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Welcome to the latest issue of NASDAQ Dubai Monthly, our online newsletter that updates market participants about developments at the exchange.




Exchange Views
Jeff Singer, Chief Executive of NASDAQ Dubai, examined the growing signs of life in the global and regional IPO markets in his latest monthly column, Exchange Views, in Gulf News.


Investors positive on NASDAQ Dubai stocks – survey
A monthly survey of investors by SHUAA Capital showed a growing belief that share prices on NASDAQ Dubai will rise in the next 6 months. A total of 43.3% forecast a rise in the July survey, up from 33.7% in June, while 10% expected a fall, compared to 16.9% in June. The survey included forecasts for a range of regional and international markets.

'UAE 20' share index rises strongly, shows strong correlation with MENA markets

The FTSE NASDAQ Dubai UAE 20 share index, which was designed for GCC and international investors, rose 39% from the end of 2008 to the end of July 2009.

The index comprises the 20 largest eligible UAE companies by market capitalisation. Its stocks are free float weighted to ensure that only investable companies are included. They are also liquidity screened to ensure that the index is tradable.

NASDAQ Dubai lists futures contracts over the index. These offer investors a unique tool to gain exposure to the UAE in a single transaction. The index is very well correlated with MENA markets, which can make it an effective hedging tool for investors with existing exposure to the region. See correlations

The constituents of the FTSE NASDAQ Dubai UAE 20 index are DP World, listed on NASDAQ Dubai, together with 10 stocks listed on the DFM and 9 on the ADX. See list of constituents here.

The exchange also lists futures over 21 individual stocks.

July derivatives trading

Momentum in NASDAQ Dubai’s derivatives market continued to build in July with 8,945 futures trading, bringing the total traded so far this year to 42,433.

By volume, the most heavily traded contracts in July were in Air Arabia, followed by the Dubai Financial Market (DFM) and then DP World. By value, FTSE NASDAQ Dubai UAE 20 contracts were the most heavily traded, followed by DFM and Air Arabia.

Equity futures trading – July 2009

Contracts Value
AIRARABIA 2,570

AED  244,417

DFM 1,640 AED 256,340
DPW 1,350 USD 48,510
DANA 1,220 AED 134,815
ARTC 530 AED 143,730
ADCB 400 AED 69,472
ALDAR 320 AED 122,800
RAKPROP 280 AED19,712
DIB 260 AED 63,135
ARMX 170 AED 29,308
SOROUH 100 AED 24,350
NBAD 80 AED 83,600
FGB 20 AED 32,800
UAE 20 Index 5 USD 80,785


Equities

Equities trading volumes reached 127.7 million shares in July, up 32% from 96.5 million recorded in July 2008.

FTSE NASDAQ Dubai 'UAE 20' index
At the end of a volatile month the index closed at 1,736.05 at end-July, 17.45% higher than at end-June. It was the sixth consecutive monthly Increase, leaving the index 39% higher than at the end of 2008. The index comprises DP World as well as 10 stocks on the Dubai Financial Market and 9 on the Abu Dhabi Securities Exchange (ADX).

Read more about the constituents of the index here >

FTSE NASDAQ Dubai 'UAE 20' index

Trading took place during the month in three primary listings - DP World, Depa and Damas – and in Boulder Steel, whose primary market is the ASX in Australia.

In the first seven months of 2009, 1.89 billion shares traded, up 59% from 1.19 billion recorded in the first half of 2008.

NASDAQ Dubai introduced compulsory reporting of all over the counter trades in September 2008.

To see all NASDAQ Dubai listed equities click here >


Dubai Gold Securities

A total of 2,888 Dubai Gold Securities (DGS) traded in July, up 17% from 2,477 in June. This brought the total traded since DGS listed in March to 27,320.

Each security is valued at approximately 1/10th of the spot price of gold.

DGS can be traded on NASDAQ Dubai through a broker, just like equities, and have attracted retail and institutional interest. They have been declared Shariah-compliant.See How to trade on NASDAQ Dubai.


Dubai Share Talk investors event - MAC Capital

Members of the dubaisharetalk.com investors forum attended a presentation on technical analysis given at NASDAQ Dubai by MAC Capital, one of the exchange’s brokers, on August 3. A lively discussion about trading strategies followed. It was the second evening event hosted for members of the forum by the exchange. NASDAQ Dubai looks forward to hosting further investor gatherings.

 

Members' Market Share

EFG-Hermes was the most active Member of the exchange in July by trading value in all types of security. It was the first month this year in which a regional member has been the most active. Next most active were Citigroup and Deutsche Bank. 

Market share, by value of all traded securities, July 2009:
Member Market Share
EFG-Hermes 29%
Citigroup 18%
Deutsche Bank           16%
HSBC 9%
Morgan Stanley 7%
Merrill Lynch 5%
JP Morgan 2%
Emirates NBD 2%
Shuaa Capital 2%
Mubasher 1%
Credit Suisse 1%
Mashreq Securities 1%
UBS 1%
Al Ramz 1%
MAC Capital 1%
SusqueHanna 1%
Arqaam Capital 1%


NASDAQ Dubai Academy

NASDAQ Dubai Academy provides training courses for market participants including issuers, Members, investors and the general public.

Recent courses included a programme on investor relations and public relations, delivered in association with Finance Talking, a specialist financial training company,  and supported by the Middle East Investor Relations Society. In response to high demand, the programme will offer the following further courses.

Foundation level:

  • Introduction to Financial Markets, Financial PR & Investor Relations  -  October 11
  • Introduction to Financial Results & Annual Reports – October 12
  • Introduction to Corporate Finance & Valuation  - October 13

Intermediate level:

  • Best Practice & Compliance in Financial Communications – October 14

In association with Total Solutions, a financial services consulting firm, NASDAQ Dubai Academy will also offer the following anti-money laundering and compliance courses:

Certification in Anti-Money Laundering, Compliance and Market Abuse:
(participants who attend all 3 sessions below will be able to sit an exam to obtain the Certification)

  • Anti-Money Laundering - August 26
  • Market Abuse - September 2
  • Compliance - September 9

Advanced Compliance Skills Workshop:

  • Part 1 - September 29
  • Part 2 - September 30

Sign up for NASDAQ Dubai Academy courses


See www.nasdaqdubai.com for more information about our market or call +971 4 361 2222.
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