Page 1 - MEX Express - Vol 7 Issue 2

Mercantile Exchange Nepal Limited
Invest - Trade - Earn
An ISO 9001:2008 Certified Exchange
KYC: Gold
PAGE 2
From the CEO’s Desk
Iwould like to take this opportunity
to thank all our associates and
stakeholders of the Nepali financial
market, especially commodity market to
have supported us even in the disastrous
situation of earthquakes that hit our nation a two day meeting and declared that
and the multiple aftershocks for months after as well. The
support and dedication shown by our clients, brokers and
market makers of MEX Nepal is a valued treasure for us and
also a great encouragement and motivation for the industry.
The future days would definitely be more challenging, but
with this support between us, we are hopeful to convert
every challenge into humble opportunities.
MEX Nepal has always tried to serve the community through
sincere efforts. It is an honour to have been of help to House
for Rescue of Afflicted Children, Rasuwa Langtang Liring
Anath Sanstha, Rejoice and Salvation in Trinity Services
and Nishaya Sewa Sadan (Centre for Helpless). Providing
assistance to the charitable organizations in the wake of the
earthquake certainly helped bring a ray of hope and a smile
in the faces of the children as well as for us.
At these times of difficulty also, we are glad we could
publish our annual publication MEX Year book. In our
efforts to keep with the expectations of our brokers and
customers it is a glad opportunity to provide the market
with the best services. We are also happy to have launched
one of its kind services in the commodity market of Nepal
- the ALGO. To bring in the world class technology has
been an important objective of MEX and to support this,
ALGO is inevitably a milestone to facilitate the customers
with programmable trading. Commodity market will surely
move ahead and MEX Nepal will surely lead the way with
advanced technology and innovation.
To conclude, we should always remember that this is the
time for us to gather our strengths and build the nation
together in every possible way we can. We will always try to
make sure that we equally contribute to the society and the
environment while fulfilling our day to day responsibilities.
- Jitesh Surendran
MEX EXPRESS www.facebook.com/mexhome
MEX EXPRESS
A Smart Solution for Online Trading
www.mexnepal.com
MEX News Portal
PAGE 3 Market Perspective
No Hike in Interest Rate
but Hype in Market
T his was the year’s 5th among 8
times, FOMC members voted
for interest rate echelon in
there was no change in federal fund
rate but just after data was published
on NST 23:45,Gold climbed to a day
high of $1101.80 and recorded volume
of 322313 in COMEX. However the
whole day low was $1090.30. Basically,
the gold price actually went up by 1.40
% because of high frequency of buyers
than the weakness of USD.
Volume: 7 • Issue: 2 • Year: 2015 A.D
PAGE 4
Now investors are keeping their eye
over September 2015 FOMC members
meeting. But their rate hike depends
inflation and employment factors. As
current inflation is 0.1% and expected
rate is 2%, and also as per previous
employment claims & housing sector,
it seems that the US economy is doing
better than that in the 1st quarter. FOMC previous time 2.29 percent. To hike
has given hint to hike rate in coming
days saying that labor market is getting
closer to their objective. But there are
certain reasons to be understood behind
www.twitter.com/mexnepal
this possible decision of hiking rate.
Many business sectors are not doing
well including Energy sector. As
per current data, growth rate is not
satisfactory enough and FOMC also
has said that Banks have capitalized
less i.e, 2.28 percent as compared to
interest rate, both labor markets should
be improved as well as inflation must
be around 2%, and here, labor market
has improved but inflation is still 0.1%
and target is 2% which seems nearly
not possible in couple of months. We
don’t think US will increase interest
rate without targeted inflation,
moreover Fed will also have to take
care of bond market before taking
any decision about interest rate. Other
than this, house sales, stock market,
consumer spending, borrowing and
business profit will be lower if rate is
hiked.
Gold investors will not only watch the
coming employment data carefully
but they will also focus on realistic
economic development and the strength
data. Investors should care about hype
of bullion market as price might take
a hiccup and return to obvious level.
Gold market will have dependency
upon the US economy development
and financial market activities too as
we have observed the lowest level of
$1071.94 in the month of July. It might
make a new low level in coming days
as per the economic activity and high
frequency trading.
Lakshman Pandit
Manager
Business Development
MEX Nepal
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