Shares in the company that runs the Dubai Financial Market (DFM) surged to their highest level in five months as investors bet that new regulations on short-selling will give the nation's only listed bourse a boost.
"The new regulations should increase trading volumes, which would affect DFM's bottom line," said Tariq Qaqish, the deputy head of asset management at Al Mal Capital in Dubai. "Investors are allocating their portfolios with a long-term view, in the expectation that the new regulations will help their business going forward."
DFM's shares surged 4.8 per cent to Dh1.08, the highest level since May 7. It was the most actively traded stock yesterday with more than 36.7 million shares traded. On Thursday, the Securities and Commodities Authority approved a package of regulations, including short-selling, borrowing and lending, and market-making.
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