Pak NCEL launches first futures exchange index
Wednesday, 16 December 2009
KARACHI, Dec 15 (Commodity Online): Pakistan's National Commodity Exchange Limited (NCEL) Monday launched the first Commodity Index in the country.
Speaking to reporters here, NCEL chairman Sameer Ahmed said, "The NCEL Commodity Index based on the composition of five commodities available for trading on NCEL covering palm olien, gold, silver, crude oil and Irri-6 Rice,"
He said The Index designed to provide a diversified benchmark for commodities traded on the nation's only futures exchange.
The Commodity Index is an equally weighted price index that represents price movements of a portfolio of physical commodities listed on NCEL, he added.
"This Index is launched to meet the increasing demand to track commodity prices and will serve as a reference measure of commodities sectors in the country," Sameer said.
The commodity futures offer insurance against the periods of unanticipated inflation besides it will keep the participants aware of happenings in the commodities world as it now increasingly affects all other areas of economic activity, he said.
He said the Index was calculated on a 1000 base from a corresponding period of May 11, 2007 when NCEL formally launched its operation. The index currently stands at 1921 and will be computed on a daily basis.
It will also be used as a general economic indicator for gauging the direction of commodity markets forecasting general price movements, market research, comparing price trends and for current prices of specific commodities.
He said NCEL has plan to introduce sector sub-indexes, representing the major commodity sectors within the index.
Speaking to reporters here, NCEL chairman Sameer Ahmed said, "The NCEL Commodity Index based on the composition of five commodities available for trading on NCEL covering palm olien, gold, silver, crude oil and Irri-6 Rice,"
He said The Index designed to provide a diversified benchmark for commodities traded on the nation's only futures exchange.
The Commodity Index is an equally weighted price index that represents price movements of a portfolio of physical commodities listed on NCEL, he added.
"This Index is launched to meet the increasing demand to track commodity prices and will serve as a reference measure of commodities sectors in the country," Sameer said.
The commodity futures offer insurance against the periods of unanticipated inflation besides it will keep the participants aware of happenings in the commodities world as it now increasingly affects all other areas of economic activity, he said.
He said the Index was calculated on a 1000 base from a corresponding period of May 11, 2007 when NCEL formally launched its operation. The index currently stands at 1921 and will be computed on a daily basis.
It will also be used as a general economic indicator for gauging the direction of commodity markets forecasting general price movements, market research, comparing price trends and for current prices of specific commodities.
He said NCEL has plan to introduce sector sub-indexes, representing the major commodity sectors within the index.