Daman to offer offer margin trading in shares

DUBAI - Daman Securities, a wholly wholly-owned brokerage arm of Daman Investments yesterday announced the launch of margin trading in the UAE for the first time.

By Babu Das Augustine

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Published: Wed 29 Dec 2004, 10:59 AM

Last updated: Thu 2 Apr 2015, 11:49 AM

The new brokerage firm will offer margin trading across both the Dubai Financial Market (DFM) and Abu Dhabi Securities Market (ADSM).

Daman Securities will be the first time a brokerage company is offering margin trading which allows investors to leverage on 1:1 basis. “For the first time investors in the UAE will be able to raise funds for their investments on the strength of the underlying financial assets they own,” said Shehab M.Gargash.

The lauch of the new brokerage division comes close on the heels of a record performance by the UAE equities on the back of excellent overall corporate performances over the past two years. There are nearly 57 brokers currently registered with the UAE stock markets.

“The new brokerage service represents a milestone and a key initiative for Daman. It also represents an important step in our overall corporate plans. This will catapult Daman to the forefront of the investment community in the UAE and indeed throughout the region,” said Shehab M. Gargash, Managing Director, Daman Investments.

Daman Investments is in the process of increasing its capital base to Dh150 million through a private placement exercise. The private placement will be done during the first quarter of 2005.

“We are pleased to welcome Daman Securities to the Dubai Financial Market. This quality addition augurs well for the pioneering spirit of the DFM. Such value-added service to the financial sector from Daman Securities will act as a boost to investors and traders at DFM. This comes at a most opportune time since DFM's market capitalization has already increased more than 100 per cent over last year even before 2004 comes to a close,” said Essa Kazem, Director-General, DFM.

Daman Securities will offer extra features including a totally dedicated VIP lounge for traders on the sixth floor of the Dubai World Trade Centre, margin trading for share trading and international standard investment analysis and research material for the benefit of those traders who seek more comprehensive and sophisticated brokerage services. The brokerage will be represented at both the DFM and the ADSM.

Majid Julfar, an experienced banker will head Daman Securities. “The launch of the new brokerage services at the Dubai and Abu Dhabi bourses will give a fillip to the trading community. The new features offered to brokers and investors will enhance the status of the facilities already available with the UAE stock markets,” Julfar said.

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