Dubai – Mubasher: Nasdaq Dubai has added the National Bank of Abu Dhabi (NBAD), Dubai Financial Market (DFM), and Dubai Investments (DIC) to its equity futures market, increasing the number of companies on which futures can be traded to twelve.
Market making services on the three newly-added companies are provided by SHUAA Capital, which has been market making on all futures since the market opened on 1 September 2016, Nasdaq Dubai said in a statement released Tuesday.
NBAD, DFM, and DIC were added to the market on 2 April.
This follows NBAD’s merger with First Gulf Bank (FGB) to bring about the largest bank in UAE named First Abu Dhabi Bank.
“The addition of three more prominent UAE companies, whose equities are widely traded, adds further depth and breadth to our futures market as a growing range of investors make use of the opportunities it provides for hedging and investment,” Hamed Ali, CEO of Nasdaq Dubai said.
He added: “As the market expands further in coming weeks and months, including the addition of equity indices, investors will be able to make increasing use of the benefits of leverage, and the capacity to make gains when underlying shares are falling as well as rising.”
Since the market’s opening in September last year, over 1.14 million contracts have been traded, with each contract representing 100 shares.
Trading rose to 184,000 contracts in March, compared to 162,000 contracts in February, with a growth of 14%.
The most effective broker in terms of traded value on the market in March was Menacorp, followed by Al Safwa Mubasher and Integrated Securities.
“SHUAA Capital is proud to see the UAE’s burgeoning futures market enter the second phase of its development. Our provision of market making services for three more blue chip corporate entities will provide a significant boost to Nasdaq Dubai’s futures offering, enabling investors to benefit from an increasingly broad range of opportunities,” SHUAA Capital chairman Jassim Alseddiqi stated.
“SHUAA Capital’s expertise, experience, and resources play a key role in the ongoing development of the UAE’s capital markets, and we look forward to working with Nasdaq Dubai and its constituent companies over the coming months to continue enhancing and expanding the emirate’s and the UAE’s investment landscape,” he added.
NBAD, DFM, and DIC join companies on which futures are traded on the market, namely: Abu Dhabi Commercial Bank, Aldar Properties, Arabtec Holding, DP World, Dubai Islamic Bank, DXB Entertainments, Emaar Properties, Etisalat, and Union Properties.
Nasdaq Dubai plans to widen its futures market, including futures and options on shares of other companies listed on MENA exchanges, as well as futures on equity indices. A group of regional and international financial organisations are having official talks about the exchange to become market participants.
