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Mercantile Exchange Nepal Limited                              MEX EXPRESS
         Invest - Trade - Earn                                                            A Smart Solution for Online Trading
                                                                                                        www.mexnepal.com
An ISO 9001:2008 Certified Exchange

                                                                                                           Volume: 6 • Issue: 4 • Year: 2014 A.D

                                                                                                                                                                     Market

KYC: Natural Gas                                               MEX News Portal                             Market Perspective                               Buyers                       Sellers
                                                                                                                                                            Sellers                      Buyers
                                      PAGE 2                                                       PAGE 3                                           PAGE 4
                                                                                                                                                                     Market Maker
                                                                                                                                                                                 Profit

    From the CEO’s Desk                                        Commodity Portfolio
                                                                                    CERTAINTY
   L et me congratulate all the
                                     market makers who have    I nflation is always a problematic          their portfolio of stocks and bonds        know $8 trillions of new commodities
                                     chosen MEX for market          concern for general investors and      in order to get potential return with      are produced worldwide which represent
                       making and thus added value to the           commodities are highly correlated      calculative risk. Equity and fixed income  almost 10% of whole world wealth
                       Nepalese commodity market. At the       with inflation. It simply gives an obvious  are considered as conventional mainstays   portfolio. This data tells itself that
same time we are equally delighted to share with you that      message that it can be used to hedge        of any portfolio whose value can be        commodity market bears a wide range
we have moved a step further in physical delivery of Silver    against inflation as well as to design      managed by adding commodities to make      of opportunities to mitigate risk through
by adding multiple number of contracts in it.                  the risk/return performance of portfolio.   proper balance in the portfolio.           different forms of commodities.
                                                               Commodity being a diverse kind of asset
For MEX Nepal, to educate and train the community of           category is mostly independent of stocks    Commodities being tangible assets like        Investor can avail exposure to
Nepalese commodity market has been a primary objective.        and bonds which makes commodities to        gold, silver, cocoa, coffee, wheat etc     commodities through various ways
To achieve this MEX provides free training at MEX              draw attention of investors to diversify    have tendency to give high returns on      like physical commodities, diversified
premises. MEX is also continuously organizing SPACE- in                                                    investment with calculative risk as we     commodity portfolios, natural resources
various management colleges where the essential topics of                                                                                             equity, managed funds and commodity
commodity derivatives are delivered. Through this effort                                                                                              indices. Now a days, commodity futures
we are trying to nurture the market participants in terms                                                                                             is gaining an imminent edge towards
of commodity knowledge. Till now we have covered most                                                                                                 managed portfolios which gives risk
of the business schools inside Kathmandu valley and we                                                                                                adjusted returns through wide range of
are planning to reach graduate and under graduate colleges                                                                                            commodity contracts.
outside the valley in near future.
                                                                                                                                                      Another beauty of commodity futures
Apart from education and training, MEX is providing                                                                                                   investment is that price of two
marketing help to our business associates to explore their                                                                                            commodities are not highly correlated
business in untouched sectors and thus broaden their                                                                                                  with each other. the factors affecting
prospects. We do believe in growing together by cooperating                                                                                           the price of cocoa are different from the
with each other. Therefore we are always happy to welcome                                                                                             factors affecting the price of silver or
our associates to have common interaction and then build                                                                                              crude oil. Therefore, adding commodity
this market towards an integrated dynamism. We hope to                                                                                                to portfolio is definitely going to give
maintain enthusiasm, and dedication with constructive                                                                                                 excellent return.
efforts of commitment and performance to our clients.
                                                                                                                                                      Commodity portfolio managers or AE
We still have a long journey to travel but our goal is                                                                                                (Account Executives) make a pool of
crystalline clear i.e., to lead this market to an esteemed                                                                                            commodities which is thus used to
height.                                                                                                                                               mitigate risk and have assured return
                                                                                                                                                      with time. We can see an example of
                                           - Jitesh Surendran                                                                                         portfolios that have allocated weight to
                                                                                                                                                      commodities to form portfolios.

                                                                                                                                                      Commodity investor can come up with
                                                                                                                                                      same type of portfolios in Nepalese
                                                                                                                                                      market too, to take the opportunity of
                                                                                                                                                      fast growing commodity market, trader
                                                                                                                                                      may design their own portfolios as per
                                                                                                                                                      their own requirement so that, loss in
                                                                                                                                                      one commodity can be recovered by the
                                                                                                                                                      fund value through other contracts or
                                                                                                                                                      commodity with the help of long or short
                                                                                                                                                      positioning. Lastly, all the businesses are
                                                                                                                                                      having risk but traders/managers need to
                                                                                                                                                      manage their returns by diversifying the
                                                                                                                                                      risk while making the portfolio because
                                                                                                                                                      as safe is better than sorry.

                                                                                                                                                            Lakshman Pandit

                                                                                                                                                            Manager
                                                                                                                                                            Business Development
                                                                                                                                                            MEX Nepal

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