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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.



NASDAQ Dubai’s equity derivatives win FOW innovation Award

NASDAQ Dubai's equity derivatives market has won the Futures & Options World (FOW) 2009 Award for "Best innovation by an exchange in product design, Middle East." UK-based FOW said: "Pushing ahead with the launch amid the worst (global) recession for decades, and when some in the industry voiced doubts, is to be applauded. The resulting platform offers greater risk management scope for investors in the region, at a time of extreme market volatility." Jeff Singer, Chief Executive of NASDAQ Dubai, said: "FOW is a leading opinion former in the derivatives industry and we are delighted to be recognised by its Award. Our derivatives offer hedging opportunities for regional and international investors."

Read press release



Emirates International Securities becomes Member of NASDAQ Dubai

Dubai-based Emirates International Securities (EIS) announced in October that it has become the newest Member of NASDAQ Dubai, linking thousands of investors to the exchange. EIS is one of the largest UAE brokers and is a subsidiary of Emirates NBD, the largest banking group in the Middle East by assets. Hamood Abdulla Al Yasi, General Manager of EIS, said "NASDAQ Dubai is achieving an increasingly prominent position in the region's capital markets, through the growing range of its listed securities, its accessibility to regional and international investors and its promotion of world class transparency and governance standards."

Read press release


Exchange Views
In his latest monthly column Jeff Singer, Chief Executive of NASDAQ Dubai, looked at the positive impact of FTSE's upgrading of the UAE to 'secondary emerging market'  status. The Exchange Views column was published in Gulf News and in Al Khaleej.


Investors maintain bullish view on NASDAQ Dubai stocks

An October monthly survey of investors by SHUAA Capital showed that 35.3% believe share prices on NASDAQ Dubai will rise over the next 6 months, compared to 13.7% expecting a fall. This is a positive balance of 21.6%, the same percentage as in the Septmber survey and a rise from 17% in August.

IFC lists landmark Sukuk on NASDAQ Dubai

The International Finance Corporation (IFC), a member of the World Bank Group, announced in October that it was issuing its first Sukuk and listing it on NASDAQ Dubai.

Speaking at a press conference held at the exchange, Nina Shapiro, Vice President, Finance and Treasurer of the IFC, explained that the $100 million issue would help to develop the region’s Sukuk market for infrastructure financing and would encourage other sovereign and corporate issuers to launch Sukuk in the region. It is the first Sukuk to be issued by a non-Islamic financial institution for term funding in the GCC..

The listing brings the number of Sukuk listed on NASDAQ Dubai to 21 with a nominal value of $16.7 billion, larger than the value listed on any other exchange.

The securities of IFC’s Sukuk are the first to be held on NASDAQ Dubai’s central securities depositary, which provides securities holders with an efficient and streamlined service.

Read the press release >

Derivatives volumes hit new record in October

A monthly record of 21,330 equity derivatives traded on NASDAQ Dubai in October, maintaining an upward trend that has continued throughout the year. The figure was 55% higher than the previous record of 13,775 in September.

By end-October a total of 90,467 derivatives had traded since NASDAQ Dubai launched the market in November 2008, with 52% of these traded in the latest three months.

The market 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 rose 76% from end-2008 to end-October 2009, to 2,201.

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

By value, the most traded contract in October was DFM. The second most traded was Emaar and third was the FTSE NASDAQ Dubai UAE 20 index, which comprises the 20 largest eligible UAE companies by market capitalisation. By volume, the most traded contract in October was DFM, followed by Drake and Scull and then Emaar.

Equity futures trading – October 2009

US$ Futures Contracts Value (US$)
UAE 20 Index 10 228,570
DPW 450 24,030
UAE Dirham Futures Contracts Value (AED)
DFM 5,690 1,413,980
EMAAR 2,100 953,175
DSI 5,500 620,000
ARTC 1,080 381,700
DANA 1,530 195,330
AIRARABIA 1,380 163,392
RAKPROP 1,810 154,884
ALDAR 160 104,160
DIB 300 101,590
SOROUH 200 81,800
DIC 400 55,400
SHUAA 240 50,760
AABAR 150 40,275
ARMX 170 32,300
UPP 170 20,009

Equities trading volumes increase in first 10 months of 2009

Equities trading volumes on NASDAQ Dubai rose to 2.53 billion shares in the first 10 months of 2009, up 32% from 1.92 billion reported in the same period of 2008.

In the month of October 2009, 213 million equities traded, a fall of 39% from the 350 million reported in October 2008 and 19% down from 262 million in September 2009.

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

To see all NASDAQ Dubai listed equities click here >

Dubai Gold Securities

A total of 1,273 Dubai Gold Securities (DGS) traded on the exchange in October, compared to 11,249 the previous month. Since listing in March 2009, a total of 40,213 DGS traded on the exchange up to the end of October.  

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

FTSE NASDAQ Dubai UAE 20 share index falls 7%

The index of 20 leading UAE stocks fell by 7% in October to 2,201 as a long rally in share prices halted. Despite the decline, the index stood 76% higher at end-October 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 created 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

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.

Investor evening – MAC Capital and Dubai Share Talk

More than 35 clients of MAC Capital and members of dubaisharetalk.com, a forum for individual investors, attended a presentation on fundamental and technical analysis, as well as forex trading. The presentation was given at NASDAQ Dubai by experts from MAC Capital, one of the exchange's brokers. The October 12 event was the third investor evening hosted by the exchange this year.

Members' Market Share

Citigroup Global Markets was the most active broker on the exchange by trading value in October. Deutsche Bank was the second most active and HSBC third; Mashreq Securities was the most active regional Member.   

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

Member Market Share (%)
Citigroup Global Markets 27.82
Deutsche Bank 21.05
Merrill Lynch international 20.13
Mashreq Securities 7.77
EFG Hermes 5.43
HSBC 4.62
Shuaa Capital International 2.98
Arqaam Capital 2.55
Goldman Sachs International  1.75
Susquehanna International Securities 1.69
Emirates International Securities 1.04
Morgan Stanley & Co International 0.97
UBS 0.81
DBFS (Mubasher) 0.71
Credit Suisse 0.38
Emirates NBD Capital 0.12
MAC Capital 0.08
Al Ramz 0.06
Wood & Co 0.04
Al Awael Securities 0.02

 

NASDAQ Dubai Academy

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

Courses scheduled to the end of 2009 include (in Dubai unless otherwise stated):

  • Introduction to Financial Markets, Financial Public Relations and Investor Relations (English) (KUWAIT)
    December 13, 2009 (in conjunction with FinanceTalking)
  • Introduction to Financial Results and Annual Reports (English) (KUWAIT)
    December 14, 2009 (in conjunction with FinanceTalking)
  • Introduction to Corporate Finance & Valuation (English) (KUWAIT)
    December 15, 2009 (in conjunction with FinanceTalking)
  • Best Practice and Compliance in Financial Communications (English) (KUWAIT)
    December 16, 2009 (in conjunction with FinanceTalking)

The following courses were held in November:

  • Introduction to Bonds (English)
    (in conjunction with Genesis Institute) (English)
  • Introduction to Financial Markets, Financial Public Relations and Investor Relations (English)
    (in conjunction with FinanceTalking)
  • Introduction to Financial Results and Annual Reports (English)
    (in conjunction with FinanceTalking)
  • Best Practice and Compliance in Financial Communications (English)
    (in conjunction with FinanceTalking)
  • Anti-Money Laundering and Market Abuse (Arabic)
    November 15, 2009 (in conjunction with Total Solutions)
  • Compliance (Arabic)
    November 16, 2009
  • Advanced Compliance Skills Workshop (Arabic)
    November 17, 2009 (in conjunction with Total Solutions)

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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