Sunday 26 December 2010

DFM Sets Up Unified Fluctuation Band; Cuts Maximum Share Weight in Index - Bloomberg

Dubai Financial Market PJSC, the only Gulf Arab stock market to sell shares to the public, introduced unified fluctuation limits and cut the maximum weighting of a company in the benchmark index to 20 percent.

Listed securities can rise as much as 15 percent daily and fall as much as 10 percent from Jan. 2, the Dubai government- controlled bourse said in an e-mailed statement today. Currently this band applies only to the most active stocks, while non- active stocks can gain or decline as much as 5 percent.

“The new rules will enhance trading activity on the current non-active stocks” which includes some “major” companies, the bourse’s Chief Executive Officer Essa Kazim said in the statement. He refered, among others, to Emirates NBD PJSC, the country’s biggest bank, and Shuaa Capital PSC, the largest investment bank, as non-active stocks.

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