By: Mahmoud Gamal
Dubai – Mubasher: The launch of new indices on Nasdaq Dubai’s equity futures market will prepare the stock exchange to receive new liquidity and pave the way for reinvigorating trades, and diversifying investors.
Nasdaq Dubai’s CEO Hamed Ali announced on Monday that the stock exchange will launch new three stock futures contracts in the first quarter of 2018.
Good step
Launching new indices on the futures market is a good step to introduce foreign investors to this market of Nasdaq Dubai, vice president institutional desk at Menacorp Ahmed Waheed
This step will be the newest in the region, but it may be poorly applied at the beginning in light of weak trades on Nasdaq Dubai’s futures market, Waheed indicated.
Nasdaq Dubai currently needs to be more active, in line with launching the new indices, he added, noting that foreign funds would activate the bourse.
Global institutions
Moreover, sales analyst at Mubasher Financial Services Karim Al Shammas said that the futures market will lure foreign investors and global funds to Nasdaq Dubai, noting that it would be reflected on the Emirati MSCI index.
This step will propel investors to open new positions, Al Shammas pointed out.
Launching stock futures contracts on both the Dubai Financial Market General Index (DFMGI) and the Abu Dhabi General Index (ADI) will remarkably enhance the UAE's financial landscape, he projected.
Accordingly, investors will be able to participate in Dubai’s capital market activities, he said, noting that this will strengthen Dubai’s position as an international capital market.
Easing trades
Furthermore, analyst Manaf Al-Mallouhi highlighted that launching new indices and trading on the UAE stock markets’ indices on Nasdaq Dubai will activate the futures market.
This step will ease trading on the indices by selling or buying them on the futures market, which will protect investors from declining trends or speculations on the same index as new financial instruments will be added to portfolios and funds, Al-Mallouhi added.
Translated by: Mai Ezz El-Din
