Dubai: The value of equities traded on Nasdaq Dubai rose 9 per cent in the first four weeks following its operations outsourcing to Dubai Financial Market (DFM), compared to the same period of 2009. The value reached $51.3 million, up from $47 million. The proportion accounted for by individual investors, as opposed to institutions, also increased.
Volume in the four-week period, beginning on July 11 2010, fell by 18 per cent to 107 million shares, from 131 million the year before.
Measured by percentage change, the figures for both total value and total volume were the best performing of any UAE stock exchange over that period.
Nasdaq Dubai outsourced its trading, settlement, clearing and custody functions for equities to DFM on July 11 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 took place.
In the first four weeks, the most active broker by volume was Al Futtaim HC Securities, followed by Deutsche Bank and then EFG Hermes.
In the first seven months of this year, traded value of Nasdaq Dubai equities rose to $780 million from $521 million in the same period of 2009, an increase of 50 per cent. Volume fell to 1.69 billion in the same period from 1.89 billion, a decrease of 11 per cent. The FTSE Nasdaq Dubai UAE 20 index ended last month at 1,609, up 6 per cent from June and 13 per cent lower than at the start of the year.
