27 Dec 2010
(MENAFN) Essa Kazim, Chief Executive Officer of Dubai Financial Market (DFM), released a statement saying that a unified fluctuation limit would take place and that it would reduce maximum weighting of a company in the benchmark index to 20 percent, reported Oman Times.
The statement also said that in one day, boundaries for increasing would be up to 15 percent, and decreasing is up to 10 percent. This would be applied from the beginning of 2011. The statement added that new terms apply only on very active stocks. Stocks that are not so active can go up and down only by five percent a day.
The CEO explained that the new policy is to stimulate trading activity on stocks that are not active at this time.
The new policy comes as shares traded DFM decreased by 54 percent in value in the duration from January to September 2010.
It is worth noting that DFM is the only stock market in the Gulf that sells directly to the public.
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