NASDAQ Dubai Monthly newsletter / December 2010: Equities traded value up 37% in November and 32% year-to-date
 
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NASDAQ Dubai Monthly | March 2011 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.

SUMMARY


  • Exchange welcomes public comment on new listing rules
  • Traded value reaches 71 million dollars in February
 
Exchange gathers market views on its plans to promote liquidity and list SMEs

NASDAQ Dubai has been discussing its proposed new listing rules with bankers, lawyers and other IPO advisors, as well as potential issuers. Lanae Holbrook, the exchange's General Counsel, and her team have held dozens of one-on-one meetings in the past month and addressed a packed seminar on the proposals hosted by law firm Latham & Watkins in the DIFC on February 22. The exchange is continuing to accept public comment on its proposals for a short period beyond its previously announced March 17 deadline.

The proposals, announced in January, would promote liquidity by ensuring that all IPOs attract a broad investor base, through either a minimum 10% retail tranche or at least 400 retail or institutional investors.

The new rules would also attract small and medium enterprises (SMEs) and family companies by introducing flexible listing criteria. The existing minimum market capitalisation of 50 million dollars would be retained; in addition, companies could list with a market capitalisation as low as 20 million dollars, with a one-year lock-in. Companies could IPO without a market capitalisation test if they meet specific criteria of profitability or assets. In addition, all IPO prospectuses would be filed with Dubai Financial Services Authority.

Rule changes would also strengthen NASDAQ Dubai's framework for listing exchange traded funds, Real Estate Investment Trusts, exchange traded commodities and Sharia securities, as well as debt.
The proposed listing rules can be viewed in detail here and public comments can be sent to listing.authority@nasdaqdubai.com

Equities traded value reaches $71 million in February

The value of shares traded on NASDAQ Dubai reached 71 million dollars in February 2011, up 50% from 47.1 million dollars in January. Traded value in February 2010 was 133.4 million dollars.

The share of trading by retail investors in February 2011 reached 5.5% of total traded value. Institutional investors accounted for 94.5%.

The retail share rose from 2% of total traded value in August 2010, which was the first full month of trading after NASDAQ Dubai started routing all its equities trades through the trading platform of Dubai Financial Market (DFM) in mid-July.

The value of retail trades on NASDAQ Dubai rose from 1.6 million dollars in August 2010 to 3.9 million dollars in February 2011. The retail share in January 2011 was 13%, with a value of 6 million dollars.

Jeff Singer, Chief Executive of NASDAQ Dubai, said: "In a challenging period for Middle East capital markets, the increase in retail trading in 2011 from last year indicates that the switch to DFM's platform has succeeded in attracting more retail investors to NASDAQ Dubai's market. We look forward to building further retail and institutional liquidity."

Seven regional brokers became Members of NASDAQ Dubai in 2010 to take advantage of the new trading regime, bringing the total number of Members to 35 international and regional brokers.

Head of Listing

Vanessa Abernethy, a partner at law firm Simmons & Simmons in Dubai, has joined NASDAQ Dubai on secondment as acting Head of Listing Authority. She brings 14 years of capital markets experience to the role and has worked closely with NASDAQ Dubai on a variety of listing and other matters since the exchange opened in 2005.

NASDAQ Dubai is seeking a permanent Head of Listing Authority. The successful candidate will work closely with current and potential issuers and Dubai Financial Services Authority. Applicants will ideally come from a listing, regulatory or audit background.

To apply please visit http://www.nasdaqdubai.com/careers

 

FTSE NASDAQ Dubai UAE 20 share index falls 9% in February

The FTSE NASDAQ Dubai UAE 20 index ended February 2011 at 1,508, down 9% from the end of January and 16% lower than at the start of the year.  The index tracks 20 stocks listed on DFM, the Abu Dhabi Securities Exchange and NASDAQ Dubai. The stocks are chosen for high liquidity and openness to foreign investment

Read more about the constituents of the index here >

 
Members Market Share

Shuaa  Securities was the most active Member of the exchange by traded value in February 2011, followed by Al Futtaim HC and Arqaam Securities.

Market share, by value of all traded instruments – February 2011
Member Market Share %
Shuaa Securities    39.0  
Al Futtaim HC 19.7  
Arqaam Securities 13.3  
Deutsche Bank 11.7  
EFG Hermes UAE 10.4  
DBFS (Mubasher) 1.8  
Al Ramz 1.4  
Mashreq Securities 1.0  
Emirates NBD Securities 0.7  
Citigroup Global Markets 0.6  
Al Dhabi Brokerage 0.3  
Union Brokerage 0.1  
Index Securities 0.1  
UBS 0.1  
Naeem Shares & Bonds 0.1