Dubai's Biggest Broker Doubling Staff as Trading Surges on Syria
Comment of the Day

September 11 2013

Commentary by David Fuller

Dubai's Biggest Broker Doubling Staff as Trading Surges on Syria

Here is the opening for this interesting article from Bloomberg
Dubai's biggest brokerage plans to almost double staff over the next year, counting on growing demand for the emirate's equities, as trading in the world's most-volatile stock market climbs to a three-year high.

Mena Corp Financial Services LLC, which traded the most shares in Dubai since April among 48 brokerages tracked by the exchange, will boost the number of employees to 50 from 27, Managing Director Nabil Al Rantisi said by phone Sept. 10. The 100-day moving average of stocks traded in the emirate surged to 692 million dirhams ($188 million) yesterday, the highest level since February 2010, data compiled by Bloomberg show

The DFM General Index (DFMGI) tumbled 13 percent in two weeks from a five-year high reached Aug. 25 on mounting concern the U.S. would carry out a strike on Syria and hurt Dubai's economy, which is dependent on revenue from tourism and trade. The gauge jumped 8.9 percent in the last two days, bringing this year's gain to 56 percent, as U.S. PresidentBarack Obama said he would pursue a proposal by Russia to have Syria surrender its chemical arms. The swings made Dubai's index the most volatile in the world in the past month, data compiled by Bloomberg show.

David Fuller's view Fortunately, not all of the Middle East is in chaos, although the region's better performing stock markets this year were understandably roiled by the prospect of a US strike against Syria. Dubai has at least steadied following a sharp 2-week pullback towards its 200-day moving average.

The same can be said for Qatar and Saudi Arabia. War concerns interrupted but probably did not kill off the momentum move that had been underway prior to the Assad regime's increased use of chemical weapons on August 21st. The large bases (Type-3 ranging, time and size as taught at The Chart Seminar) can support higher levels over the medium term.

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