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NASDAQ Dubai Monthly | October 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


  • Dubai Gold Securities (DGS) trading rises 1,280%
  • NASDAQ Dubai holds seminar about gold for brokers
  • Jafza and NASDAQ Dubai host capital-raising seminar for Jafza companies
Trading of Dubai Gold Securities rises 1,280%

Trading of Dubai Gold Securities (DGS) on NASDAQ Dubai reached 8,761 securities in the third quarter of 2011, an increase of 1,280% from the first two quarters of the year combined.

DGS closely track the spot price of gold and are structured products that can be traded on NASDAQ Dubai through a broker, just like equities. DGS are backed by gold in an HSBC bank vault and can be held without the inconvenience of holding physical gold.

NASDAQ Dubai outsourced the trading of DGS to the trading platform of Dubai Financial Market on October 10, 2011 in order to facilitate access by DFM’s retail investors. NASDAQ Dubai’s equities have traded successfully on DFM’s platform since July 2010.

The total value of DGS traded on NASDAQ Dubai reached 1.58 million dollars in the first nine months of 2011, up 65% from 958,000 dollars in the same period of 2010.

Click here for more details about DGS

Individual investors’ share of equities trading reaches 6.5%

Individual investors accounted for 6.5% of the traded value of all shares traded on NASDAQ Dubai in the first nine months of 2011. Total equities traded value in the period by individual and institutional investors was 541 million dollars. In September 2011, individual investors accounted for 3.8% of total equities traded value on NASDAQ Dubai, up from 3% in the previous month.

Total equities traded value on the exchange in September 2011 was 30 million dollars, down 59% from 73 million dollars in August 2011 and down 67% from 90 million dollars in September 2010.

Jafza-based companies explore ways to access capital markets at a seminar led by NASDAQ Dubai

Senior executives of prominent companies based in Jebel Ali Free Zone (Jafza) took part in the first of a series of ground-breaking seminars titled “Access Capital for Growth”, hosted by Jafza and NASDAQ Dubai. The seminar examined various ways for Jafza companies to access the capital markets.

Jeff Singer, Chief Executive Officer of NASDAQ Dubai, and a panel of other capital markets experts briefed the executives on a wide range of equity and debt capital-raising solutions, ranging from an initial public offering (IPO) to private equity and bank loans.

The executives represented companies in sectors including trading, metals, materials, food, electronics, energy and power.

The seminar was opened by Ibrahim Mohamed Al Janahi, Deputy CEO, Jafza and Chief Commercial Officer, as one of a series of initiatives under a Memorandum of Understanding (MoU) signed by Jafza and NASDAQ Dubai in April 2011. The MoU aims at identifying Jafza companies that wish to raise capital to expand and develop, including through a listing on the region’s international exchange, and provide them with information and support.

The panel of experts comprised Azhar Zafar, CEO of Ernst & Young Corporate Finance, Andrew Tarbuck, a partner at international law firm Latham & Watkins LLP, Karim Schoeib, Managing Director and Head of Investment Banking at SHUAA Capital psc, and Saqib Rashid, Principal of private equity firm Riyada Enterprise Development, a member of the Abraaj Group. Hussein Hachem, Chief Executive, Middle East & Africa, Aramex, addressed the seminar and shared Aramex's experience as a listed company, stressing the importance of transparency and reputation.

Click here for Press release
Gold Seminar

Senior representatives of 20 leading UAE brokers attended a NASDAQ Dubai seminar that explained opportunities for individuals and institutions to invest in gold.

Capitalising on the growth of gold as an asset class, the seminar on October 17 held at Dubai Financial Market illustrated how gold can be used in a balanced portfolio to offer diversification away from traditional securities such as stocks. DGS is an initiative of Dubai Multi-Commodities Centre Authority (DMCC). Ahmed Bin Sulayem, Executive Chairman, DMCC, said: “DMCC has launched DGS as part of its initiatives aimed to promote gold trade through Dubai. DGS provides the only listed opportunity in the GCC countries to trade gold close to its spot price, without having to hold it physically.” Brokers at the seminar included Members of NASDAQ Dubai, DFM, Abu Dhabi Securities Exchange, and DGCX. NASDAQ Dubai’s presentation was delivered by Craig Hewett, Head of Business Development.

Gerry Schubert, Head of Precious Metals, Emirates NBD, presented an analysis of gold price movements at the seminar. Thomson Reuters demonstrated real time correlations of the gold price with other asset classes.

Click here for Press release
NASDAQ Dubai is recruiting

The exchange is seeking a Business Development Manager to expand revenues and product portfolios. The role includes a focus on the sales activity of the non-cash (equity) business across volume growth and membership sales. This will require strategic thinking and a holistic approach to the development of the exchange with a sound understanding of the MENA market. The successful candidate will report to the Head of Business Development and have at least three years MENA capital markets experience, with a dynamic and creative approach to business expansion.

Applicants should contact Aneka Sharma, Human Capital Manager, at aneka.sharma@nasdaqdubai.com

FTSE NASDAQ Dubai UAE 20 share index falls 5% in September

The FTSE NASDAQ Dubai UAE 20 index ended September at 1,465, down 5% from the end of August and down 19% from the end of 2010. 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 >

Market share by value of all equities traded – September 2011
10 most active Members Market Share %
Al Futtaim HC 27.8
Arqaam Securities 27.2
Deutsche Bank 16.0
EFG Hermes Brokerage UAE 11.2
DBFS (Mubasher) 5.9
Emirates NBD Securities 4.5
Shuaa Securities 3.3
Mashreq Securities 1.8
Al Ramz 1.0
Citigroup 1.0