Exchanges benefit from volatile market: In Indian Markets also Brokerage Companies are gaining due to this high volatitity-as more investors buy and sell, more the brokerage companies gain due to increase in the volume of trade; this is a simple fact. I have already recommended BNK Capital Markets Ltd again at Rs.105. Enjoy the ride. My earlier recommended Khandwala Securities Ltd at Rs.26 has proved to be a multi-bagger in 250 days time frame: Yesterday, Kohinoor Broadcasting Corporation Ltd & Sahyadri Industries Ltd hit the buyer freeze, when the the markets are down more than 700 points: Associated Alcohol and Breweries Ltd recommended at Rs.37 and Rs.44, made new high yesterday: Also looking great are Elenet Technologies Ltd, Winsome Textiles Ltd, H S India Ltd, Ennore Coke, etc. at the CMP: Use this opportunity to buy good scrips at reasoble valuations. These types of opportunities comes once in a blue moon and hence make use of it.....Please read the following write-up and you will understand who is spreading all these canards about the US economy--the finger of suspicion points to the predatory brokerage houses in the US, to generate more income from the market volatility--a new way to fool the gullible investors: I have recommended a company which is now purely into defence related transaction to the Premium and Quickie Group Members. The said company commenced Commercial Production in both it's overseas units. Also it is getting benefits from the Special Products Division. The scrip is all set to move up to Rs.80 plus in the next 180 days:
While volatility in the stock markets has made for a roller coaster for many sectors, one group of companies taking advantage of the wild swings is the stock exchange operators themselves.The current volatility in the equity and fixed-income markets has driven trading volume higher, and trading volume is where exchange operators make their money.
Across the board, exchange operators, such as Intercontinental Exchange, CME Group Inc. and Nasdaq Stock Market Inc are reporting record volume.
'Volatility is good for business,' Keefe, Bruyette & Woods Inc. analyst Niamh Alexander said.
CME Group, the operator of the Chicago Mercantile Exchange, said November volume averaged 13 million contracts per day, a 41 percent increase from the same month a year ago.
Intercontinental Exchange's European futures trading increased 30 percent in November, while U.S. futures jumped 13 percent from the year-ago period.
The heightened volatility and trading volume in the market have been reflected in the prices of most of the major exchanges. Since market volatility increased as credit markets began to deteriorate in July, shares of Nasdaq increased 53 percent, while CME Group shares jumped 29 percent. Among the major exchanges, only Nymex Holdings Inc, the operator of the New York Mercantile Exchange, declined during the period, falling 1 percent.
The broader markets did not fare nearly as well. The Dow Jones Industrial average has gained 0.5 percent since July, while the Standard & Poor's 500 declined 1 percent during that time.
Exchange operators -- unlike nearly all other financial services sectors -- are relatively insulated from the tightening credit market, allowing investors to gravitate toward them, Alexander said. The Nasdaq Financial index has declined 10 percent since the beginning of July.
Exchanges have also received a boost from a flurry of mergers and acquisitions. Nasdaq in recent months has agreed to deals to acquire the Philadelphia and Boston stock exchanges and take over OMX AB, a Nordic exchange operator.
Over the summer, CME Group completed its acquisition of the Chicago Board of Trade, helping to boost the company's earnings and revenue.
But because of the volatility-driven volume, Alexander said, it is difficult to predict how exchange operators will fare in 2008.
Some analysts already see December volume trends as a potential sign volume is modestly declining. Friedman, Billings, Ramsey & Co. analyst Matt Snowling said in a research report he expects month-over-month volume declines of 12 percent to 15 percent for Nasdaq.
Snowling cut his fourth-quarter, 2008 and 2009 earnings estimate for the exchange based on that decline. [With inputs from the Internet]
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Fresh requests or those who have applied after 15 th December, 2007 could not be accomodated at present or before 31st December, 2007 due to some unaviodable reasons and hence my regrets for that....Thus the subscription for the above two services is open for those who have sent me request before 15 th December, 2007. But subscription to my Portfolio Management Service has been opened from today (18-12-07). So those who want their portfolios to be managed by me could send me request--here also there are limited seats and requests will be considered on the "first come, first server", basis. The porfolio Size of Indian Investors should not be less than 2 lakhs and for NRI Investors, not less than Rs.5 lakhs to be managed by me....
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