Warning against short-selling



The UAE stocks regulator warned investors today against short-selling, a mechanism used by traders that has been partly blamed for pushing down global markets, but also highlighted the lack of a regulation to curb the practice. "In the absence of a legal framework it is difficult to regulate short-selling as it requires some elements such as the implementation of margin trading regulations for a certain period of time," Abdullah al-Turifi, the chief executive of the Securities & Commodities Authority (SCA) said in a statement. "But we will monitor it closely along in co-ordination with the stock markets and the Central Bank," he added.

Regulators around the world have introduced curbs on the short-selling of financial stocks in recent days in a move kick started by the UK's Financial Services Authority, amid concerns that short sellers were crushing the stocks of major financial names and driving global stock markets down. Short-selling involves an investor selling stock in anticipation that the price will fall ? in which case the investor can buy back the stock at a lower price. The practice has been blamed for contributing to the demise of Lehman Brothers and threatening to bring down Morgan Stanley and Goldman Sachs this week.

The emergency ban on the short-selling of 800 financial stocks in the United States this week sent a chill through the US options market because it would hurt market makers' ability to provide liquidity when investors need a safety valve to weather the financial crisis. But Gulf stock markets remain both less sophisticated than Western bourses and their regulations are less developed. Dubai Financial Market (DFM), the country's main bourse, said short-selling was not in keeping with the spirit of its regulations and urged all parties operating in the market to stick to the rules.

"The market would also like to point out that what is being circulated, that some international financial institutions are conducting short-selling transactions, is not in keeping with regulatory rules," the DFM said. It urged "all parties to abide by established regulator rules and refrain from practices which are not yet codified in local markets." * Reuters

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Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
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Male 51kg Round 1

Dias Karmanov (KAZ) beat Mabrook Rasea (YEM) by points 2-1.

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Male 57kg Round 1

Natthawat Suzikong (THA) beat Abdallah Ondash (LBN) by points 3-0; Almaz Sarsembekov (KAZ) beat Ahmed Al Jubainawi (IRQ) by points 2-1; Hamed Almatari (YEM) beat Nasser Al Rugheeb (KUW) by points 3-0; Zakaria El Jamari (UAE) beat Yu Xi Chen (TPE) by points 3-0.

Men 86kg Round 1

Ahmad Bahman (UAE) beat Mohammad Al Khatib (PAL) by points 2-1

​​​​​​​Men 63.5kg Round 1

Noureddin Samir (UAE) beat Polash Chakma (BAN) RSC Round 1.

Female 45kg quarter finals

Narges Mohammadpour (IRI) beat Yuen Wai Chan (HKG) by points.

Female 48kg quarter finals

Szi Ki Wong (HKG) beat Dimple Vaishnav (IND) RSC round 2; Thanawan Thongduang (THA) beat Nastaran Soori (IRI) by points; Shabnam Hussain Zada (AFG) beat Tzu Ching Lin (TPE) by points.

Female 57kg quarter finals

Nguyen Thi Nguyet (VIE) beat Anisha Shetty (IND) by points 2-1; Areeya Sahot (THA) beat Dana Al Mayyal (KUW) RSC Round 1; Sara Idriss (LBN) beat Ching Yee Tsang (HKG) by points 3-0.

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