Monday 19 August 2013

MCX hits the roof on bargain hunting

MCX hit an upper circuit limit of 5% at Rs 255.40 at 10:28 IST on BSE on bargain hunting after the stock crashed 67.23% in the preceding 17 trading sessions to Rs 243.25 on 16 August 2013, from a recent high of Rs 742.25 on 22 July 2013.

Meanwhile, the BSE Sensex was down 239.29 points, or 1.29%, to 18,358.89.

On BSE, 5.07 lakh shares were traded in the counter compared with average volume of 89,643 shares in the past one quarter.

The stock hit a low of Rs 238.30 so far during the day, which is also a record low from the counter. The stock hit a record high of Rs 1,617 on 13 November 2012.

The stock had under performed the market over the past one month till 16 August 2013, sliding 65.37% compared with the Sensex's 6.31% decline. The scrip had also under performed the market in past one quarter, falling 74.20% as against Sensex's 8.15% fall.

The small-cap company has an equity capital of Rs 51 crore. Face value per share is Rs 10.

Shares of MCX witnessed selling pressure recently as National Spot Exchange Ltd (NSEL), was engulfed in a crisis after it suspended trade on 31 July 2013, raising concerns about possible default of Rs 5600 crore due to investors, including 7,000 small investors.

MCX and NSEL are group companies of Financial Technologies India Ltd (FTIL).

MCX issued a clarification during trading hours on Friday, 16 August 2013, that it has no exposure to crisis-hit NSEL.

MCX and NSEL are totally different entities with no financial commitments or exposure to each other whatsoever, MCX said in a filing with the BSE.

MCX is in full compliance with the directive of the Forward Markets Commission (FMC), the commodity markets regulator, on investments, loans and advances, it said in the filing.

That apart, the exchange has effective risk management system and monitoring of warehouses, it added.

MCX is a debt-free company and has a net worth of Rs 1214 crore in the quarter ended 30 June 2013. The market share continues to be above 86% of the total commodity futures trade in the country, the filing added.

MCX's net profit fell 7.14% to Rs 60.11 crore on 3.02% increase in total income to Rs 151.35 crore in Q1 June 2013 over Q1 June 2012.

MCX is a dominant player in commodity exchanges in India.

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