of the company’s shares.

    This conversion signifies AIL’s commitment to a more balanced and inclusive ownership structure, where the public shareholders have a significant stake in the company’s future growth and profitability. It also highlights the company’s efforts to align with regulatory requirements and promote fair market practices in the insurance industry.

  • Chhyangdi Hydropower Appoints BoK Capital Market as Issue Manager for Right Share Issuance

    Chhyangdi Hydropower Appoints BoK Capital Market as Issue Manager for Right Share Issuance


    Chhyangdi Hydropower has chosen BoK Capital Market as the issue manager for its upcoming issuance of right shares. The company plans to offer existing shareholders the opportunity to purchase additional shares in a 1:1 ratio, totaling approximately Rs 38.69 crore. This move aims to strengthen shareholder ownership and support the company’s growth in the hydropower sector.

  • Gold Price Surges by Rs. 600 in Domestic Market, Silver Declines by Rs. 5 per Tola

    Gold Price Surges by Rs. 600 in Domestic Market, Silver Declines by Rs. 5 per Tola


    Gold prices in the domestic market have experienced a significant surge today, increasing by Rs. 600. Fine gold is currently being traded at Rs. 109,800 per tola, marking an increase from yesterday’s rate of Rs. 109,200 per tola. Similarly, Tejabi gold is being traded at Rs. 109,300 today, compared to yesterday’s rate of Rs. 108,700 per tola.

    In contrast, silver prices have witnessed a decline of Rs. 5 per tola. The current trading rate for silver stands at Rs. 1,360 per tola, whereas it was valued at Rs. 1,365 per tola yesterday.

    Internationally, the price of gold has reached USD $1,977.00 per ounce, while silver is being traded at $23.41 per ounce.

    These fluctuations in gold and silver prices reflect the dynamics of the precious metals market, influenced by factors such as global demand, economic conditions, and investor sentiment.

  • Shubha Laxmi Kosh NAV Report: Fund Size at Rs. 28.14 Crores, Records Net Loss in Baisakh

    Shubha Laxmi Kosh NAV Report: Fund Size at Rs. 28.14 Crores, Records Net Loss in Baisakh


    The latest NAV report for “Shubha Laxmi Kosh,” an open-ended fund, has been released. As of the month of Baisakh, the fund size stands at Rs. 28.14 crores.

    The NAV for Baisakh is recorded at Rs. 9.26. Shubha Laxmi Kosh has invested Rs. 17.22 crores in listed shares and an amount of Rs. 488,276.89 in public issues, right shares, and bonus shares. Additionally, the fund has allocated Rs. 1.44 crores towards bonds/debentures, while the bank balance stands at Rs. 3.84 crores.

    The fund has reported a net loss of Rs. 2.08 crores in the month of Baisakh, compared to a net loss of Rs. 93.09 lakhs in the previous month. These figures provide an overview of the fund’s performance during the specified period, offering insights into the investments made and the financial outcome.

  • Kumari Bank Limited Initiates Auction of Promoter Shares to General Public

    Kumari Bank Limited Initiates Auction of Promoter Shares to General Public


    Kumari Bank Limited (KBL) is conducting an auction for the sale of 316,140 units of promoter shares to the general public. The auction, which began on 8th Jestha and will continue until 10th Ashad, 2080, allows individual investors, companies, and institutions to participate. The minimum bid rate for the auction is set at Rs. 110, and the minimum bid quantity for promoter shares is 1000 units.

    While bidders have the option to bid for the entire quantity of shares, they must comply with the Nepal Rastra Bank’s regulations, which limit the maximum number of shares that can be held by a single entity. The auction is managed by B.O.K Capital Markets Limited, and the latest trading price (LTP) for KBL stands at Rs. 165.50 as of the time of writing.

  • Himalayan Power Partner Limited Reports Net Loss of Rs. 10.43 Crores in Q3 FY 2079/80

    Himalayan Power Partner Limited Reports Net Loss of Rs. 10.43 Crores in Q3 FY 2079/80


    Himalayan Power Partner Limited (HPPL) has released its third-quarter report for the ongoing fiscal year, revealing a Net Loss of Rs. 10.43 crores. In contrast, during the same quarter of the previous fiscal year, the company had recorded earnings of Rs. 1.70 crores.

    HPPL reported a revenue of Rs. 26.33 crores from the sale of electricity up to the third quarter of FY 2079/80. However, the company incurred costs of Rs. 1.81 crores for sales, Rs. 34.10 lakhs for administrative expenses, and Rs. 54.16 lakhs for employee costs.

    One significant factor impacting the company’s profitability is the financial cost, which amounted to a loss of Rs. 24.86 crores during the first three quarters of the current fiscal year.

    HPPL has a paid-up capital of Rs. 1.06 Arba and has retained earnings of Rs. 11.47 crores. The Earnings per Share (EPS) ratio stands at a negative Rs. – 9.79, while the Net Worth per Share is Rs. 110.77.

    At the end of the third quarter of FY 79/80, the closing price of HPPL’s shares was Rs. 297.

    The completion of the Dordi Khola Hydroelectricity project in Lamjung, with a capacity of 27 MW, has contributed to an increase of 1.53% in current assets and a significant rise of 181.33% in current liabilities compared to the corresponding quarter of the previous fiscal year.

    According to the company’s management analysis, following the successful completion of the project, HPPL is exploring potential investments in other projects to further expand its operations.

  • Nepal’s Trade Deficit Stands at Rs. 12.04 Kharba for First Ten Months of Fiscal Year

    Nepal’s Trade Deficit Stands at Rs. 12.04 Kharba for First Ten Months of Fiscal Year


    Nepal’s trade deficit for the first ten months of the current fiscal year has remained at Rs. 12.04 Kharba, according to the recently released Nepal Trade Statistics by the Department of Customs. This represents a decrease of 15.85% compared to the trade gap of Rs. 14.31 Kharba during the same period in the previous fiscal year. Both imports and exports have also witnessed a decline of 16.78% and 24.49% respectively when compared to the corresponding period of FY 2078/79.

    During the first ten months of FY 2079/80, Nepal’s imports amounted to Rs. 13.35 Kharba, with petroleum products being the top imported commodity, followed by crude soya bean oil and crude palm oil. On the other hand, the country’s exports reached Rs. 1.3 Kharba, experiencing a significant drop compared to the previous year’s figures.

    It is noteworthy that Nepal’s trade deficit has narrowed in the review period, indicating some improvement in the overall trade balance. However, the decline in both import and export values suggests challenges in the external trade sector, which require attention and strategic measures to promote trade growth.

    Please note that the provided data is based on the first ten months (Shrawan-Baishakh) of FY 2079/80, which corresponds to the period from mid-July 2022 to mid-May 2023.

  • Gold Prices Skyrocket by Rs. 800 in Domestic Market

    Gold Prices Skyrocket by Rs. 800 in Domestic Market


    The price of gold has experienced a significant increase of Rs. 800 in the domestic market today. As reported by the Federation of Nepal Gold and Silver Dealers’ Association, the current trading rate for fine gold stands at Rs. 110,000 per tola, compared to yesterday’s rate of Rs. 109,200 per tola. Similarly, Tejabi gold is being traded at Rs. 109,500 today, whereas it was priced at Rs. 108,700 per tola yesterday.

    In addition, silver has also seen a price surge of Rs. 15 per tola. The current trading rate for silver in the local market is Rs. 1,385 per tola, up from yesterday’s closing rate of Rs. 1,370 per tola.

    In the international market, the price of gold is currently at USD $1,977.60 per ounce, while silver is being traded at $23.83 per ounce.