Business | Markets
Dubai financial market circuit breaker slashed
The Dubai Financial Market on Sunday reduced the limit it imposes on daily stock movements (circuit breaker) to 10 per cent from 15 per cent to curb the huge share price volatility.
- By Babudas Augustine, Banking Editor
- Published: 11:45 October 12, 2008
Dubai: The Dubai Financial Market on Sunday reduced the limit it imposes on daily stock movements (circuit breaker) to 10 per cent from 15 per cent to curb the huge share price volatility.
The decision was taken "in view of the exceptional global financial circumstances and the fluctuations currently witnessed in international markets," DFM said in a statement.
The bourse said on Sunday that this move is a temporary measure. However, it did not specify how long it will be in effect. The Abu Dhabi Stock Market already has the circuit breaker set at 10 per cent.
Analysts welcomed this move and said it would help the market withstand the high volatility.
"The reason for introducing a lower circuit breaker is to stem the steep intra-day decline in share prices which was leading to panic while there is nothing fundamentally wrong with individual stocks or the market as a whole. This will protect investors to some extent," Vyas Jayabhanu, head of Al Dhafra Financial Broker, said.
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