NCEL volumes surge 654% in Q1

Trading volumes at the National Commodity Exchange Limited (NCEL) grow 654 per cent to Rs51.76 billion.

KARACHI: Trading volumes at the National Commodity Exchange Limited (NCEL) grew a whopping 654 per cent to Rs51.76 billion in the first quarter of financial year 2010-11.

In the corresponding quarter last year, the volume stood at Rs6.87 billion and in the previous quarter (April-June 2010) it was Rs31.74 billion, 63 per cent less than July-September quarter.

In September alone, the volume was more than Rs25 billion and average daily trading was worth more than Rs1 billion, both of them record highs.

NCEL achieved the growth as a result of continuous introduction of new products and lowering of transaction costs and spreads, a statement issued by the commodity exchange said on Friday.

Additionally, for internationally traded commodities like gold, silver and crude oil, NCEL’s platform provides domestic investors access to the deep liquidity and fine pricing of global markets, it added.

As awareness of commodities as an asset class grows within Pakistan, the membership of NCEL is growing as is the client base, both retail and institutional. NCEL as a licensed and regulated exchange provides an open and transparent platform for trading and investment, the statement said.

Published in The Express Tribune, October 9^th, 2010.