By: Mahmoud Gamal
Dubai – Mubasher: The idea of merging the Abu Dhabi Securities Exchange (ADX) and the Dubai Financial Market (DFM) has been revived after five years of hibernation.
Earlier in May, an informed source told Al Khaleej newspaper that the settlement of the twin bourses’ transactions was assigned to the Central Bank of the UAE (CBUAE).
The merger between the DFM and the ADX is a positive step that would prove the UAE's progress toward the establishment of strong giant financial institution that could compete globally, managing director of asset management at MENACORP Tariq Qaqish told Mubasher.
The assignment of stock market transaction settlements to the CBUAE will makes these transactions easier and increase flexibility, Qaqish added.
This decision will also serve the central bank’s goal to control money inflows and outflows in UAE markets, capital market analyst Basel Abu Teima commented.
Meanwhile, technical analyst Gamal Ajaj remarked that limiting the settlement of market transactions to just one entity, the CBUAE, would, of course, hint at the potential merger.
Unquestionably, the merger would be welcomed by investors as it would facilitate transactions, represent a good performance indicator, and support market capitalisation, the analyst noted.
Translated by: Muhammad Khalid
