MCX hits 52-week high

The stock rallied 10% to Rs 1,181 on the BSE in intra-day trade, extending its 16% surge in past two weeks.

Shares of Multi Commodity Exchange of India (MCX) has moved higher to its 52-week high of Rs 1,181, up 10% on the BSE in intra-day trade, extending its 16% surge in past two weeks.

Since September 12, the stock outperformed the market by surging 27% against 0.18% rise in the S&P BSE Sensex.

The MCX has hiked the transaction charges for trades on its platform with effect from October.

“With effective from 1st October, 2016, the transaction fees on the turnover value shall be paid by the members based on their turnover in all the commodities traded on the exchange,” MCX said in a regulatory filing.

For agri-commodities the transaction fee will be levied @ Rs 1.75 per Rs 1 lakh of turnover on the total turnover of the member.

For non-agri commodities the transaction fee will be levied @ Rs 2.60 per Rs 1 lakh of turnover on the average daily turnover of up to Rs 350 crore and @ Rs 1.75 on incremental turnover of above Rs 350 crore.

Average daily turnover will be calculated at the end of every month by way of dividing the total turnover of the member by the total number of trading days, it added.

According to Business Standard reports, the Securities and Exchange Board of India (Sebi) has taken several recent decisions, which indicate it is preparing commodity exchanges (comexes) for the next stage of reforms.

It has tightened norms for the agricultural segment and loosened circuit limits for non-agri commodities, while doubling the margins for all commodities. And, allowed exchanges to reduce transaction charges and improve liquidity. Also, it has decided to allow introduction of options trading and index futures, besides allowing new market participants - banks, mutual funds and foreign hedgers, which trade with India. CLICK HERE TO READ FULL REPORT

Analysts at IIFL Institutional Equities recommend ‘buy’ rating on the stock with a target price of Rs 1,197.

“With central banks across the world cutting or not raising interest rates and with benign global liquidity conditions due to quantitative easing, we expect the healthy volume trends to sustain. Hence, we raise our core revenue estimates by 5% each for FY17 and FY18. SEBI’s approval for new products such as options and indices will commence in a phased manner and we build these for FY18 only,” analysts said in report dated September 1.

At 12:33 am, the stock was up 9% at Rs 1,163 on the BSE. The counter has seen huge trading volumes with a combined 2.81 million shares changed hands so far, as against an average sub 500,000 shares that were traded daily in past two weeks on the BSE and NSE.