Drop in the price of gold in the international market also dragged down the price of precious metal in the domestic market, while Nepal’s sole stock market continued to slow down amid sliding investors’ confidence.
CURRENCY
Partially convertible Nepali rupee appreciated by 60 paisa vis-à-vis US dollar over the week and closed at Rs 80.25 per dollar on Friday as Indian rupee with which Nepali currency is pegged strengthened marginally against the greenback.
Nepal Rastra Bank, country’s monetary authority, had fixed the exchange rate of a US dollar at Rs 80.85 on Sunday. However, Nepali currency continued to gain over the next four days. On Wednesday, the exchange rate was Rs 80.45 for a dollar. On Thursday, however, rupee depreciated, but it strengthened again on Friday to close at Rs 80.25 per dollar.
Nepali rupee also gained 51 paisa against the euro over the week and was closed at Rs 106.86 on Friday. But it depreciated by 76 paisa vis-à-vis pound sterling over the week and closed at Rs 118.37 on Friday. As per the existing open market exchange rate policy, rates quoted by different banks, however, may differ.
BULLION
Gold price dropped by Rs 56 per gram over the week and closed at Rs 23,275 per 10 grams on Friday in the domestic market, as the US$ 1.1 trillion economic stimulus package unveiled at the G20 meeting dragged the international price of gold downwards.
According to Nepal Gold and Silver Dealers’ Association, gold was traded at Rs 23,835 on Sunday. It dropped sharply over the next two days and was traded at Rs 23,190 per 10 grams on Tuesday. On Wednesday, it gained about Rs 300 per 10 grams, but prices spiraled downward for the remaining days of the week.
Likewise, the price of silver also dropped by Rs 6 per 10 grams over the week and was traded at Rs 350 per 10 grams. As Nepal fulfills its bullion demand through imports, any fluctuation in gold and silver prices in the international market directly impact the prices in the domestic market.
STOCK MARKET
Nepal Stock Exchange (NEPSE) lost 4.37 points over the week and its index closed at 660.36 points on Thursday, as investors’ continue to show their back to the country’s sole secondary market.
Weekly report of NEPSE shows that a total of 264,300 units of shares of 102 companies were traded on its floor. The turnover for the week totaled Rs 188.68 million, down from 267.22 million in the last week. Of the total transactions, turnover of category ‘A’ companies alone valued at Rs 119 million, which was 63.07 percent of the total turnover this week.
Performance record of different groups registered at NEPSE further shows that the index for commercial banks dropped by 3.32 points over the week, along with the indices for development banks, finances, insurance, manufacturing and other groups. Hotels and hydropower groups witnessed their indices going up, while the index of trading groups remained unchanged at 214.08 points throughout the week.
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