If the newsletter is not displaying correctly, click here to read it online

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




Newspaper Column
Jeff Singer, Chief Executive of NASDAQ Dubai, discussed the outlook for the global economy in his latest monthly column, Exchange Views, in Gulf News and Al Khaleej.
Dubai Gold Securities
Trading volumes in Dubai Gold Securities (DGS) rose to 12,844 in May, 41% more than the previous two months combined.

Since DGS listed on March 2, the price of the securities has hit a closing high of 98.47 dollars and a low of 88.5 dollars, before closing at 94.55 dollars on May 31. 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.

A NASDAQ Dubai Academy workshop on June 25 will include an overview of DGS as part of an introduction to exchange-traded funds and exchange-traded commodities. See Academy below.


Derivatives
Equities futures trading volumes rose again in May to 8,110 contracts, up from 7,575 in April. A total of 23,032 contracts have traded since the market launched in November 2008, 97.7% of that volume coming since March 1 as the market has gained traction.

By volume, the most heavily traded futures contracts in May were DP World followed by Dana Gas and then Union Properties. By value, Sorouh contracts were the most heavily traded, followed by Dana Gas and then Emaar.

Equity futures trading – May 2009

Contracts Value ($ or $ equivalent)
DPW 2,950 97,945
DANA 1,530 156,672
UPP 850 72,640
SOROUH 600 176,400
SHUAA 600 82,514
EMAAR 510 132,175
DFM 360 52,236
ALDAR 320 125,680
RAKPROP 280 17,220
ARTC 80 19,140
FGB 20 23,400
GCEM 10 2,485

Equity Options

NASDAQ Dubai has introduced a UAE equity options service, in response to demand and in order to broaden our derivatives market. Members are now able to report, trade and clear user-defined option contracts on NASDAQ Dubai, with the price and expiry date agreed by the parties to the contracts.

Bringing equity options on-exchange is a step forward for risk management and transparency in the region’s capital markets. It can reduce the risk of default because the exchange will act as central counterparty to every trade, ensuring that the obligations of both parties will be met.


Equities

Trading volumes in May rose to 331.3 million shares, 67% higher than the April figure of 198 million. Trading took place in three primary listings - DP World, Depa and Damas – and two secondary listings, Boulder Steel and China Securities and Surveillance Technology (CSST).

Boulder Steel’s primary market is the ASX in Australia and CSST’s primary listing is on the New York Stock Exchange. Volumes in Boulder Steel rose to 1.9 million shares in May, higher than the four previous months combined (1.86 million).

FTSE NASDAQ Dubai 'UAE 20' index
The index, a benchmark that includes shares from all 3 UAE stock exchanges, rose 13.9% in May to close at 1,473.53. This was its fourth consecutive monthly increase, putting the index 18.0% higher than at the start of the year. 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

The share price of DP World, the most heavily traded stock, was 38.6 cents at the end of May, up from 27 cents at the end of April and more than double its price of 19 cents at the end of February.

Total trading of all shares on NASDAQ Dubai in 2009 reached 1.568 billion securities by the end of May.

To see all NASDAQ Dubai listed equities click here >

Investor Relations Survey

NASDAQ Dubai will shortly conduct a survey of the Investor Relations (IR) needs of issuers listed on its market and on other UAE exchanges. The anonymous survey will ask companies what types of IR services they provide, or wish to provide, and what types of IR training they may require.

The results of the survey will help NASDAQ Dubai to support the growth of IR services in the region, in the interests of issuer companies and investors. For details of a NASDAQ Dubai course about IR, see Academy below.

Appointment

NASDAQ Dubai welcomes Issa Chami as Membership Manager. Issa has joined from Al Ramz Securities, where he worked in Abu Dhabi on the institutional desk as a sales trader/trader. Earlier he was a financial advisor for Merrill Lynch (Global Private Wealth) in San Diego, California. He graduated from Mercy College, New York, with a BSc in Mathematics. As part of the Membership team, Issa will liaise with and assist current and prospective Members of NASDAQ Dubai.


Members' Market Share


Deutsche Bank was the most active Member of the exchange in May by trading value in all types of security, followed by Citigroup. Shuaa Capital was again the most active regional Member over the month.

Market share, by value of all traded securities, May 2009:
Member Market Share
 Deutsche Bank 30.39%
 Citigroup Global Markets 21.19%
 Wood & Co 11.31%
 HSBC 9.26%
 Shuaa Capital International 5.70%
 EFG-Hermes UAE 4.39%
 JP Morgan Securities 3.63%
Credit Suisse Securities (Europe) 2.34%
 Merrill Lynch International 1.82%
 Mashreq Securities 1.79%
 Morgan Stanley & Co International  1.70%
 Al Ramz Securities 1.66%
 UBS 1.58%
 DBFS (Mubasher) 1.48%
 Emirates NBD Capital 0.57%
 Susquehanna International Securities 0.40%
 Arqaam Capital 0.40%
 MAC Capital 0.34%
 Daman Securities International 0.05%
Total 100.00%


NASDAQ Dubai Academy

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

In May, 56 brokers and other market participants attended Academy courses on derivatives. These were created jointly with Arqaam Capital, a Trading Member of the exchange, and were delivered in English and Arabic. Sixteen journalists attended media seminars on derivatives.

NASDAQ Dubai Academy

Equity Derivatives Basic – June 4
Aimed at market professionals, this two-hour session focuses on the structure of derivatives as well as how to evaluate and price them. Delivered jointly with Arqaam Capital.

Risk Management and Cross Asset Trading – June 7
This two-hour session identifies the requirements of a true cross-asset trading system, looking at market trends, highlighting the demands placed on systems and addressing the support needed for executing trading strategies. Delivered jointly with SunGard.

Trading Managers Course and Examination – June 15
For traders and trading managers who will be involved in trading NASDAQ Dubai products. The course will be followed by an examination on June 30.

Options Advanced – June 18
This course explains the pricing and the hedging of options with a focus on realistic situations and realistic market limitations. Delivered jointly with Arqaam Capital.

Securities Analysis – Part I and II
This course is aimed at advisors, portfolio managers and investors interested in equity research and active portfolio management.

Part I: Fundamental Analysis - June 24
Participants will learn to understand financial statements, to forecast and value companies and their shares and to integrate fundamental analysis with other decision making tools.

Part II: Technical Analysis - June 30
Participants will learn about the Efficient Market Theory and how it is applied to investment decisions. They will understand and learn to apply and interpret the most used technical indicators, to perform back testing for decision making and to integrate technical analysis with fundamental analysis and other decision making tools.

Exchange Traded Funds and Exchange Traded Commodities – June 25
This workshop introduces ETFs and ETCS. It discusses their structure and how they are traded and concludes with an overview of Dubai Gold Securities, listed on NASDAQ Dubai – the only listed ETC in the region. Delivered jointly with Dubai Commodities Asset Management (DCAM).

Introduction to Financial Markets, Financial Public Relations and Investor Relations – June 30
For those getting started in financial PR or IR and who need to understand financial markets and audiences.

Best Practice and Compliance in Financial Communications – July 1
This course explains the rules, regulations and best practices across investor, analyst and media communications.

Sign up for NASDAQ Dubai Academy courses


See www.nasdaqdubai.com for more information about our market or call +971 4 361 2222.
We welcome your comments on our website. Click here
Should you wish not to receive our Newsletter click here to unsubscribe