DFM reopens its trading floor for investors tomorrow

The Dubai Financial Market (DFM)  on Sunday announced that it is reopening its Trading Floor and Customer Affairs counters for investors as of Tuesday, July 7, 2020, with the strict implementation of precautionary measures for the safety of clients and employees.

The DFM Trading Floor and Customer Affairs counters were temporarily closed mid-March 2020.

The DFM has maintained its trading activities as usual in spite of the temporary closure of the aforementioned premises.

The DFM resumed work from the Trading Floor early June with a gradual return of its employees and brokers to work. As of June 14, 2020, all DFM employees returned back to office work.

Hassan Al Serkal, Chief Operating Officer and Head of Operations Division of DFM, said, “Following the UAE’s remarkable success in containing the pandemic, we are reopening the Trading Floor and Customer Affairs counters under strict precautionary measures to protect public health and safety of clients and employees alike. For instance, the measures include usage of thermal measuring

devices at the entrance of the Trading Floor, commitment to safe distance, controlling investors’ accessibility to Customer Affairs counters and guiding them to submit their applications through the

smart devices available on the Trading Floor as well as installing barriers on these counter.”

“We highly encourage market participants to continue utilising DFM’s electronic and smart platform with the same pace witnessed during the past three months. The reopening shouldn’t substitute the success achieved in terms of accomplishing transactions through DFM smart platforms developed in line with the leadership’s vision on digital transformation and as part of the Smart Borse strategy. Through these all-inclusive online and smart phone applications, investors can seamlessly accomplish all market services as well as the services of both Dubai Clearing, Settlement and Depository, CSD, and Dubai Clear,” Al Serkal added. Non-Arab foreigners traded to the tune of Dhs6.3 billion of shares in June, or 30 per cent of the total volume of transactions conducted across the Abu Dhabi and Dubai financial markets, according to figures released by the two bourses.

The total trades in the two markets hit Dhs20.3 billion in June, Dhs12.47 billion of which in Dubai Financial Market, and Dhs7.83 billion in Abu Dhabi Securities Exchange.

The statistics confirm more tendency among non-Arab investors to purchase at DFM, while in Abu Dhabi, they tended more to sell shares.

In more detail, their purchases in ADX in June valued about Dhs1.5 billion while sales stood at around Dhs1.8 billion.

In Dubai, they purchased around Dhs1.6 billion in shares while their sales stood at Dhs1.41 billion, therefore accounting for 24.1 per cent of the total transactions conducted in there last month.

In line with the Securities and Commodities Authority’s (SCA) decision No. (13/Chairman) of 2020 Concerning Procedures of Dealing with Risk Classified joint stock companies, the Dubai Financial Market (DFM) announced the launch of the “Category B Screen” as of July 5, 2020.

The new screen consists of listed companies with accumulated losses of 50 per cent and above of its issued capital based on the financial results of 2019 as well as companies suspended from trading for six months and above. It is noteworthy that the launch date of the new screen is in accordance with the SCA’s directions in this regard.

Consequently, the DFM listed companies have been categorized within two categories, Category A consisting of 54 UAE and foreign companies while Category B consisting of 12 UAE and foreign companies, including 4 suspended companies. Hassan Al Serkal, Chief Operating Officer (COO) and Head of Operations Division of DFM said: “The Resumption of trading on suspended companies’ shares is pending to their adherence to SCA’s requirements including the disclosure of the 2019 audited financial results as well as obtaining SCA’s approval on improvement plans to reform the conditions that led to the suspension. Such requirements are of significant importance so that investors become fully aware of the financial position of each company and risks associated with it and take their investment decisions accordingly.”

“The launch of the Category B Screen underlines DFM’s commitment to protect investors’ interests by ensuring a fully transparent investment process. The DFM has accomplished various technical and regulatory arrangements to launch the new independent screen as stipulated by SCA’s decision, moving all companies that fall within Category B criteria including companies suspended for six months and above as well as listed companies with accumulated losses of 50 per cent and above based on the annual financial results, to this new screen,” Hassan Al Serkal added.

WAM/Agencies