NASDAQ Dubai Monthly Trading Report: October 2010
Equities traded value rises 30% in October using DFM's trading platform
Three more brokers join NASDAQ Dubai to take advantage of expanded liquidity pool
The value of equities traded on NASDAQ Dubai increased by 30% to 155 million dollars in October 2010, from 119 million dollars in October 2009.
The increase comes after NASDAQ Dubai's outsourcing of its trading, settlement, clearing and custody functions for equities to Dubai Financial Market (DFM) in July 2010, as part of a strategy to increase trading of its equities by individual investors and merge them in one liquidity pool with institutional investors.
DP World, NASDAQ Dubai's largest listed company, was in the top 5 traded companies of all DFM and NASDAQ Dubai stocks by value on 71% of trading days in October 2010. It was the most highly traded on 14% of days.
NASDAQ Dubai was the best performing stock exchange in the UAE during the month, measured by percentage change of traded value from October 2009.
Jeff Singer, Chief Executive of NASDAQ Dubai, said: "Our traded value has increased every month since the outsourcing, as investors make use of the joint trading platform. In October three more UAE brokers joined the exchange to take advantage of the merger of our liquidity pool with DFM's."
The brokers are Al Dhabi Brokerage, Index Securities, and NAEEM Shares & Bonds. Their arrival raises the number of regional and international Members of NASDAQ Dubai to 34.
UAE brokers have increased their share of trading of NASDAQ Dubai equities since the outsourcing to DFM. In October, the most active broker by volume was Al Futtaim HC Securities, followed by Deutsche Bank and then EFG Hermes.
In the first 10 months of 2010, NASDAQ Dubai's equities traded value rose 31% to 1.1 billion dollars, from 840 million dollars in the same period of 2009.
The FTSE NASDAQ Dubai UAE 20 index rose in October 2010 to end the month at 1,874, up 6% from the end of September. Since the start of the year the index has gained 1%.
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.