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The value of shares traded on NASDAQ Dubai in November 2011 reached 36 million dollars, down 42% from 69 million dollars in October 2011, a trend in line with regional exchanges.
The value traded in November 2010 was 97 million dollars. Individual investors accounted for 5.8% of the traded value of all shares traded on NASDAQ Dubai in the first 11 months of 2011. Total equities traded value in that period by individual and institutional investors was 646 million dollars.
NASDAQ Dubai started routing all its equities trades through the trading platform of Dubai Financial Market (DFM) in July 2010, in order to facilitate access by individual investors. Individual investors accounted for 2.7% of equities traded value in the fourth quarter of 2010.
Jeff Singer, Chief Executive of NASDAQ Dubai, said: “In a challenging period for the UAE’s capital markets, in which trading values across its stock exchanges have declined, NASDAQ Dubai continues to strengthen its infrastructure and prepare for new product listings. Institutional liquidity combined with an active retail base will put NASDAQ Dubai in a strong position to attract further initial public offerings as market confidence recovers.”
The FTSE NASDAQ Dubai UAE 20 index ended November 2011 at 1,438, down 4% from the end of October 2011 and down 20% from the end of 2010. The index tracks 20 liquid stocks listed on DFM, the Abu Dhabi Securities Exchange and NASDAQ Dubai. It has been designed as a hedging and investment mechanism for GCC and international investors.
Trading of Dubai Gold Securities (DGS) on NASDAQ Dubai reached 760 securities in November 2011. The total value of DGS traded in the first 11 months of 2011 reached 2.3 million dollars.
DGS closely track the spot price of gold and are structured products that can be traded on NASDAQ Dubai through a broker, just like equities. DGS are backed by gold in a bank vault and can be held without the inconvenience of holding physical gold.
NASDAQ Dubai outsourced the trading of DGS to the trading platform of DFM in October 2011.
