Nepal-France trade ties discussed

By A Staff Reporter

KATHMANDU, Feb. 22: FNCCI acting president Binod Bahadur Shrestha and FNCCI Honourary Trade Representative to France Mukunda Man Amatya during a meet have stressed increasing trade activities between the two countries and to attract French investors to Nepal.

They also discussed the tourism flow into Nepal and strengthening economic and other cooperative activities at the government and the private sector level, a press release states.

To established economic and trade relations with foreign countries and attract foreign investments in the country FNCCI has appointed honorary trade representatives in the People’s Republic of China, Japan, Russia, France, Qatar and the United States of America. This shows feeorts are being made for strengthening economic and professional relation and attracting foreign investments and technologies, the release states further.

France is a major trade partner of Nepal. In the fiscal year 2057/58 the total exports from Nepal to France was worth more than Rs. 676 million. Likewise, imports from France exceeded Rs. 1.8 billion. In that year Nepal suffered a loss of Rs. 408 million. Major exports to France are readymade goods, carpets, handicrafts, woolen goods, Nepalese papers, paper products and leather goods. On the other hand, Nepal imports electronic and machinery equipment, oil seeds and food items.

As per the record of May 2002, eight projects like hotels-restaurants, ready made garments, mineral water, leather goods and bricks with French investments have received certificates and other three are in process of acquiring them.

French tourists visiting Nepal in the year 2000 were 24,506 in 2000 and declined by 14 per cent in 2001 to reach 21,000.

RBS to introduce new schemes in insurance market

By A Staff Reporter

Kathmandu, Feb 22: The Rastriya Bima Santhan (RBS), the pioneer insurance company is observing its 36th anniversary Sunday. The RBS- the government undertaking covers almost 65 per cent of the total insurance market (both life and non-life) in the country.

According to RBS, it is going to introduce new schemes of insurance in both life and non-life insurance sectors. The RBS, as the biggest collector has collected more than Rs 270 million in the life insurance sector and over Rs 590 million in non –life sector.

His Majesty’s Government owns 50 percent of the total share capital, Nepal Bank Limited owns 30 per cent and remaining 30 per cent share has been allotted to the general public.

Despite sharp competition in the private sector, the RBS is still considered one of the most reliable insurance companies in the country.

Surendra Man Pradhan, Chief Administrator said that the RBS would introduce new service packages to its clients.

Massive restructuring in NBL is in offing

By A Staff Reporter

Kathmandu, Feb 22: Following the approval of its proposal by the Nepal Rastra Bank (NRB) and the World Bank (WB), the ICC Management Team is going to introduce a massive restructuring programme in the Nepal Bank Limited.

After the ICC Management team took over the management of the NBL on July 22, 2002, it has been doing homework in restructuring the bank’s overall management.

The new management team, according to a senior official at the bank is in the process of cutting down the number of staff by almost 30 per cent.

On top of that the bank is mulling over to whittle down the number of branches to an affordable size.
The NBL- the oldest bank in the country has more than 5500 employees. The total number of branches is 126.

The sources said that the management is in the process of implementing the new provisions for minimizing the lending volume and strengthening auditing system.

In addition, the new management is going to provide training opportunities to its middle level managers in order to make them more efficient.

The management is also going to introduce new credit policy with the objective of making the bank’s credit system of reliable and competent.

The new management is also working on creating international standard loan risk-rating system based on matrix system.

However, the Nepal Bank Employees’ Association has asked the management to provide training to the employees to make them more efficient. Massive restructuring
in NBL is in offing

NEPSE index oscillating
Rickety market dampens investment climate

By A Staff Reporter

Kathmandu, Feb 22: The steady decline in the trading of share in the Nepal Stock Exchange (NEPSE) after a visible recovery some three weeks before has now dampened hopes of investors.
The decline in the NEPSE index has now proved that its rise was not mainly due to the ceasefire. But stock market analysts say that the ceasefire announcement prompted major stockbrokers to purchase shares in a large volume with the anticipation of rise in the demand of shares in future, but the real market did not respond and caused decline in the index.

The stock market has now been overwhelmed by the sellers, analysts say adding “ The index will go on declining for some time.”

The rise in the index was not due to economic reason; therefore it has come down, says Arjun Khaniya, a stock market analyst.

With the decline in the index by 0.24 point last week, prospects of growth have become dim.
The NEPSE index had declined by almost 4 points two weeks before (Feb 10-14). Speculators believe that the uncertainty of political development is the reason behind the rickety situation of the stock market.

“But the situation is still unpredictable,” said Anoop Raj Shrestha, a financial market analyst. Nobody can say whether the stock market would go up or come down, he adds.

The already beleaguered Nepalese stock market had started gaining ground unexpectedly following the come to its size after certain period. “It is oscillating now.”

The market had already reached to its bottom line, so we were waiting for its revival, he added. “But there is no economic reason behind the upsurge of index,” he asserted.

Stockbrokers said that the announcement of ceasefire was not only the cause of rise and fall in the The size of transaction at the NEPSE trading floor has gone down in comparison to the previous week.

Last week economists were skeptic about the sudden rise in the NEPSE index saying, “It would not last for long time.” Because no visible change had been witnessed in the money market and the bullion market as well.

The price of gold was on rise with no sign of immediate decline. There should have been some impact in the money market for the visible change in the NEPSE index, the say.

According to Nepal Stock Exchange (NEPSE), the index went down to 211 Friday. The NEPSE index had reached to over 217 in the first week of this month. A total of 68689 shares amounting to Rs 115,33,951/- were traded through 3070 transactions two weeks before, whereas the number of transaction declined to 1070 last week A total of 37148 shares amounting to Rs 103,29,690/- were traded.

In group-wise transaction, index of commercial banks had witnessed a slight increase. It increased to 206.62 from 206.6.

Similarly the index of manufacturing sector remained to 253.20. The index of hotel sector also remained to 200.20. The index of other sector remained to 61.19. The index of trading sector also remained to 92.85, whereas the index of development bank came down to 258.62 from 264.12.
Similarly the index of trade sector remained at 92.85. The index of insurance sector had witnessed a slight. Similarly the index of development bank declined to of volume of transaction Nepal Bangladesh Bank (NBB) registered the highest transaction of Rs 14,68,130/-

The NEPSE trading floor remained open for four days. Among the companies that registered transaction for four days were Nepal Bangladesh Bank (Rs 411-417), Bank of Kathmandu (Rs 247-255), NIC Bank Ltd (Rs 218-228), Himalayn Bank (Rs 815-825) Nepal Life Insurance Co. (Rs 127-129), Nepal Merchant Bank and Finance Ltd (Rs 185) United Finance (Rs 112), Nepal Development Bank (Rs 150) and Development and Credit Bank (Rs 165-164).

Among the companies having transaction for three days were Standard Chartered Bank (Rs 1550-1570) Oriental Hotels (Rs 56-54), Nepal Awas Bikas Finance Company (Rs 155-150) and Neco Insurance (Rs 135-150)

National Finance, Development and Credit Bank and Universal Finance registered transaction for only one day.

Out of 52 companies only 31 companies registered their transaction last week Feb 3-7). The NEPSE had remained closed on Feb 19 due to the public holiday.