March 18, 2024

DAILY NEWSLETTER FROM NIMB ACE CAPITAL LTD.

Upcoming Projects

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Sub-Indices Movement
Hotels and Tourism Index, Hydropower Index and Others
Index went down by 1.56%, 1.16% and 1.06% respectively.
SAPDBL, GLBSL, MLBS, SMFBS and GRDBL were the top
gainers. WNLB, KLBSL, UNHPL, SFMF and DOLTI were
the top losers.

MARKET OVEVIEW
The benchmark index NEPSE decreased by 10.62 points (i.e.
0.51%) to close at 2,070.25 points at the end of the day. NEPSE
Index opened at 2,082.41 points and remained volatile during
the trading hour. The Sensitive Index went down by 1.55 points
and Float Index went down by 0.70 points. The total turnover
of the day stood at Rs. 3.38 Arba with more than 84 lakhs units
of shares were traded through 63,009 transactions.
Turnover
SHIVM had the highest turnover of the day followed by SONA
with their respective turnover of Rs. 41.64 crores and Rs. 23.07
crores respectively.
 Announcement:

1. The existing promoter of Sanima Bank Limited is selling 3,00,000 shares to its promoter shareholders.
2. Janautthan Samudayic Laghubitta Bittiya Sanstha Limited has announced its 13th AGM going to be held on 30th Chaitra, 2080.
3. The existing promoter of Kumari Bank Limited is selling 3,587 shares to the general public.
4. The existing promoter of Kumari Bank Limited is selling 1,58,363 shares to its promoter shareholders.
5. The existing promoter of Narayani Development Bank Limited is selling 50,042 shares to its promoter shareholders.
6. NIC Asia Bank Limited is selling 75,305 units promoter shares of Suryodaya Womi Laghubitta Bittiya Sanstha Limited in an auc-
tion to the qualified interested promoter shareholders/general public/company/institutions from 4th Chaitra to 13th Chaitra,
2080.
Financial News

Domestic News

Promoter Shares of Nepal Infrastructure Bank And Narayani Development Bank In Auction From 17th March

The existing promoter of Nepal Infrastructure Bank Limited (NIFRA) is auctioning 6,00,000 units of shares to the interested
promoter shareholders from 17th March. Bhod Prasad Tripathi intends to sell 6,00,000 units of promoter shares to the existing
promoter shareholders. Interested individuals are requested to bid for the auction within 35 days from the date of publication of this
notice, i.e. 4th Chaitra. The shareholders should submit their bids at the central office of the company located at Baneshwor,
Kathmandu. If no bids are received from existing founder shareholders within the specified timeframe, the shares will later be open
for auction to the general public. NIFRA closed at Rs. 212.50.Similarly, The existing promoter of Narayani Development Bank
Limited (NABBC) is auctioning 50,042 units of shares to the interested promoter shareholders from 17th March. 50,042 units of
promoter shares are being auctioned to the existing promoter shareholders. Interested individuals are requested to bid for the
auction within 35 days from the date of publication of this notice, i.e. 4th Chaitra. The shareholders should submit their bids at the
central office of the company located at Ratnanagar, Tandi, Chitwan. If no bids are received from existing founder shareholders
within the specified timeframe, the shares will later be open for auction to the general public.

Government Revenue Collection Surpasses Previous Year by 7.13%, Falls Short of Revised Estimates

The government has collected Rs. 6.61 Kharba in revenue in the first 8 months of the current fiscal year, which marks an increase
compared to the same period last year when revenue collection stood at Rs. 6.17 Kharba. With the conclusion of the first 8 months
of the current fiscal year, the government has achieved a revenue collection 7.13% higher than the previous year, reaching Rs. 5.78
Kharba from taxes and Rs. 60.37 Arba from non-tax revenue, along with other receipts. Despite the uptick in revenue collection, the
government's expenditures for the initial 8 months of the current fiscal year amounted to Rs. 8.01 Kharba, marking a significant
increase of Rs. 22 Arba compared to the corresponding period last year when expenditures totaled Rs. 7.79 Arba. According to the
data from the Office of the Auditor General, the government has allocated Rs. 5.82 Kharba for current expenditure, Rs. 1.38 Kharba
for financial management, and Rs. 81.21 Arba for capital expenditure until the month of Falgun. For the current fiscal year, the
government had initially set a budget of Rs. 17.51 Kharba, allocating Rs. 11.41 Arba for current expenditure, Rs. 3.02 Kharba for
capital expenditure, and Rs. 3.07 Kharba for financial management. However, the Ministry of Finance has publicized a revised
estimate indicating that only Rs. 15.30 Kharba will be spent. Considering the expenditure until Falgun, it appears that the
government might not achieve its revenue collection targets as per the revised estimates. The Ministry of Finance estimates that
revenue collection will only reach Rs. 12.2 Kharba, falling short of the target set of Rs. 14.22 Kharba. To achieve the revised revenue
target, the government needs to collect Rs. 5.41 Kharba in the next 4 months, whereas last year, revenue collection from Chaitra to
Ashad amounted to Rs. 3.93 Kharba. Meeting the revised revenue target will require a 38% increase compared to the previous year's
collection during the same period.

Gold Prices Fall By Rs. 400, Silver Witnesses Rs. 15 Increase

The price of fine gold has undergone a decrease of Rs. 400 per tola. According to the latest update provided by the Federation of
Nepal Gold and Silver Dealers' Association (FENEGOSIDA), the current trading price for pure gold stands at Rs. 1,25,000 per tola,
indicating a decline of Rs. 400 from the previous closing rate of Rs. 1,25,400 per tola recorded on Friday. On March 10, 2024, pure
gold reached an unprecedented high at Rs. 1,26,000 per tola, marking a historic milestone. Similarly, Tejabi gold is presently valued at
Rs. 1,24,400 per tola, reflecting a Rs. 400 decrease compared to Friday's closing price of Rs. 1,24,800 per tola. Meanwhile, the price
of silver has witnessed an increase of Rs. 15 per tola, with the current market value standing at Rs. 1,530 per tola, as opposed to
Friday's closing rate of Rs. 1,515 per tola. While the domestic market sees a downward trend in prices, the international market also
shows significant declines. According to the latest update, the current gold rate stands at $2,155.70 per ounce internationally.
Conversely, silver is demonstrating positive momentum internationally, with prices reaching $25.18 per ounce.

Source: Compiled from various Online Financial News Portals

International
Asia FX muted, dollar steady ahead of Fed, BOJ meetings

Most Asian currencies kept to a tight range on Monday, while the dollar steadied near two-week highs as focus turned squarely to a
swathe of central bank meetings helmed by the Bank of Japan and Federal Reserve. Strong U.S. inflation readings from last week put
traders on guard over any hawkish sentiments from the Fed, while positive wage data and sticky inflation spurred mass speculation
over whether the BOJ will end its ultra-loose policies this week. USDJPY steady, BOJ rate hike in focus, The Japanese yen moved
little on Monday after clocking a volatile week on speculation over an end to the BOJ’s negative interest rate and yield curve control
policies. The BOJ kicked off its two-day meeting on Monday, with a hotly anticipated decision due on Tuesday. The USDJPY pair
had fallen as far as 146 to the dollar, especially after reports showed Japanese labor unions won large wage hikes this year. Recent
data also pointed to inflation remaining sticky, with both factors giving the BOJ enough confidence to end its ultra-dovish policies.
But analysts still remained split over whether the bank will raise rates in March or April, with general consensus leaning slightly
towards an April move. The BOJ is expected to raise rates by 20 basis points to 0.1% from negative 0.1%. While any rate hikes bode
well for the yen, speculation over the timing of the hike saw the USDJPY pair mark volatile moves in recent weeks. The currency
pair hovered around 149 on Monday.

https://www.investing.com/news/forex-news/asia-fx-muted-dollar-steady-ahead-of-fed-boj-meetings-3341202

Canadian Dollar Seeks Opportunities for Growth

The USDCAD pair remains within a sideways range, with the Canadian dollar occasionally showing a tendency to strengthen.
Recent DES data revealed that Canadian households have become more affluent. In Q4 2023, their "net" worth increased by 1.8%,
or 300 billion Canadian dollars, smoothing out the decline seen in the previous quarter.
This increase can be attributed to the recovery in financial market returns, as both stocks and bonds appreciated during the period.
This dynamic compensated for the "modest" decline in the country's housing market value. Overall, Canadians became 712.7 billion
Borrowing rates in Q4 of last year increased for the second consecutive quarter, with households attracting 29.5 billion CAD,
primarily in mortgage loans, followed by consumer loans. These figures raise concerns, suggesting that some households may
become more indebted than others. Canada's economy's loan debt is currently estimated at 2.9 trillion CAD, with three-quarters of
these debts being mortgage loans. However, in the economic context, household debt as a percentage of Canadians' disposable
income accounts for 178.7% in Q4, slightly lower than in Q3 of last year and the lowest level since the end of 2015. Thus, while
debts exist, the overall picture is relatively stable.

https://www.investing.com/analysis/canadian-dollar-seeks-opportunities-for-growth-200646821

US stock futures muted as Fed meeting, Nvidia conference approach

U.S. stock index futures moved little in evening deals on Sunday, with caution ahead of a Federal Reserve meeting dissuading big
trades, while AI darling Nvidia Corp 's annual developer conference also came into focus. Wall Street indexes were nursing a fall
from record highs over the past two weeks, as a rally in heavyweight technology stocks, which was fueled by hype over artificial
intelligence, now appeared to be taking a breather. A series of hotter-than-expected inflation readings also fueled concerns over the
Fed potentially signaling higher-for-longer interest rates. S&P 500 Futures rose 0.05% to 5,185.50 points, while Nasdaq 100
Futures rose 0.1% to 18,071.0 points by 19:04 ET (23:04 GMT). Dow Jones Futures fell 0.1% to 39,126.0 points. Fed in focus after
hot inflation readings, Market focus was now squarely on the conclusion of a two-day Fed meeting on Wednesday. While the central
bank is widely expected to keep interest rates steady, any signals on its plans for cutting rates will be closely watched. Hotter-than-
expected consumer and producer inflation readings last week had ramped up fears that the central bank could offer more hawkish
signals during this week’s meeting. Fed officials have also repeatedly stated that any potential rate cuts will be largely dictated by the
path of inflation, which has so far remained sticky and above the Fed’s 2% annual target. Concerns over the Fed had weighed on
Wall Street indexes last week, albeit marginally.

https://www.investing.com/news/stock-market-news/us-stock-futures-muted-as-fed-meeting-nvidia-conference-approach-3341170