ADSM to open branches

The Abu Dhabi Securities Market (ADSM) plans to open branches in Ras Al Khaimah and Fujairah to facilitate the stock trading process for investors there.

It has invited public joint stock companies from the two emirates to enlist, a top ADSM official said yesterday.

"We are in the process of opening branches and have invited public joint stock companies in the mentioned emirates to list. Some have already applied to the Emirates Securities & Commodities Authority (ESCA)," said Ahmed Humaid Al Mazrouei, ADSM director general, on the occasion of the first anniversay of the Abu Dhabi floor.

ADSM opened for trading on 15 November 2000 with 11 companies Currently it has 15 listed companies with a market capitalisation of Dh18.5 billion as of September.

As reported by Gulf News earlier, ADSM has signed an MoU with the Doha Securities Market to list Qatar Telecommunications.

There are 11 brokers operating at ADSM. "Our focus has been to emphasise the role of a formal market in ensuring transparency and promoting the disclosure of information. In fact, eight companies have submitted their quarterly financial statements and 11 have submitted their half-yearly reports," he said.

Additionally, ADSM publishes market quotes on a daily, weekly and monthly basis as also guides for investors, companies etc. Strict controls are in place to detect insider trading.

From October 1 onwards, ADSM began computing the Abu Dhabi Index based on the standard weighted average method. Al Mazrouei said the bourse has drafted its own rules and regulations and bye-laws in accordance with all the federal laws issued by ESCA.

"We have also devised a business model that satisfies most of the G-30 recommendations and as such delivery versus payment is guaranteed in the shortest settlement period of T+1 in an attempt to increase the turnover in the market.