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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.

Exchange Views
Jeff Singer, Chief Executive of NASDAQ Dubai, forecast that the financial crisis will lead to beneficial changes in the global derivatives industry in his monthly column Exchange Views, published in August in Gulf News and in Al Khaleej.

Investors positive on NASDAQ Dubai stocks – survey
An August monthly survey of investors by SHUAA Capital showed that 30.8% of investors believe share prices on NASDAQ Dubai will rise over the next 6 months, while 13.8% expect a fall. 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 80%

Equities trading volumes reached 175 million shares on NASDAQ Dubai in August, up 80% from 97 million reported in August 2008.

In the first eight months of 2009 trading reached 2.06 billion shares, up 71% from 1.2 billion reported in the same period of 2008.

Trading took place in August in three primary listings - DP World, Depa and Damas – and in Boulder Steel, whose primary market is the ASX in Australia.

NASDAQ Dubai introduced compulsory reporting of all over the counter trades in September 2008.

To see all NASDAQ Dubai listed equities click here >

Record derivatives trading in August

Derivatives volumes continued to grow in August with a record 12,115 futures contracts traded, up 37% from 8,845 in July. A total of 55,307 futures contracts have traded since NASDAQ Dubai launched its equity derivatives market in November 2008.

By value, the most traded contract in August was DP World. The second most traded was the FTSE NASDAQ Dubai UAE 20 share index, which was designed as a hedging and investment mechanism for GCC and international investors. The index has risen 54% from end-2008 to end-August 2009. It 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. They are also liquidity screened to ensure that the index is tradable.

The third most traded futures contract by value in August was Dana Gas, whose underlying shares are listed on the ADX. By volume, the most traded contract in August was DP World, followed by Air Arabia, whose underlying shares are listed on the DFM, and then Dana Gas.

Equity futures trading – August 2009

US$ Futures Contracts Value (US$)
DPW 2,800  106,000
UAE 20 Index 5  87,000
UAE Dirham Futures Contracts Value (AED)
AIRARABIA 2,760 282,000
DANA  2,450 284,000
DSI 1,000 85,000
RAKPROP 560 41,000
UPP 510 48,000
DIB 460 121,000
ARTC 380 108,000
SHUAA 360 63,000
DFM 300 55,000
SOROUH 260 80,000
EMAAR 170 56,000
ALDAR 160 70,000
NBAD 40 60,000

FTSE NASDAQ Dubai 'UAE 20' index
The index rose for the seventh consecutive month, reflecting the continued recovery in UAE share prices. It closed at 1,921 at end-August, 11% higher than at end-July and 54% higher than at end-2008. The index comprises DP World as well as 10 stocks on the Dubai Financial Market and 9 on the Abu Dhabi Securities Exchange.

Read more about the constituents of the index here >

FTSE NASDAQ Dubai 'UAE 20' index

Dubai Gold Securities

Morgan Stanley was accepted as an Approved Applicant for Dubai Gold Securities (DGS) in August, facilitating further activity in the securities. The agreement allows Morgan Stanley to create DGS by depositing the physical gold bullion that backs every security in issue with the custodian, HSBC. Morgan Stanley will also be able to redeem DGS and take physical delivery of the underlying bullion.

In August, 371 DGS traded on the exchange. Since DGS listed in March a total of 27,641 DGS have traded.

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.

New Member

NASDAQ Dubai is delighted to welcome Al Awael Securities, a broker based in Abu Dhabi, which became a Trading Member of the exchange in August. Al Awael Securities is active on the DFM and ADX and is a subsidiary of Al Awael Holding, whose Chairman is Talal Ali Mohammed Abbas Khoori. Al Awael Holding has offices across the Middle East in industries including real estate and engineering as well as finance. Al Awael Securities is the 6th broker to join NASDAQ Dubai directly from the regulatory jurisdiction of the UAE and brings the number of Members of the exchange to 29.

Members' Market Share

Deutsche Bank was the most active Member of the exchange in August by trading value in all types of security. EFG-Hermes was the second most active and Citigroup Global Markets third.

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

Member Market Share (%)
Deutsche Bank 25.42
EFG-Hermes 18.82
Citigroup Global Markets 12.02
Morgan Stanley & Co International 10.86
Merrill Lynch International 9.86
HSBC 6.93
JP Morgan Securities 5.22
DBFS (Mubasher) 2.42
Shuaa Capital International 2
Mashreq Securities 1.8
Credit Suisse 1.55
Arqaam Capital 1.27
SusqueHanna International Securities 1.15
Emirates NBD  Capital  0.29
UBS 0.2
Al Ramz 0.11
MAC Capital 0.09

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:

  • Advanced Compliance Skills Workshop - Parts I and II (English)
    September 29-30, 2009 (in conjunction with Total Solutions)
  • Introduction to Alternative Investments (English)
    October 8, 2009 (in conjunction with Genesis Institute)
  • Private Equity Valuation (in conjunction with Genesis Institute) (English)
    October 21, 2009
  • Introduction to Financial Markets, Financial Public Relations and Investor Relations (English)
    October 11, 2009 (in conjunction with Finance Talking)
  • Introduction to Financial Results and Annual Reports (English)
    October 12, 2009 (in conjunction with Finance Talking)
  • Introduction to Corporate Finance and Valuation (English)
    October 13, 2009 (in conjunction with Finance Talking)
  • Best Practice and Compliance in Financial Communications (English)
    October 14, 2009 (in conjunction with Finance Talking)
  • Anti-Money Laundering  and Market Abuse (Arabic)
    October 25, 2009
  • Compliance (Arabic)
    October 26, 2009
  • Advanced Compliance Skills Workshop (Arabic)  
    October 27, 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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