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NASDAQ Dubai Monthly | September 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


  • Equities traded value increases 20% in first full month after outsourcing to DFM
  • UAE broker Al Futtaim HC is most active Member in August
  • Equities traded value rises 46% in first eight months of 2010
 
Trading activity increases after outsourcing to DFM

The value of equities traded on NASDAQ Dubai rose by 20%  in August 2010 from the same period in 2009.  It was the first full month of trading since the exchange outsourced its operations to Dubai Financial Market (DFM) on July 11, 2010.

The August value reached 78.7 million dollars, up from 65.5 million. The proportion traded by individual investors, as opposed to institutions, also increased. Volume for the month fell by  9% to 158.6 million shares, from 175.2 million in the same 2009 period.

DP World was the second most highly traded stock by value in August of all DFM and NASDAQ Dubai stocks.  By volume, it was the third most higly traded.

NASDAQ Dubai outsourced its trading, settlement, clearing and custody functions for equities to DFM on 11 July, 2010, as part of a strategy to increase trading of its equities by attracting more individual investors and bringing them together in one liquidity pool with institutional investors.

Traded value rises in first eight months of 2010

In the first eight months of 2010, traded value of NASDAQ Dubai equities rose to 858 million dollars from 587 million in the same period of 2009, an increase of 46%. Volume fell to 1.9 billion in the same period from 2.1 billion, adecrease of 14%.

Measured by percentage change, this was the strongest performance by any UAE stock exchange over the eight-month period.

Exchange Views

In his latest monthly column, Jeff Singer, Chief Executive of NASDAQ Dubai, argued that fundamental changes are needed to revive trading activity on the UAE’s stock markets. These should include introducing shorting mechanisms, meeting the MSCI criteria for Emerging Markets status, and further increasing an atmosphere of trust in the capital markets. The Exchange Views column was published in Gulf News and Al Khaleej

 
FTSE NASDAQ Dubai UAE 20 share index falls 3.5% in August

The FTSE Nasdaq Dubai UAE 20 index ended August 2010 at 1,550, down 3.5% from the end of July 2010 and 16% lower than at the start of the year. 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 August, Al Futtaim HC was the most active Member of the exchange by traded value. Deutsche Bank was second, followed by EFG Hermes.

Market share, by value of all traded instruments – August 2010
Member Market Share %
Al Futtaim HC 34.1
Deutsche Bank 22.1
EFG Hermes Brokerage UAE LLC 16.2
Arqaam Capital 11.1
SHUAA Capital 6.4
SHUAA Securities 2.7
Mubasher 1.9
Wood 1.9
Emirates NBD Securities 1.3
Mashreq Securities 1.0
UBS 0.5
Citigroup 0.4
MAC Capital 0.2
Al Ramz 0.2
 
NASDAQ Dubai Academy

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

The Academy is preparing training courses on Anti-Money Laundering, Compliance and Market Abuse. Dates will be announced in our next newsletter.

Sign up for NASDAQ Dubai Academy courses here.