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NASDAQ Dubai Monthly | November 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


  • Axiom Limited announces IPO
  • Equities traded value rises 30% in October
  • Three new UAE Members join NASDAQ Dubai
  • UAE broker Al Futtaim HC is most active Member for fourth month in a row
 

Axiom announces Dubai’s first IPO since 2008

                                                                       
Axiom Limited has announced it plans to IPO on NASDAQ Dubai in December 2010. The institutional offer is Dubai’s first initial public offering since 2008.

The announcement comes after NASDAQ Dubai successfully outsourced its trading, settlement, clearing and custody functions for equities to Dubai Financial Market (DFM) in July 2010, as part of a strategy to merge DFM’s individual investors into one liquidity pool with NASDAQ Dubai’s institutional investors.

Axiom announced a price range of $0.80 to $1.15, implying a market capitalization of between $760 million and $1.093 billion. Up to 35% of Axiom’s issue shares are to be offered.

Jeff Singer, Chief Executive of NASDAQ Dubai, said: “This IPO by a prominent regional retailer supports the momentum that the exchange has achieved since its outsourcing to DFM. Issuers on NASDAQ Dubai now have access to a liquidity pool of institutional investors from around the world and DFM’s more than 500,000 retail investors.

“They also have the benefit of a bookbuild valuation process, a free float of as little as 25%, and regulation to international standards.”

Equities traded value rises 30% in October 2010

                                                                       
The value of equities traded on NASDAQ Dubai increased by 30% to 155 million dollars  in October 2010, from 119 million dollars in October 2009.  

DP World, NASDAQ Dubai’s largest listed company, was in the top 5 traded companies of all DFM and NASDAQ Dubai stocks by value on 71% of trading days in October 2010. It was the most highly traded on 14% of days.

NASDAQ Dubai was the best performing stock exchange in the UAE during the month, measured by percentage change of traded value from October 2009.

Traded value on NASDAQ Dubai has risen every month since the outsourcing to DFM took place in July.  

In the first 10 months of 2010, NASDAQ Dubai’s equities traded value rose 31% to 1.1 billion dollars, from 840 million dollars in the same period of 2009.

NASDAQ Dubai welcomes three new Members

Three more UAE brokers joined NASDAQ Dubai in October to take advantage of the merger of its liquidity pool with DFM:

Al Dhabi Brokerage
Individual Clearing Member

Index Securities
Individual Clearing Member

NAEEM Shares & Bonds
Individual Clearing Member

This raises the number of NASDAQ Dubai Members to  34.

 

FTSE NASDAQ Dubai UAE 20 share index rises 6% in October

The FTSE NASDAQ Dubai UAE 20 index ended October 2010 at 1,874, up 6% from the end of September as UAE share prices continued to rise. 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

UAE brokers have increased their share of trading on NASDAQ Dubai since the outsourcing to DFM in July 2010. In October, Al Futtaim HC was the most active Member of the exchange by traded value for the fourth successive month. Deutsche Bank was second, followed by EFG Hermes.

Market share, by value of all traded instruments – October 2010

Member Market Share %
Al Futtaim HC 35.1  
Deutsche Bank 28.2  
EFG Hermes Brokerage UAE 10.7  
Arqaam Securities 9.2  
SHUAA Capital 7.4  
Mubasher 3.0  
Emirates NBD Securities 1.8  
Citigroup 1.6  
Mashreq Securities 0.9  
SHUAA Securities 0.8  
Union Brokerage Company 0.5  
Wood 0.5  
Al Ramz 0.1  
MAC Capital 0.1  
Al Dhabi Brokerage 0.1  
UBS 0.1  
 
NASDAQ Dubai Academy

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

Details of upcoming courses will be provided in the next newsletter.

Sign up for NASDAQ Dubai Academy courses here.