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NASDAQ Dubai Monthly | May 2010 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


  • Equities values rise 100% in first four months of 2010
  • NASDAQ Dubai to give a month’s notice of consolidation with DFM
  • Most active Members in April: Citigroup, Deutsche, Credit Suisse

 
Equities trading values rise 100%

Equities trading value on NASDAQ Dubai rose by 100% in the first four months of 2010 to 574 million dollars, compared to 286 million dollars in the same period of 2009.

The rise largely reflected an increase in the share price of DP World. Equities volumes rose by 2% in the same period, to 1.26 billion shares.

Measured by percentage change, NASDAQ Dubai’s equity value and volume figures were the best performing of any UAE stock exchange in the first four months of 2010.

Equities value traded in the month of April 2010 rose by 83%, reaching 94 million dollars, compared to 51 million dollars in April 2009. Equities volumes in April 2010 were 168 million, 15% lower than the 198 million in April 2009. The April value and volume figures were also the strongest of any UAE exchange, measured by percentage change.

Citigroup was the most active Member of the exchange by equities volume in the first four months of 2010, followed by Deutsche Bank and then HSBC. EFG Hermes was the most active regional Member, followed by Shuaa Capital and then Arqaam Capital.

Derivatives trading rises in 2010

Equity derivatives contracts traded on NASDAQ Dubai rose 29% in the first four months of 2010 to 19,210, up 29% from 14,867 traded in the first four months of 2009.

In April 2010 equity derivatives trading reached 2,100 contracts, down 72% from 7,575 contracts in April 2009.

A total of 144,277 contracts traded up to end-April 2010 since NASDAQ Dubai launched its equity derivatives market in November 2008.

Equity futures are listed on 21 individual UAE companies and on the FTSE Nasdaq Dubai UAE 20 share index, which was designed as a hedging and investment mechanism for GCC and international investors.

Consolidation with DFM

NASDAQ Dubai is focussing on obtaining regulatory approval for its planned outsourcing of trading, clearing, settlement and custody functions for equities to DFM. The ‘go live’ date will be at least one calendar month after such approval is received, so that Members and market participants have adequate time to prepare. Latest details of the consolidation can be viewed here including three explanatory documents sent to market participants since April 1. The outsourcing is designed to make it easier for UAE retail investors to trade NASDAQ Dubai equities, improving their liquidity.

Questions can be sent to the NASDAQ Dubai Consolidation Web Desk here.

Exchange Views

In his latest monthly column, Jeff Singer, Chief Executive of NASDAQ Dubai, argued that many companies have been focusing too much on shareholder value. They would achieve greater success by emphasising customer satisfaction and seeking long-term growth. The Exchange Views column was published in Gulf News and in Al Khaleej.

 
Equity futures trading – April 2010
UAE Dirham Futures Contracts Value (AED)  
SOROUH 2,100 549,045  
 
FTSE NASDAQ Dubai UAE 20 share index falls 3.5% in April

The FTSE Nasdaq Dubai UAE 20 index fell in April 2010 to end the month at 1,900. This was down 3.5% from the end of March, but 2.5% higher than at the start of the year. The 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 >

 
Members Market Share

Citigroup Global Markets was the most active Member of the exchange by value of all traded instruments in April 2010, followed by Deutsche Bank and then Credit Suisse. EFG Hermes was the most active regional Member, followed by Emirates NBD Capital and then SHUAA Capital.

Market share, by value of all traded securities – March 2010
Member Market Share %
Citigroup 24.60%
Deutsche Bank 23.35%
Credit Suisse 7.87%
EFG Hermes 7.22%
HSBC 7.21%
Emirates NBD Capital  5.78%
Goldman Sachs 5.44%
Shuaa Capital 3.65%
Merrill Lynch 3.30%
Arqaam Capital 2.82%
Morgan Stanley 2.50%
NBD 1.94%
Mubasher 1.45%
Union Brokerage Ltd 1.07%
Mashreq Securities 0.71%
MAC Capital 0.42%
JP Morgan 0.40%
Al Ramz 0.16%
UBS 0.12%
 
NASDAQ Dubai Academy

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

Scheduled courses (in English and in Dubai unless otherwise stated):

  • Introduction to Financial Markets, Financial Public Relations and Investor Relations
    May 23, 2010 (in conjunction with FinanceTalking)
  • Introduction to Financial Results and Annual Reports
    May 24, 2010 (in conjunction with FinanceTalking)
  • Best Practice and Compliance in Financial Communications
    May 25, 2010 (in conjunction with FinanceTalking)
  • Understanding Debt Markets and Debt IR
    May 26, 2010 (in conjunction with FinanceTalking)

Sign up for NASDAQ Dubai Academy courses here.