HSBC, Rasmala Units Among 90% of U.A.E. Brokers With Loss as Volumes Slump - Bloomberg

Almost 90 percent of brokerages in the United Arab Emirates, including units of HSBC Holdings Plc and Rasmala Holdings Ltd., reported first-quarter losses as political unrest and debt restructurings pushed trading volumes to six-year lows.

Of the 64 brokerages listed by the U.A.E.’s Securities & Commodities Authority as “active,” 56 posted losses in the quarter, according to financial statements on the regulator’s website. Five brokerages reported declining income, two returned to profit and one had a yearly loss.

“Brokerages are a function of the market value, and that value has dropped significantly,” said Mohammed Ali Yasin, chief investment officer at Abu Dhabi-based financial services company CAPM Investments PJSC. “It’s a constant challenge and it doesn’t look like things will improve in the second quarter.”