India's MCX gains for 4th day; gold body ponders stake

Last Updated: Thu, Jan 02, 2014 05:35 hrs

Shares in Multi Commodity Exchange of India Ltd gain 2.4 percent, heading for a fourth consecutive day of gains, after Bombay Bullion Association said on Wednesday it was considering buying a 5 percent stake in the company.

India's leading bullion trade body said it was considering buying the MCX stake through a consortium led by a smaller bourse it promotes, Universal Commodity Exchange.

"Through a consortium led by Universal Commodity Exchange, we are trying to buy a 5 percent stake in MCX. The value of the stake would be around 1.25 billion rupees ($20.21 million)," said Mohit Kamboj, president of the Bombay Bullion Association told reporters on Wednesday.

Traders also see synergies between MCX and Bombay bullion Association considering most of MCX volumes were coming in from bullion trades in 2013.

MCX shares gained 8.8 percent over the previous three sessions.

The UCX's offer comes after India's commodity markets last month ordered major shareholder Financial Technologies (India) Ltd to cut its stake to 2 percent or less after calling the company not "fit and proper" to run an exchange.

($1 = 61.8550 rupees)

More from Sify: