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Bahrain Financial Exchange Offers Complementary Financial Market Courses
November 3, 2009--The Bahrain Financial Exchange (BFX), the first multi-asset exchange in the MENA region, which will be internationally accessible to trade cash instruments, derivatives, structured products and Sharia-compliant financial instruments, held a complimentary Financial Markets training course at the BFX training Institute for key financial organizations in the Kingdom of Bahrain.
This training course had been designed to provide financial professionals with a fundamental understanding of exchange-traded products and in particular, how these instruments are used to manage risk, diversify portfolios and provide returns.
The training programme was conducted by Mr Simone Carminati, Senior Vice President, Head of Training Facility at BFX who has fifteen years international training experience in corporate, trade and risk finance including financial market products, Mr Carminati commented, “An understanding of the mechanics and pricing of exchange products has become ever more important for trading, accounting, and risk management purposes”.
Arshad Khan, Board Director at the BFX said “there is an ever increasing demand for training in financial markets and this initial programme will provide the market participants with the necessary skills to make best use of the products and services offered by the BFX”.
19 delegates attended the course with representation from Investcorp, Citibank, Taib Bank, HDFC Bank, and Bank of Bahrain and Kuwait amongst other, and was well received by the attendees with praise given to the content and structure of the course, its relevance and the overall professionalism of the BFX’s training Institute.
The BFX Training Institute is an international standard, in-house institute, providing world class conventional and Islamic financial training and education courses.
DME HITS NEW RECORD WITH DAILY AVERAGE OF 2,624 CONTRACTS TRADED IN OCTOBER 2009
Trading volumes have grown by 58% during 2009, says Exchange
November 2, 2009--The Dubai Mercantile Exchange (DME) today announced that a record average daily volume (ADV) of 2,624 contracts was achieved in its flagship DME Oman Crude Oil Futures contract (DME Oman) during the month of October 2009.
The DME also reported a 58 per cent year on year increase in DME Oman average daily volumes during 2009, averaging at 2,012 contracts.
The new record ADV in October 2009 surpasses the previous high of 2,421 contracts achieved in June 2009. That same month also saw the DME attain a new daily volume record of 8,076 contracts traded on 23rd June 2009, following the Dubai Department of Petroleum Affairs’s announcement that it would set its Official Selling Prices (OSPs) based on monthly differentials to DME Oman settlements.
DME Chairman Ahmad Sharaf commented: “This positive news is yet further demonstration of growing market confidence in the DME Oman contract. Increasingly regarded as the fairest and most transparent pricing benchmark in the East of Suez region, it already provides the basis for the Official Selling Prices of Oman and Dubai crudes, the historically established markers in the East of Suez. We look forward to reaching further milestones during our third year of trading.”
Thomas Leaver, Chief Executive Officer of the DME, added: “New records are always welcome and demonstrate the steady progress made in the 29 months since our launch. Significantly, in addition to a record average daily volume in October, we have seen sustained long-term growth in volumes over the past year by 58 per cent, reflecting the increasing support of our strong international customer base and the growing confidence in the DME from a wide range of market participants”.
Dubai Gold & Commodities Exchange Weekly Market Views - November 1, 2009
November 1, 2009--Commodities Overview
Commodities prices remained strong last week, despite some volatile gyrations. Gold and silver experienced sharp declines early in the week, but sprung back to higher levels with surprising rapidity.
This suggests strong underlying investor demand. Even as the U.S. dollar showed signs of possibly having made a long-term base and started to recover last week as precious metals and petroleum prices were showing strength. This is in line with these reports’ contention that recent increases in investor opinions that the global recession is moving toward a conclusion and that an economic recovery is likely to take hold over the next few quarters has been a major factor behind investor demand for commodities. The dollar’s trading patterns have been important, but may have had a secondary level of importance to investors. Investors are accelerating their re-deployment of capital, moving back into commodities.
Currencies Overview
The dollar staged a modest rally off of its recent lows last week. These reports have been anticipating that the dollar would make a floor over the past several weeks, and then move broadly sideways with an upward bias. This has not happened. It still seems likely to emerge, and last week’s dollar trading activity may mark the beginning of such a turn in the dollar’s near-term fortunes. It is too early to conclude that the low has been made for the dollar, however. That said, there is much to commend the dollar to investors. As the broader global economy moves toward the end of the recession and anticipates economic recovery, there should be some further shifting in investor attitudes toward a diversified portfolio, however, with investments of greater perceived risks gaining some favor in the minds of investors. This could continue to keep the dollar lower, even as other investors seek to re-deploy assets in U.S. equities, real estate, and other investments. In this environment, the dollar would be expected to trade sideways in a volatile fashion, still suffering from both short- and long-term economic and financial concerns, while benefiting from expectations of improved profitability on the part of U.S. corporations and a recovery in real estate values.
Dubai Financial Market records net profit of AED 258 million in the first 9 months
October 29, 2009--The Dubai Financial Market Company (PJSC) announced today its financial results for the first three quarters of 2009 ending September 30th, demonstrating a healthy net profit of AED 258 million compared to AED 781 million in the corresponding period 2008, the latter was recorded prior to the global financial crisis. The total revenue reached AED 374 million for the first three quarters of 2009, composed of operational, investment and other income.
Essa Kazim, Executive Chairman of Dubai Financial Market (PJSC) said: “The company managed to retain a healthy level of revenue and profit during the first three quarters of 2009 thanks to our diversified revenue streams, although the total trade value on Dubai Financial Market decreased to AED 38.99 billion in the third quarter compared to AED 58.79 billion in the previous quarter.
Trading activity started quarter three in a relatively subdued mode, before gaining momentum towards the end of the period, which enabled us to deliver a steady level of profitability overall. The market performance in Q2-Q3 2009 reflects improved investor appetite and confidence in the sound fundamentals of the UAE economy and public listed joint stock companies. There are many encouraging signs as we see increased foreign investment inflows and positive sentiments in light of the encouraging company financial results recently announced.”
The DFM General Index (DFMGI) advanced 34% by the end of Q3 (41.7% YTD), making DFM one of the best performing exchanges internationally. DFM is currently the second best performing market in the Middle East and North Africa (MENA) region directly following the Egyptian market. Foreign investment interest in DFM listed companies was reignited during the third quarter of 2009, demonstrated with net buying reaching AED 1.05 billion. Furthermore, institutional investors increased the net buyers of shares to AED 1.3 billion during the same period.
“The continual improvement of market indicators is a clear sign of the attractive economic environment and the investors’ profound belief in the soundness of the UAE economy and DFM-listed companies’. Market indicators for the current period of Q4 2009 shows that the daily trade value is returning to its natural levels of 2008, as the daily average is currently AED 1.227 billion, compared to AED 1.240 billion last year. The latest trends strengthen our positive outlook on the market for the remainder of the year, enabling the DFM company to record stronger results for the full year in 2009,” Kazim concluded.
DIFC: GCC oil reserves worth $18trn
October 29, 2009--According to the Dubai International Financial Centre Authority, the present value of oil and gas reserves of the six GCC countries is estimated at $18.3 trillion, larger than last year's US GDP, Gulf Daily News has reported.
The total amount was based on a price of oil at $50 per barrel and gas at $9 per million BTU. If oil prices were to average $100 per barrel and gas $15, the present value of GCC energy reserves would be $37.7trillion.
Bahrain Financial Exchange (BFX) Becomes International Islamic Financial Market Member
October 28, 2009--The Bahrain Financial Exchange (BFX) a multi-asset international exchange, in the Middle East and North Africa, which will be internationally accessible to trade cash instruments, derivatives, structured products and Shari’a-compliant financial instruments, announced today that it has become a member of the International Islamic Financial Market (IIFM), an international institution focused on the development of the global Islamic capital and money markets.
IIFM’s primary focus lies in the advancement and standardisation of Islamic Financial Services Industry’s documentation, wider market products, processes and the issuance of guidelines & recommendations for the enhancement and unification of the Islamic capital and money market globally.
Director of the BFX commented on this development, “I am delighted that the BFX is part of the IIFM. This is an important step for the BFX so that it can utilise industry best practices and ensure that its Islamic products remain innovative and market led. I look forward to a long and successful relationship with IIFM”.
The IIFM is an international infrastructure development body established and supported by the central banks/ regulatory authorities of Bahrain, Brunei, Indonesia, Malaysia, Pakistan, Sudan, Dubai International Financial Centre and the Islamic Development Bank, Saudi Arabia, as well as a number of regional and international financial institutions
Dubai Financial Market to launch the new trading platform “X-Stream” tomorrow
October 28, 2009-Dubai Financial Market (DFM) announced today that it will launch the new trading system “X-Stream” as of the trading session on Thursday, 29th October 2009. The new platform was delivered by NASDAQ OMX and is replacing the previous system (Horizon).
The migration to the high capacity platform comes after DFM organized extensive training sessions for brokerage firms, involving over 200 trading managers representing 99 brokerage firms.
Emirates International Securities Becomes Member Of NASDAQ Dubai
October 26, 2009--Dubai-based broker Emirates International Securities (EIS)
has become a Member of NASDAQ Dubai, the region's international exchange. EISEIS is one of the largest brokers active in the UAE equity markets and is a subsidiary of Emirates NBD, the largest banking group in the Middle East by assets.
Hamood Abdulla Al Yasi, General Manager of EISEIS, said: "NASDAQ Dubai is achieving an increasingly prominent position in the region's capital markets, through the growing range of its listed securities, its accessibility to regional and international investors and its promotion of world class transparency and governance standards.
"As the financial climate continues to improve in Dubai and across the region, we look forward to working with the exchange in the interests of our clients and the further development of the regional financial sector. We will actively support NASDAQ 's growing synergies with regional capital markets institutions."
Companies from 10 countries in the region and around the world have listed equities on NASDAQ Dubai including DP World, which in 2007 listed the Middle East's largest IPO at $4.96 billion. The exchange also operates the UAE's only on-exchange equity derivatives platform and is the listing venues of Dubai Gold Securities.
Jeff Singer, Chief Executive of NASDAQ Dubai, said: "As we prepare to expand our market and the range of products available to investors, we are delighted to be working with EISEIS, as one of the country's leading brokers able to link thousands of individual and institutional investors to the exchange.
"Through joining the exchange directly from the regulatory jurisdiction of the UAE, EISEIS can provide easy and straightforward access to NASDAQ Dubai for its clients."
Dubai Gold And Commodities Exchange Weekly Market Views-October 25, 2009
October 26, 2009--Commodities Overview
Commodities prices in general have continued to show strength.
This trend has been particularly evident in the prices of gold, silver, and petroleum, covered in these reports.
Prices may be expected to continue to strengthen, although from a short term prospectus these three major traded commodities may be over-due for a short-term downward correction due to
profit-taking.
Currencies Overview
The dollar has continued to lose value against the euro while rising against the pound sterling and yen.
The decline in the dollar has been relatively modestly paced in recent weeks, suggesting that there is not a great deal of panic selling based on short– or long-term negative views toward the dollar. Rather, the dollar has been slipping against the euro as investors globally have become ever more convinced that the recession is moving toward its end, to be replaced by economic recovery. In this environment, investors are moving away from U.S. Treasury securities and U.S. government backed bank CDs toward a broader array of investments. Some investors are moving toward higher yielding bonds, while others are converting dollars to euros and other currencies in order to re-deploy long-sidelined assets in Europe and elsewhere. The British pound and yen have been weak reflecting more pessimistic views of the economic prospects of those countries. The dollar may continue to slip against the euro this week. The dollar carry trade definitely has been a negative for the dollar.
The absence of U.S. government action to encourage banks to increase corporate lending also has sent a negative message to the market.
Weekly Market Views-Dubai Gold And Commodities Exchange
October 20, 2009--Commodities Overview
Commodities prices continue to benefit from growing optimism about global economic trends and conditions. Gold,silver, and oil all have benefited from this. Other commodities also have done well, as investors, some fabricators, and others have built inventories.
The inventory building largely ended when the prices of many commodities, including base metals, rose sharply in the second quarter. This has left commodities vulnerable to a sell-off and a drop in prices.
Currencies Overview
The U.S. dollar continued to sell off against most major currencies last week. The dollar index fell to 75.45 points on 15 October, which was the lowest level so far this year. Growing optimism over the state of the global economy has been encouraging many investors to part from some of their dollar-denominated assets and diversif into higher yielding assets.