Page 1 - MEX Express - Vol 7 Issue 2
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Mercantile Exchange Nepal Limited                                    MEX EXPRESS
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KYC: Gold                                                            MEX News Portal                                               Volume: 7 • Issue: 2 • Year: 2015 A.D

             PAGE 2                                                                                      PAGE 3  Market Perspective

                                                                                                                                                          PAGE 4

From the CEO’s Desk                                                  No Hike in Interest Rate

      Iwould like to take this opportunity                           but Hype in Market
                           to thank all our associates and
                       stakeholders of the Nepali financial          T his was the year’s 5th among 8            Now investors are keeping their eye        this possible decision of hiking rate.
                       market, especially commodity market to                  times, FOMC members voted         over September 2015 FOMC members
                       have supported us even in the disastrous                for interest rate echelon in      meeting. But their rate hike depends       Many business sectors are not doing
                       situation of earthquakes that hit our nation  a two day meeting and declared that         inflation and employment factors. As       well including Energy sector. As
and the multiple aftershocks for months after as well. The           there was no change in federal fund         current inflation is 0.1% and expected     per current data, growth rate is not
support and dedication shown by our clients, brokers and             rate but just after data was published      rate is 2%, and also as per previous       satisfactory enough and FOMC also
market makers of MEX Nepal is a valued treasure for us and           on NST 23:45,Gold climbed to a day          employment claims & housing sector,        has said that Banks have capitalized
also a great encouragement and motivation for the industry.          high of $1101.80 and recorded volume        it seems that the US economy is doing      less i.e, 2.28 percent as compared to
The future days would definitely be more challenging, but            of 322313 in COMEX. However the             better than that in the 1st quarter. FOMC  previous time 2.29 percent. To hike
with this support between us, we are hopeful to convert              whole day low was $1090.30. Basically,      has given hint to hike rate in coming      interest rate, both labor markets should
every challenge into humble opportunities.                           the gold price actually went up by 1.40     days saying that labor market is getting   be improved as well as inflation must
                                                                     % because of high frequency of buyers       closer to their objective. But there are   be around 2%, and here, labor market
MEX Nepal has always tried to serve the community through            than the weakness of USD.                   certain reasons to be understood behind    has improved but inflation is still 0.1%
sincere efforts. It is an honour to have been of help to House                                                                                              and target is 2% which seems nearly
for Rescue of Afflicted Children, Rasuwa Langtang Liring                                                                                                    not possible in couple of months. We
Anath Sanstha, Rejoice and Salvation in Trinity Services                                                                                                    don’t think US will increase interest
and Nishaya Sewa Sadan (Centre for Helpless). Providing                                                                                                     rate without targeted inflation,
assistance to the charitable organizations in the wake of the                                                                                               moreover Fed will also have to take
earthquake certainly helped bring a ray of hope and a smile                                                                                                 care of bond market before taking
in the faces of the children as well as for us.                                                                                                             any decision about interest rate. Other
                                                                                                                                                            than this, house sales, stock market,
At these times of difficulty also, we are glad we could                                                                                                     consumer spending, borrowing and
publish our annual publication MEX Year book. In our                                                                                                        business profit will be lower if rate is
efforts to keep with the expectations of our brokers and                                                                                                    hiked.
customers it is a glad opportunity to provide the market
with the best services. We are also happy to have launched                                                                                                  Gold investors will not only watch the
one of its kind services in the commodity market of Nepal                                                                                                   coming employment data carefully
- the ALGO. To bring in the world class technology has                                                                                                      but they will also focus on realistic
been an important objective of MEX and to support this,                                                                                                     economic development and the strength
ALGO is inevitably a milestone to facilitate the customers                                                                                                  data. Investors should care about hype
with programmable trading. Commodity market will surely                                                                                                     of bullion market as price might take
move ahead and MEX Nepal will surely lead the way with                                                                                                      a hiccup and return to obvious level.
advanced technology and innovation.                                                                                                                         Gold market will have dependency
                                                                                                                                                            upon the US economy development
To conclude, we should always remember that this is the                                                                                                     and financial market activities too as
time for us to gather our strengths and build the nation                                                                                                    we have observed the lowest level of
together in every possible way we can. We will always try to                                                                                                $1071.94 in the month of July. It might
make sure that we equally contribute to the society and the                                                                                                 make a new low level in coming days
environment while fulfilling our day to day responsibilities.                                                                                               as per the economic activity and high
                                                                                                                                                            frequency trading.
                                           - Jitesh Surendran
                                                                                                                                                            Lakshman Pandit

                                                                                                                                                            Business Development
                                                                                                                                                            MEX Nepal

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