Monday 18 July 2011

UAE stock brokers struggle for business amid volumes slump - Emirates 24/7

UAE Stock brokerages are fighting for survival amidst a trading sump on the country’s three stock exchanges – the Dubai Financial Market (DFM), the Abu Dhabi Exchange (ADX) and Nasdaq Dubai.

The slump on the local bourses – exacerbated by this year’s Arab Spring, which saw foreign institutional as well as individual investors pull out their holdings in droves earlier this year – began in earnest after trading volumes peaked in 2007 and early 2008.

In dollar terms, trading on the DFM has slumped 89 per cent (or almost nine times) from an average daily volume of $408m in 2007 to $45.8m in 2011 year-to-date (YTD), underlining the drop in revenues that the country’s brokerages have had to endure in the past few years.

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