Margin trading finance at ADX and DFM up 13% at Dh85.7 billion
abu dhabi — The value of margin trading finance at the Abu Dhabi Securities Exchange (ADX) and Dubai Financial Market (DFM) reached Dh85.7 billion in 2016, an increase of 12.7 per cent from Dh76 billion in 2015, according to official figures.
An analysis by the Emirates News Agency (Wam) showed that the value, presented by brokerage companies to their clients, constituted 23.5 per cent of the total value of all deals done in both markets. This reached a total of Dh364 billion from both buying and selling at the end of 2016.
The growth in the percentage of financial facilitations came with sustained growth in the number of brokerage companies that provided the service, with 35 out of a total of 48 companies working in the Abu Dhabi and Dubai security exchange markets during the past year.
Officials from the higher executive management in both stock exchanges have agreed on the importance of the margin transaction service, which has become an important advanced investment product. It has contributed to the addition of other services and elevated the level of emerging markets under the 2013 Morgan Stanley Index.
Rashid Al Baloushi, CEO of the Abu Dhabi Securities Exchange, said: “The margin trading services are now in huge demand from all sectors of investment, which explains its yearly growth.” He added that during the last two years, the ADX made great efforts to diversify its investment products for companies and investors, and this has led to positive results from margin trading services on the work of brokerage companies.
Eisa Kazem, chairman of the DFM, said that margin trading finance is seen as part of its efforts to rely on new diverse mechanisms to increase the activity of investors in the market.
He underlined that the service had lots of demand during the last two years, with the increase of the number of certified brokerage companies to provide it.