By: Mahmoud Gamal
Dubai – Mubasher: The Dubai Financial Market (DFM) aims at incentivising investors and attracting fresh investments to the stock market.
In pursuit of this goal, the DFM on Tuesday unveiled the list of securities eligible for trading under the recently-launched regulated short selling (RSS) service, which incorporates 19 securities, including Air Arabia, Ajman Bank, Amanat Holdings, Amlak Finance, DAMAC Properties, and Aldar Properties.
By the RSS service, investors can sell borrowed securities listed on the DFM with a commitment to return to the lender under a mutually-signed agreement, according to a bourse statement.
Compiling the list of the RSS-eligible companies based on certain requirements, which mandate that the company must have a minimum liquidity of AED 100 million, confirms the Dubai bourse’s plans to boost shares’ security, said Fadi El-Ghattis MindCraft Consultants’ CEO.
The new service will benefit the pessimistic investors, which prefer to buy shares at very low prices, El-Ghattis added, noting that the RSS was already used in global markets, but it must be suspended in case of crisis or major drops on the markets.
A body of laws should be drafted to protect investors from the RSS’ negative impacts, El-Ghattis revealed.
The situation on the UAE’s markets allows for such service, given the increase in their liquidity, Mena Corp’s financial analyst Issam Kassabieh told Mubasher.
The markets default is incentivising investors to inject more liquidity while providing a safe investment environment with a sustaining a stable growth, Kassabieh concluded.
Translated by: Muhammad Khalid
