Investors in Dubai will be able to explore new hedging and investment possibilities following the launch by Nasdaq Dubai of futures contracts linked to the Dubai Financial Market (DFM) General Index.
The exchange is heralding the launch as “a breakthrough for investors in that it provides exposure to a basket of 37 companies listed on DFM, the region’s second largest stock market without requiring them to trade their shares or single stock futures”.
The 37 companies include Emaar Properties, Dubai Islamic Bank and Dubai Investments and cover sectors including property, banking, telecoms, insurance and transport.
The value of the index currently stands at 3,330, having launched with a base value of 1,000 in 2003 and reached a high of 8,485 in November 2005.
Nasdaq Dubai will offer two quarterly contracts in DFMGI futures and has employed Shuaa Capital to act as market maker and to support liquidity.
“Index futures further strengthen Dubai’s position as an international capital markets hub offering a wide range of opportunities and are likely in particular to attract more foreign investments from large funds seeking hedging and investment solutions,” said Essa Kazim, chairman of DFM.
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