NASDAQ Dubai Monthly Trading Report: September 2010
Equities traded value rises 31% in first nine months of 2010
The value of equities traded on NASDAQ Dubai increased by 31% in the first nine months of 2010 compared to the same period in 2009, from USD722 million to USD948 million.
Volume fell by 13% from 2.32 billion shares to 2.02 billion. For both value and volume, this was the strongest performance by any UAE stock exchange over the nine-month period, measured by percentage change.
NASDAQ Dubai outsourced its trading, settlement, clearing and custody functions for equities to Dubai Financial Market on July 11, 2010, as part of a strategy to increase trading of its equities by individual investors and bring them together in one liquidity pool with institutional investors.
UAE brokers have increased their share of trading of NASDAQ Dubai equities since the outsourcing. In September, the most active broker by volume was Al Futtaim HC Securities, followed by Deutsche Bank and then EFG Hermes.
Equities traded value on NASDAQ Dubai reached 90 million dollars in September 2010, down 33% from September 2009. Volume for the month reached 168 million shares, down 36%.
The FTSE NASDAQ Dubai UAE 20 index rose strongly in September 2010 to end the month at 1,768, up 14% from the end of August. Since the start of the year the index has lost 4.5%.
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.