Retail investors increase share of NASDAQ Dubai equities trading to 13%
Retail investors increased their share of equities trading on Nasdaq Dubai to 13% of total traded value in January 2011. Institutional investors accounted for 87%.
The retail share rose from 2% in August 2010, which was the first full month of trading after Nasdaq Dubai started routing all its equities trades through the trading platform of Dubai Financial Market (DFM) in mid-July. In the second week of January 2011, the retail share of trading rose as high as 26%.
The value of retail trades on Nasdaq Dubai also rose, from $1.6m in August 2010 to $6m in January 2011.
Jeff Singer, Chief Executive of Nasdaq Dubai, said: "The growth in retail trading indicates that the switch to DFM's platform has succeeded in attracting more retail investors to Nasdaq Dubai's market. Retail investors now trade on both exchanges in the same way, using the same Investor Number. A healthy mix of retail and institutional trading encourages greater liquidity and promotes Dubai's expansion as a leading capital markets hub."
Seven regional brokers became Members of Nasdaq Dubai in 2010 to take advantage of the new trading regime, bringing the total number of Members to 35 international and regional brokers.
The increase in retail trading was achieved in spite of a decline in total traded value by all investors from $78.7m in August 2010 to $47.1m in January 2011, in a challenging period for capital markets across the region.
The FTSE Nasdaq Dubai UAE 20 index ended January 2011 at 1,656, down 8% from the end of December 2010.
The index tracks 20 liquid stocks listed on DFM, the Abu Dhabi Securities Exchange and Nasdaq Dubai. It has been designed as a hedging and investment mechanism for GCC and international investors.