Business | Markets
DGCX posts record trade in February
Maintaining its strong growth curve, Dubai Gold and Commodities Exchange on Sunday reported its highest-ever trading volumes in February 2008, marked by intense activity across metals and currencies.
- Staff Report
- Published: 00:32 March 10, 2008
Dubai: Maintaining its strong growth curve, Dubai Gold and Commodities Exchange on Sunday reported its highest-ever trading volumes in February 2008, marked by intense activity across metals and currencies.
Total volumes traded on DGCX in February rose at 118,000 contracts, soaring 66 per cent from 70,000 contracts in the same period last year. February volumes also surpassed the previous record of 108,190 contracts in January 2008.
Commenting on the pace of trading in February, Malcolm Wall Morris, CEO of the Dubai Gold and Commodities Exchange, said, "The exchange has charted a strong course for the second consecutive month, reflecting growing favour among investors for DGCX. Trading in February proved to be exceptional, exceeding all records, as the entire commodity spectrum attracted high interest. In addition to gold and currencies which scaled new highs, innovative products pioneered by DGCX also gained momentum. "
Gold
Morris said that February volumes in gold touched an all-time high of 96,100 contracts, rising by a spectacular 57 per cent year-on-year and 12 per cent over the previous month.
The total number of contracts transacted in currencies also surged by a significant 115 per cent year-on-year.
The month also mirrored global trends, which saw an increasing number of investors turn to commodities as a hedge against inflation. Gold raced to touch historic highs during the month, boosted by a weakening dollar and buoyant oil prices. Meanwhile, the greenback deteriorated among major rivals, particularly against the Euro led by lower-than-expected manufacturing and inflation data and concerns about further cuts in interest rates by the US Federal Reserve.
The average daily volume in February rose nearly 60 per cent to 5,600 contracts from 3,500 contracts in the corresponding previous period.
Nishat Bandali, chief marketing officer, said, "The rising global consumption of commodities coupled with price volatility is set to accelerate demand. DGCX intends to capitalise on this growth by offering a wide array of risk management products."
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