Abu Dhabi Securities Exchange cuts commission fees by up to 90%

 

Abu Dhabi Securities Exchange cuts commission fees by up to 90%
The number of institutional investors in the ADX at the end of May 2019 was 8,395, including 6,318 foreign investors.

Dubai - New rates to make ADX among least-expensive stock markets in Mena

By Staff Report

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Published: Sun 30 Jun 2019, 8:38 PM

Last updated: Wed 3 Jul 2019, 9:42 AM

The Abu Dhabi Securities Exchange (ADX) on Sunday said it cut trading commission fees from 50 to 90 per cent from today, in order to reduce costs, increase liquidity and attract more investors.
The bourse said in a statement that the cut will make it among the least-expensive stock markets in the Mena. It is also part of the Ghadan 2021 initiative, which was announced to remove barriers and lower the cost of doing business.
The Abu Dhabi bourse's cost for annual transactions of less than Dh250 million will be five basis points (0.05 per cent) of the transaction value. For transactions in excess of Dh1 billion over the period of one year, the cost will be one basis point (0.01 per cent).
For example, an investor who trades Dh500 million a year will be charged five basis points over the first Dh250 million and then a commission lower than Dh250 million during the year.
The exchange's trading commission has also been reduced for transactions exceeding Dh1 billion by 90 per cent from the previously implemented transaction fees, which makes the ADX one of the region's least-expensive stock markets in terms of trading commission.
Most major Gulf markets gained on Sunday, reacting to positive global market sentiment after the United States and China agreed to a trade war truce at the G20 meeting.
Dubai rose 1.2 per cent, lifted by Emirates NBD. Abu Dhabi shed 0.2 per cent.
The number of institutional investors in the ADX at the end of May 2019 was 8,395, including 6,318 foreign investors.
Khaleefa Al Mansouri, acting chief executive of the ADX, said through this initiative and the introduction of other investment opportunities, the ADX is providing additional incentives for both local and international investors to invest on the Exchange providing liquidity into the market and helping to finance listed companies' projects, which will support the of expansion their business.
During the first five months of this year, institutional investors traded Dh1.5 billion compared to Dh890 million in the same period of 2018, an increase of 73 per cent, reflecting a positive trend on a medium-to-long term basis.
- waheedabbas@khaleejtimes.com


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