Dubai: Nasdaq Dubai, the Gulf's first exchange open to investors and issuers of any nationality, plans to align its trading hours with the Dubai Financial Market PJSC in a bid to attract more liquidity from retail investors.
Trading hours of Nasdaq Dubai equities may be moved to 10am to 2pm Dubai time from 10am to 5pm, the exchange said in a statement posted on its website. The change will take effect in several months, Nasdaq Dubai said.
Nasdaq Dubai has struggled to attract trading volume since its inception in September 2005. Dubai-based interiors contractor Depa Ltd in July blamed the exchange's low liquidity for its falling share price and said it's considering moving to another bourse.
DP World Ltd, the region's biggest port operator, said January 6 it will seek a listing on the London Stock Exchange to help improve investor perception of its value.
"Essentially, the operational functions of Nasdaq Dubai equities trading, clearing, settlement and custody, will be outsourced to DFM," Nasdaq Dubai said, adding that more than half the total value traded on DFM in 2009 was handled by brokers who also trade on Nasdaq Dubai.
The Dubai Financial Market, the only Gulf Arab stock market to sell shares to the public, on December 22 offered $121 million (Dh444 million) to buy Nasdaq Dubai.
There will be no change to the listing status nor the regulatory framework of Nasdaq Dubai equities and the exchange's derivatives market, debt securities and structured products won't be affected, Nasdaq Dubai said.
