Fiscal 2011 review: Commodity exchange grows seven-fold

Topples Karachi Stock Exchange in total trade value during last quarter.

KARACHI:

Pakistan Mercantile Exchange Limited (PMEX), the country’s commodity exchange, completed yet another eventful year as it grew seven-fold.

Volumes stood at Rs490.5 billion in fiscal 2011 against Rs63.6 billion in the previous year, according to a statement issued by the exchange.

The total traded value at PMEX of Rs211 billion during the last quarter was more than the Karachi Stock Exchange’s Rs189 billion. This serves as an indicator that PMEX is gaining the confidence of investors as a trading platform for hedging and for an alternative asset class, the statement said.

PMEX currently lists various contracts for trading in gold, silver, crude oil, irri6 rice, palm olein and kibor.

PMEX launched smaller size contracts in silver and crude oil in June 2011 with silver futures now available in 100 oz along with the existing 500 ounce lot size whereas crude oil is available for trading in 10 barrel lot size along with the existing 100 barrel lot.

Recently, sugar contract was also approved and was launched on the 27th of June 2011. This listing offers industrial consumers of sugar with the option to purchase sugar on the exchange and hedge against price changes. Wheat and maize contracts are also in the process of being finalised.

Published in The Express Tribune, July 6^th, 2011.