What is equities trade dubai world
Dubai is one of seven emirates that make up the United Arab Emirates UAEwhich has a federal government and a central bank. The wealthiest emirate by far is Abu Dhabi, due to its oil revenues. Dubai lacks oil but has pursued an aggressive growth program to develop trade, tourism, and transport, a la Singapore. The program has been fueled by debt and characterized at times by flamboyant excesses. Investors were not totally surprised that Dubai World would encounter problems, but felt assured that the UAE would stand behind Dubai.
Such support was not immediately evident as events unfolded last week. On Thursday, this bombshell roiled global markets outside the US closed for the holiday and continued to unsettle markets on Friday. These reactions were more moderate than some anticipated, following the more pronounced declines outside the US on Thursday, which saw a 3.
Since UK banks were believed to be among the most active in Dubai, financial stocks dropped 5. Clearly markets were shocked by the news and uncertain about exposures and likely outcomes, in view of the lack of transparency about restructuring plans and what is equities trade dubai world position of the UAE authorities.
By Friday the global sell-off was losing steam as global investors appeared to come to the view that the problem was containable. The move was welcomed, but many questions remain as to what, if any, further moves the UAE and Abu Dhabi may decide to make.
While Dubai and Abu Dhabi shares tumbled Monday, their first trading day since the announcement last Wednesday, global markets appear to have moved on as the problem became viewed as more of a regional issue with only limited potential for contagion. It is revealing to look what is equities trade dubai world the way global markets have reacted. The initial sharp global reaction, despite the relatively small amount of debt involved, reflects a continuing sense of investor unease about the rapid run-up in risk assets this year, what is equities trade dubai world by massive liquidity provision by the central banks and the continued presence of other substantial credit risks in the global economy.
This event was a reminder that not all credit risks will be bailed out. The lack of transparency magnified the reaction. On the other hand, the speed with which markets outside of the Gulf limited the contagion and turned their attention to other market developments is an encouraging indication of market resilience. The cyclical bull market in global risk assets still has legs but has entered a more difficult stage in which differentiation between assets will become particularly important.
Debtor countries will likely face a more difficult time. While the Dubai problem did not lead to a major correction in global markets, it served to remind investors of the growing risk of such a correction, which may be triggered by an event few have anticipated. One protection against such a risk is choosing investments wisely, avoiding weak credit risks.
Another protection that we also recommend highly is a strategy of broad diversification across countries, industries, and asset classes. The current availability of almost exchange-traded funds on the US market makes such diversification available at low cost. At Cumberland we have been using ETFs in our actively managed equity portfolios since In we launched our Global Multi-Asset Class portfolio, crafted exclusively of ETFs covering the asset classes of US and international equities, US and international fixed-income, commodities, currencies, and real estate.
A new brochure explaining this investment style is now available on the Cumberland website at the link is no longer available. All information contained herein is for informational purposes only what is equities trade dubai world does not constitute a solicitation or offer to sell securities or investment advisory services.
Such an offer can only be made in the states where Cumberland What is equities trade dubai world is either registered or is a Notice Filer or where an exemption from such registration or filing is available. New accounts will not be accepted unless and until all local regulations have been satisfied.
This presentation does not purport to be a complete description of our performance or investment services. Please feel what is equities trade dubai world to forward our commentaries with proper attribution to others who may be interested. For a list of all equity recommendations for the past year, please contact Timothy J. Lyle atext. It is not our intention to state or imply in any manner that past results and profitability is an indication of future performance.
For a company that has built its foundations on financial spread betting, establishing an office in Dubai is hardly the most obvious destination. IG Group started out in offering spread betting — a type of speculation that involves taking a bet on the price movement of a security — and it was the only product it offered up untilwhen the company branched into contracts for difference.
Contracts for difference is the second biggest. All the clients that are papered to this business contract with IG Limited which is registered at this office.
Quite a lot of FX. The company actually got its licence from the DFSA a couple of months ago, but held off launching it due to Ramadan. Hetherington also believes that contracts for differences CFDs will, in time, become a strong part of its business in Dubai. CFDs are a leveraged product, which means you only have to put down a small deposit for a much larger market exposure. The leverage comes with significant benefits and risks: You want to trade on that and you believe that oil is going to go higher.
You would buy an amount per point — and the per point is two digits on — so Hetherington says there were fundamental issues what is equities trade dubai world the way the CFDs were used in that case, which ultimately gave the derivative a bad name. The other problem in Ireland was that bank stocks were being pledged as collateral for CFDs in the self-same banks.
Holding collateral against the same name that you want to trade. That it is a disaster and we just do not allow it. We have never allowed it. He insists that CFDs are not for stake building. The problem is the products that we tend to trade off the back of are generally futures contracts or stocks where you can borrow and go short. IG offered some clients varying discounts on debts incurred, and several months later, there are still 80 clients out of still having debts outstanding or are in dispute with IG, according to recent media reports.
We were definitely hit by the Swiss franc — not to the extent that companies went bust or had to be recapitalised, but it definitely served as a wake-up call and it made us realise the danger of things which are pegged, manipulated, held in the wrong place, any variation of a theme of where a market is not able to auto correct and self-adjust.
Hetherington says IG — in keeping with its business model — will never advise clients on where to invest. Lots of firms will advise you, some will implicitly advise you. We will help you to trade well, support and give information about products. Hetherington, however, hopes to see it grow like its Singapore office. There are five million people in Singapore and those people actually trade so much more. Their accounts are valuable and their propensity to trade is very what is equities trade dubai world.
It ends up that Singapore is more valuable to us than Germany with 80 million people in it. Sat 19 Sep Subscribe to our Newsletter. Beat the market volatility what is equities trade dubai world a what is equities trade dubai world portfolio 05 Mar Dubai exchange explores options as Indians stop licensing securities abroad what is equities trade dubai world Feb Wall Street cheers as Zuma's resignation marks new era for rand 15 Feb Saudi bourse takes more steps to bolster emerging markets case 10 Jan Nasdaq signs what is equities trade dubai world to modernise Saudi's stock exchange 04 Dec