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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.



Soud Ba’alawy steps down as Chairman

Soud Ba'alawy has stepped down as Chairman of NASDAQ Dubai after more than two years overseeing the successful expansion of the Exchange. Mr. Ba'alawy has resigned in order to focus more closely on his core role at Dubai Group. Mr. Ba'alawy said: "I am delighted to have had the opportunity to lead NASDAQ Dubai through a period of significant development, including the launch and rapid expansion of its equity derivatives market and substantial growth of its equity trading volumes.  Jeff Singer, Chief Executive of NASDAQ Dubai, said: "Soud Ba'alawy has guided the exchange with vigour and strategic insight during a transition period in which we have expanded our investor base regionally and internationally and attracted new listings including equities and Sukuk.” A new Chairman of NASDAQ Dubai will be appointed soon.

Read press release



Exchange Views
In his monthly column in November, Jeff Singer, Chief Executive of NASDAQ Dubai, looked at how international fund managers view Dubai’s capital markets. Gathering at the Borse Dubai investor conference in New York, they expressed a desire for greater critical mass of attractive assets and increased regulatory robustness. The Exchange Views column was published in Gulf News and Al Khaleej

Dubai Gold Securities hit trading record

Trading volumes of Dubai Gold Securities (DGS) rose to a monthly record of 40,668 on NASDAQ Dubai in November, more than three times the previous high of 12,844 recorded in May.

The increase in volumes coincided with a 13% increase in the spot price of gold during November. A total of 80,881 DGS have traded since the securities listed in March 2009, with November accounting for just over half the total.

Each DGS security is valued at approximately 1/10th of the spot price of gold. DGS are an initiative of the Dubai Multi Commodities Centre and the World Gold Council and have been declared Shariah-compliant.

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.

How to trade on NASDAQ Dubai.

Derivatives volumes close to record high

Equity derivatives volumes totaled 20,490 in November, the second highest monthly total following the record of 21,330 reached in October.

A total of 110,927 equity derivatives have traded since NASDAQ Dubai launched its equity derivatives platform in November 2008, with 50% of the trades taking place in the last three months as the market has grown in maturity.

The platform consists of futures listed on 21 individual UAE companies and on the FTSE NASDAQ Dubai UAE 20 share index. These have been designed as hedging and investment mechanisms for GCC and international investors. The index stood at 1,859 at end-November, 49% higher than at end-2008, despite steep declines in October and November.

Index constituents are selected for high market capitalisation and liquidity as well as openness to foreign investment.

For the third month in a row, DFM was the most heavily traded futures contract by value in November. The second most traded was Emaar and third was Drake and Scull. By volume, the most traded contract in November was DFM, followed by Drake and Scull and then Emaar.

Equity futures trading – November 2009

US$ Futures Contracts Value (US$)
DPW 450 19,845
UAE Dirham Futures Contracts Value (AED)
DFM 10,260 2,232,735
EMAAR 4,200 1,765,340
DSI 4,500 436,500
SOROUH 400 132,380
SHUAA 480 92,880
DIB 200 57,558

Equities trading volumes increase in first 11 months of 2009

Equities trading volumes on NASDAQ Dubai rose to 2.68 billion shares in the first 11 months of 2009, up 20% from 2.24 billion reported in the same period of 2008.

In the month of November 2009, 152 million equities traded, a fall of 29% from the 213 million reported in October 2009 and of 52% from the November 2008 figure of 314 million.

The Exchange introduced mandatory reporting of all over the counter equities trades in September 2008.

To see all NASDAQ Dubai listed equities click here >

FTSE NASDAQ Dubai UAE 20 share index falls 15.5%

The index of 20 leading UAE stocks fell by 15.5% in November to 1,859, continuing a fall that began in October. Despite the decline, the index stood 49% higher at end-November than at end-2008. The UAE 20 index comprises DP World as well as 10 stocks on the DFM and 9 on the ADX. Its stocks are chosen for large market capitalisation and investability and are free float weighted. Futures contracts listed on the index by NASDAQ Dubai have been designed as a hedging and investment mechanism for GCC and international investors.

Read more about the constituents of the index here >

FTSE NASDAQ Dubai 'UAE 20' index

Members' Market Share

Citigroup Global Markets was the most active broker on the exchange by trading value in November, for the second month in a row.  Deutsche Bank was the second most active and HSBC third; Arqaam Capital was the most active regional Member.   

Market share, by value of all traded securities, November 2009:

Member Market Share (%)
Citigroup Global Markets 23.67
Deutsche Bank 22.13
HSBC  10.79
Morgan Stanley & Co International 5.87
Arqaam Capital 5.76
EFG Hermes 4.75
Shuaa Capital International 4.59
Mashreq Securities 4.45
Merrill Lynch international 4.16
ABN Amro Bank  3.06
Goldman Sachs International 3.05
Credit Suisse Securities (Europe) 2.94
Susquehanna International Securities 1.86
Emirates International Securities 1.01
DBFS (Mubasher) 0.91
UBS 0.6
MAC Capital 0.27
Emirates NBD Capital 0.09
Al Ramz 0.05
JP Morgan Securities  0.01

 

NASDAQ Dubai Academy

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

In the first quarter of 2010, NASDAQ Dubai Academy will give courses on (in Dubai unless otherwise stated):

  • Position Control (English)
    February, 2010 (in conjunction with SUNGARD)
  • Introduction to Financial Markets, Financial Public Relations and Investor Relations (KUWAIT)
    February, 2010 (in conjunction with FinanceTalking)
  • Introduction to Financial Results and Annual Reports (KUWAIT)
    February, 2010 (in conjunction with FinanceTalking)
  • Best Practice and Compliance in Financial Communications (KUWAIT)
    February, 2010 (in conjunction with FinanceTalking)
  • Equity Derivatives Trading (basic)
    March, 2010 (in conjunction with 7 City)
  • Equity Derivatives Trading (advanced)
    March, 2010 (in conjunction with 7 City)

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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