DFM allows trading on fraction of fils

[sam111sam]

Starting March 11 DFM will display prices and accept orders up a tenth of fils

For example: You will see UPP bid order ar 0.559 while offer orders are at 0.561. The current 1 Fils step is 2% up or down on some stocks which is very high...It also distorts the technical charts...But most important it reduces trading volumes as the minimum spread between buy and sell can be very high in stocks like Tabreed and UPP.

Smart move ...and worlds first ...Does it indicate anything ?

I guess DFM is getting prepared for most stocks dropping to few fils

My Son have 112 Dhs that he wanted to invest in DFM, now he can open an account and start trading

[GPIC]

Hi Sam

It doesnt portray great confidence in the market...

UPP at dhs0.46 and now it can move +/- dhs0.001, do they really think some stocks are going to drop so much that it will be difficult to trade stocks when they drop to dhs0.10...!

Not sure i like what i am seeing!

Is this just DFM...or will ADX follow suit? I cant imagine investors fighting over FGB shares at a price of dhs17.50 or dhs17.501...!

I would be worried if i was holding any stocks less than dhs0.40-dhs0.75...!

Cheers
GPIC

[bandakok]

It would not really matter that much Max loss is still at 5% for UPP it just dilutes faster i think this way, but will also help when stock start moving up, by what i see DFM wants more trades at limit up or down by doing this.
Looking at the big picture i would not rule out The idea of income tax being introduced quicker than planned ( 2012 ) on indivisuals and companies, lots of debts have to be covered somehow.

[sam111sam]

It is only DFM that will do that ...and only for stocks trading below Dhs 10, for stocks trading above Dhs 10 the min will be 1 Fils instead of 5 fils now

As for income tax, it is unlikely in UAE, because it requires federal agreement, but VAT is coming for sure. It was originally planned for 2010 but postponed during the crisis

The largest threat for Dubai is population drop which can kill the demand for housing and services.

I think the Dubai model of indirect tax is much more effective than a typical income tax model. Don't underestimate the amount collected from Salik, RTA & traffic fines, Municipality Housing fees, Immigration and DEWA
Did you read about DEWA Dhs 4.2B profit in 2009 in Gulfnews ?

[bandakok]

Hi Sam, as i understand Incom tax is left for each emirate to decide and not Federal.
I have enclosed a link: http://www.dubaifaqs.com/tax-in-dubai.php

Further the introduction of Mandatory ID was for this purpose only.

[smartmoney]

[rooster]

Nasdaq Dubai has been trading with 3 decimal points for a while now. In the beginning I didn't understand the reason of changing it, after observing it for a few days, I think this way it gives people who have huge volume a better chance of jumping the trading queue. For small investor like me, it will not make that much different. A personal opinion of course.

I also want to sell everything and forget about DFM but I have lost too much to do that.

Rooster

[sam111sam]

Seems that the new decision is taken as negative much more than positive

I think it is neither...does not have much effect in my opinion ...by the way the 10% limit down and 15% limit up did not change

I think the new system will eventually increase volumes on the sub Dhs stocks like UPP and Deyar. It is too much to have only 2% stops as a min.

Anyway, I think the main driver for the decision is the ongoing integration between Nasdaq Dubai and DFM ...Next week they will also have the same working hours which makes me think that eventually they would go for one trading IT platform which will save them lots of moeny...saving is the going theme in Dubai Co;s now

I'm rather sad that no one had thanks me for the bringing you, promptly, this good news that will take DFM few points down

[traderdon]

Rooster,

I am not in your shoes so I cant really decide. Its you who has to decide and bare whole responsibility of your own actions but I 'personally' do not think that it is the right time to sell all positions. If I were you and had a diversified portfolio then I would re-evaluate each individual stocks and hold on to the stocks that are undervalued and has the 'potential' to return back up. At least they will give you a little more than what you would get back if you were to liquidate today.

My point is simple...If one had to sell their positions then it should have been done long long back than doing it now. You have already brave the MAJOR part of the crisis... As I hope and plan to see is that the worst of the crises is behind us. We may not get back to the same high levels any time soon but there is not too much downside left either..If one did not fear the huge fall until now then fearing the remaining left (if any) would be regretful in the end.

For eg. EMAAR a key leading stock on DFM backed by the govt. is so undervalued that believing in any theory that assumes bankruptcy of it would be ridiculous. So for the price that it is around...I can only see more upside of it in the long run than the downside...

What we are seeing, not just in dubai but all around the world is an economic cycle refresh. You already took yourself from the top of the cycle to the bottom...although it should have been the other way around... ...The race is just about to begin...Quitting now doesnt make sense...This is just the beginning of a new cycle...Wishful thinking

Sleep Well...

Make your own decision!

[traderdon]

Regardless of the implication of the news...any info provided on this forum is to help others make better decisions and be an informed trader/investor...

So thanks Sam and ALL for the time and support...

BTW...I cant help being bullish on EMAAR for very near term unless proven wrong by the market...

[joypsam1]

[khan007]

[rooster]

Thank you Traderdon for your advise. At the moment, I am holding Air Arabia, DSI & Aabar, they are/were all 'blue chips' companies according to this forum at different stages. When the prices have gone up in the good time I didn't sell them because I thought I could have something to fall back on in future. Then everything dropped because of DW.

I have cut a huge lost and sold all my DPW shares to invest in DFM. I understand it is unwise to just quit now, but with all the bad sentiment ... The three stocks that now I am holding are all posted profit but certainly do not reflect from their share prices at the moment.

Air Arabia is still reasonable to hold but its rating is down...
DSI... because of all the backlog ...
Aabar ... because of the merger...

I suppose my problem is I bought them when the prices were high and I just keep looking at my red portfolio everyday, it is heartbreaking...

Rooster

[sam111sam]

[moor]

[JDP]

As per Emirates Business 24/7, stocks below Dhs.1, will be allowed to tick size to 3-decimal.

[sam111sam]

Announced today
DFM Postponed the Plan based on request from brokers
No time frame

The will now work on a new plan for 0.00001 of a Dhs.
Min transaction size will be 3 Dhs and
Min commission will be reduced to 7.5 Dhs.
Min trading age will be dropped to 12 yrs
Traders with more than Dhs 20k in their accounts will be considered VIP

...Just joking

[khan007]

[safeuae]

Hi.

I think the ID scheme has nothing to do with the income tax which i believe will be introduced within the next 10 years. ID is a must for even those that do'nt work, students etc. I think the recently introduced salary payment system through banks and Labour Ministry will be how employee income tax is collected.

Saif

[GPIC]

[sharewadi]

WAM 10 March 2010:

Dubai Financial Market Postpons Three decimal Tick Size System Dubai - Dubai Financial Market (DFM) has announced that the introduction of three decimal Tick Size system on securities with a market value below AED 1, due on Thursday, March 11th 2010 will be postponed until further notice, in response to brokers' request. It is noteworthy that brokerage firms have asked for more time to complete their preparations in coordination with vendors and to ensure that their clients are fully aware of this development.

_________________
UAE IPO list | posting guidelines