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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.

New York investor conference with DFM

NASDAQ Dubai and Dubai Financial Market (DFM) will jointly hold the “Borse Dubai International Investor Conference New York 2009” on November 2-3, in cooperation with Citigroup Global Markets and Goldman Sachs. Executives of 14 listed companies on the two exchanges will meet New York-based fund managers. Jeff Singer, CEO of NASDAQ Dubai, and Essa Kazim, Chairman of Borse Dubai and Chairman of DFM, will speak about the Dubai capital markets. Depa, DP World, Hikma and NetSol are among the listed companies scheduled to take part.  

Investors increasingly positive on NASDAQ Dubai stocks
A September monthly survey of investors by SHUAA Capital showed that 39.2% believe share prices on NASDAQ Dubai will rise over the next 6 months, up from 30.8% who believed the same thing in August. They were less optimistic about share prices on the London Stock Exchange and the New York Stock Exchange, the survey showed.

Equities trading volumes rise 48% in first 9 months of 2009

Equities trading volumes on NASDAQ Dubai rose by 48% to 2.32 billion shares in the first nine months of 2009, up from 1.57 billion reported in the same period of 2008.

In Q3 2009 a total of 565 million shares traded, up 18% from 479 million reported in the same period of 2008.

Equities volumes for the month of September 2009 reached 262 million. This was 50% higher than the 175 million reported in August 2009, and 9% below the 289 million reported in September 2008. September 2009 included Eid holidays when the exchange was closed.         

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

To see all NASDAQ Dubai listed equities click here >

Record derivatives trading in September

Equity derivatives trading volumes grew in September 2009 to a monthly record of 13,775 futures contracts, up 14% from the previous monthly record of 12,115 in August. A total of 69,137 futures contracts have traded 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 has been designed as a hedging and investment mechanism for GCC and international investors.

The index rose 80% from end-2008 to end-September 2009, to 2,241.

By value, the most traded contract in September was DFM. The second most traded was Arabtec and third was the FTSE NASDAQ Dubai UAE 20 index. The index comprises the 20 largest eligible UAE companies by market capitalization and its stocks are free float weighted to ensure that the index includes only investable companies.

By volume, the most traded contract in September was DFM, followed by RAK Properties and then Air Arabia.  

Equity futures trading – September 2009

US$ Futures Contracts Value (US$)
DPW 450 24,750
UAE 20 Index 5 98,750
UAE Dirham Futures Contracts Value (AED)
DFM 3,040 673,000
RAKPROP 3,020 241,200
AIRARABIA 2,070 225,800
ARTC 1,860 585,700
UPP 1,190 116,700
DANA 1,020 122,600
SHUAA 560 114,700
ADCB 220 58,600
AABAR 150 38,700
DIB 130 35,800
SOROUH 60 21,700

FTSE NASDAQ Dubai 'UAE 20' index rises 80%

The index of 20 leading UAE stocks rose by 80% from end-2008 to end-September 2009. The main Dubai Financial Market (DFM) and Abu Dhabi Securities Exchange (ADX) indices rose by just 34% and 31% respectively in the same period.

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 listed on the index by NASDAQ Dubai have been designed as a hedging and investment mechanism for GCC and international investors.

The index ended September at 2,241. This was its eighth consecutive monthly rise and 17% higher than at end-August, as UAE share prices continued their recovery.

Read more about the constituents of the index here >

FTSE NASDAQ Dubai 'UAE 20' index

Dubai Gold Securities

Trading of Dubai Gold Securities (DGS) increased strongly in September to 11,249 securities, up from 321 in August. Since listing in March 2009, a total of 38,940 DGS traded on the exchange up to the end of September. 

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.

Goldman Sachs becomes Member

NASDAQ Dubai welcomed Goldman Sachs International as a Member in September, bringing the number of exchange Members to 30. Goldman has joined from the regulatory jurisdiction of the UK and is a General Clearing Member (GCM), enabling it to clear trades on behalf of other Members as well as its own trades.

Members' Market Share

In its first month as a Member, Goldman Sachs was the third most active broker on the exchange by trading value. Deutsche Bank was the most active Member and HSBC was second.

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

Member Market Share (%)
Deutsche Bank 22.38
HSBC 16.2
Goldman Sachs International 11.06
EFG-Hermes 8.86
ABN Amro 8.57
JP Morgan Securities 8.31
Citigroup Global Markets 4.85
Morgan Stanley & Co International 3.92
Arqaam Capital  3.27
Shuaa Capital International 2.96
Merrill Lynch International 2.54
Mashreq Securities 2.48
Wood 1.26
SusqueHanna International Securities 0.85
Credit Suisse 0.73
DBFS (Mubasher) 0.73
Emirates NBD Capital 0.39
EIS 0.36
MAC Capital 0.17
UBS 0.06
Al Ramz 0.05

Appointment – Simon O’Brien

NASDAQ Dubai welcomes Simon O’Brien as its new Head of Listing Authority. Simon will assist companies in complying with the exchange’s listing rules before and after listing. Prior to joining the exchange he worked for the Dubai Financial Services Authority (DFSA) as a Senior Manager in the Markets Division, where he was involved with key NASDAQ Dubai listings. Previously he was a Senior Adviser at the Australian Stock Exchange’s Issuers Department (equivalent to its Listing Authority) with direct responsibility for over 70 listed entities. 

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 include:

  • Private Equity Valuation (English)
    October 21, 2009 (in conjunction with Genesis Institute)
  • Introduction to Bonds (English)
    November 4, 2009 (in conjunction with Genesis Institute)
  • Introduction to Financial Markets, Financial Public Relations and Investor Relations (English)
    November 9, 2009 (in conjunction with FinanceTalking)
  • Introduction to Financial Results and Annual Reports (English)
    November 10, 2009 (in conjunction with FinanceTalking)
  • Best Practice and Compliance in Financial Communications (English)
    November 11, 2009 (in conjunction with FinanceTalking)
  • Bond Valuation (English)
    November 18, 2009 (in conjunction with Genesis Institute)
  • Anti-Money Laundering  and Market Abuse (Arabic) (rescheduled from October 25)
    November 15, 2009 ((in conjunction with Total Solutions)
  • Compliance (Arabic) (rescheduled from October 26)
    November 16, 2009
  • Advanced Compliance Skills Workshop (Arabic)  (rescheduled from October 27)
    November 17, 2009

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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