Karachi: Pakistan Mercantile Exchange Limited completed another eventful year in 2010 – 2011. This year brought about major changes and fueled a new growth continuum for the Exchange. The year 2010 – 2011 marked an increase of 671 percent from last year.In terms of volume this amounts to Rs 490,515,367,875 in volumes visa vis Rs 63,610,332,963 last year. The increase in terms of number of lots 1,475,582 were remarkable and stood at a 365 percent growth on last years 317,024 lots traded.
We have been growing continuously and consistently over the entire year. During the last quarter the total traded value at PMEX was Rs 211,340,279,318 whereas the KSE closed the quarter at a volume of Rs 189,139,444,428 and LSE and ISE were at Rs 3,425,438,718 and Rs 138,604,723 respectively. With this major spurt in the last quarter of the fiscal year the Mercantile Exchange joined the league of the stock exchanges. This serves as an indicator that PMEX is gaining the confidence of the investors as a trading platform for hedging and for an alternative asset class.
This increasing growth is coming about as a result of newer products, low transaction costs, tight spreads, deep liquidity, growing membership and efficient systems of PMEX that make it very easy for brokers and their clients to transact and manage their trades.
Pakistan Mercantile Exchange, changed its name in March 2011 from National Commodity Exchange to broaden its scope of activity, is now open almost round the clock and growing at a rapid pace with the trading in Gold, Silver and Crude Oil available from 5:00am to 2:00am (local time).
“The name change has been decided with a view to communicating more accurately our mandate as a nationwide commodities and futures exchange. The new name also reflects more accurately the wide variety of our current and planned business lines and products,” said Mr. Samir Ahmed in the press communiqué
PMEX being sensitive to investor needs launched smaller size contracts in Silver and Crude oil in June 2011. Silver Futures is 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.
These smaller size lots are introduced in response to the growing demand of investors and medium size players to be able to invest in silver and crude oil as well as the smaller size contracts in gold. Now PMEX has a complete range available for small, medium and large investors to invest in Gold, Silver and Crude Oil futures’ contracts.
Furthermore, whilst working on improving upon the existing and listed products, PMEX has the main Agri futures products in pipeline and plans for launch within the calendar year 2011. Recently, the sugar contract was also approved and it was launched on the 27th of June 2011. It is now available for trading on the Exchange. This listing offers industrial consumers of sugar the option to purchase sugar on the exchange and hedge against price changes. Wheat and Maize contracts are also in the process of being finalized.
The Agri Futures Contracts listing and launch bears good news for the stakeholders. PMEX offers a platform where growers, producers, processors, traders, exporters, importers and investors can trade with ease. By providing a transparent and regulated market, it enables proper price discovery and enables participants to invest and hedge themselves against the price volatility of agriculture and non-agriculture commodities.
PMEX is Pakistan’s first and only demutualised commodity futures exchange. Its shareholders are National Bank of Pakistan, Pak Kuwait Investment Co, Zarai Taraqiati Bank and the three stock exchanges of the country. PMEX currently lists various contracts for trading in Gold, Silver, Crude Oil, IRRI6 Rice, Palm Olein and Kibor.