Dubai:
Traders were stuck with positions in dual-listed Kuwaiti companies in the UAE after shares were suspended pending results.
The UAE bourses suspended shares of dual-listed HITS Telecom, Agility, Ekttitab Holding, Al Madina as companies didn’t publish their yearly results within 45 days, but these companies are supposed to publish their results within 90 days as stipulated by the Kuwaiti regulator.
“When the public company came to the UAE. They should know that they have such type of commitment in the UAE. The company took that risk the day when they decided to list,” Mohammad Ali Yasin, managing director at National Bank of Abu Dhabi Securities told Gulf News.
The UAE regulator changed the window to publish the results to 45 days from 90 days last year. Securities and Commodities Authority could not immediately reached for a comment.
Option
Even the traders have an option of transferring the shares to Kuwait in case of a sharp volatility in prices.
“There’s nothing stopping the traders from transferring shares from here back to the original market where you bought it from,” Yasin said. The process may take 4-5 days, he added.
Traders can transfer the shares to the depositary in Dubai and from there the depositary in Kuwait at the market price in Kuwait.
HITS Telecom closed at Dh0.80 earlier in the week, and was one of the most active stock on Dubai bourse.
Agility closed at Dh9.43. Ekttitab Holding closed at Dh0.57.
Al Madina ended at Dh0.69.
Among others, stocks that were suspended included National International Holding Company on the Dubai Financial Market, while Abu Dhabi Securities Exchange suspended Oman and Emirates Investments, National Takaful Company, Ooredoo, Abu Dhabi National Energy Company, AXA Green Crescent Insurance Company and Emirates Driving.
