Comexes turnover decline 11% on traders' shift towards riskier assets

Rangebound movement in commodity prices n both agri, non-agri sectors let to decline in turnover on COMMEX

Comexes turnover declined over 11% in the first fortnight of the May due to rangebound movement in commodity prices in both agri and non-agri sectors. The levy of the commodity transaction tax (CTT) and traders’ growing interest towards riskier assets like equity market helped the move.

Data compiled by the commodity derivatives markets regulator the Forward Markets Commission (FMC) showed that all national level commodity futures exchanges generated a total turnover of Rs 6,17,813.80 crore during the period between May 1 and 15 this year as compared to Rs 6,96,610.72 crore in the corresponding period last year.

The cumulative value of trade between April 1 and May 15 this year, however, recorded a growth of over 13% to Rs 20,95,117.67 crore this year from the level of Rs 18,49,082.55 crore in the comparable period last year.

“With traders’ interest grew towards riskier assets like equities, business in commodities gradually started slowing. Also, bearish sentiment in most commodities coupled with a rangebound price movement in gold and silver added to traders’ weak sentiment in commodities trading,” said Naveen Mathur, Associate Director, Angel Broking.

The Multi Commodity Exchange (MCX) continued its leadership and edged higher in business with over 90% market share followed by the National Commodity & Derivatives Exchange (NCDEX) with less than 6%.

MCX cloaked a turnover of Rs 561009.41 crore while NCDEX with Rs 37016 crore during the first fortnight of May this year.
National exchanges contribute over 99% of overall commodity futures trading business.