Comexes see 45% growth in August turnover

The three national commodity exchanges recorded a staggering performance in August despite uncertainty over recovery in global economies forced participants to play safe and hold back their investment and trading plans.

The three exchanges including the Multi Commodity Exchange (MCX), the National Commodity & Derivatives Exchange (NCDEX) and the National Multi-Commodity Exchange (NMCE) that represents over 95 per cent of the country’s futures trade, witnessed 45.40 per cent rise in turnover at Rs 6,17,484.83 crore in August 2009 as compared to Rs 4,24,666.28 crore in the corresponding month last year. Total agri business of the three exchanges shot up 119 per cent to Rs 121619.44 crore while non-agri business also rose 34.33 per cent to Rs 495865.40 crore.
 

MONEY MATTERS Turnover of exchanges in August (Rs cr)
Exchange	2008	2009	Change  (%)
MCX	3,65,820.22	4,88,314.47	33.48
NCDEX	55,103.98	93,211.63	69.16
NMCE	3,742.09	35,958.73	861.00

The development assumes significance as the slowdown in global economy feared participants to play “protectionism” to remain safe in case crisis goes deeper.

The largest exchange, MCX, continued to remain the major contributor with a 79.08 per cent contribution to the total turnover in August 2009. Although the share has marginally declined from 86.14 per cent from the same month last year, analysts attribute the fall to the larger base of the exchange’s business. However, total business of the exchange grew 33.48 per cent from Rs 3,65,820.22 crore to Rs 4,88,314.47 crore in the month under consideration.

The intensified promotional effort in agricultural commodities has brought positive result for MCX with turnover from this segment rose a phenomenal 174 per cent to Rs 7,781.26 crore from Rs 2,839.80 crore. Business in non-agri segment also continued to bolster to Rs 4,80,533.22 crore, a rise of 32.39 per cent from Rs 3,62,980.42 crore.

NCDEX also continued its growth saga with overall turnover rose 69.16 per cent to Rs 93,211.63 crore in August this year from Rs 55,103.98 crore in the same month of previous year. Business from agricultural commodities shot up by 84.54 per cent to Rs 91,778.92 crore from Rs 49,734.42 crore, turnover from non-agri segment nosedived 73.32 per cent to Rs 1,432.71 crore from

Rs 5,369.56 crore. Though the exchange has intensified its attention on non-agri contracts, the result is yet to reflect on it’s business. The exchange’s contribution to the overall monthly turnover rose from 12.98 per cent in August 2008 to 15.10 per cent in August 2009.

The Ahmedabad-based NMCE has emerged as a significant player in commodity futures trade with turnover rising 861 per cent at Rs 35,958.73 crore in August this year from a mere Rs 3,742.09 crore in the same month last year. The exchange’s contribution to the overall turnover of the commodities’ futures trade sharply jumped to 5.82 per cent from a paltry 0.88 per cent during the month.