Equity brokers are reining in hopes of bigger trading volumes in the new year amid a slow return of investor appetite for riskier asset classes.
A traditional end of year rally - which usually takes place in the last two months of the year - failed to materialise this year. During this period, investors typically buy up stocks to improve funds at the end of the year, a practice known as "window dressing".
"I was hoping for an end of year rally, but it may just be the last two days for the end of the year," said Nabil Farhat, a partner at Al Fajer Securities in Abu Dhabi.
The trading commission would have brought much needed income for the struggling financial services sector. About seven securities firms closed this year, continuing a trend of closures since the onset of the Dubai property crisis.
There are 50 brokerages in operation, compared with 103 almost two years ago.
"I think there's going to be more consolidation next year," said Mr Farhat. "The current values leave room for only 25 to 35 companies to operate."
Many of the trading booths on the floor of the Abu Dhabi Securities Exchange stood empty with the lights turned off. At EFG Hermes' booth, a broker stood watching the few day-traders on the floor.
"Today is our last day, next week ours will join the list of empty booths here," he added.
EFG Hermes, an Egyptian investment bank, on Tuesday said it will shut its Abu Dhabi operations to cut costs, and will instead cater to its clients from its regional headquarters in Dubai.
"A big regional investment bank like EFG Hermes, closing its operations in Abu Dhabi is not a good indication for the sector," said Wadah Al Taha, the chief investment officer at Al Zarooni Group in Abu Dhabi.
"Despite being ranked number three last month in traded value, they are trying to reduce their costs, which means keeping its branch is not feasible in terms of trading."
Trading values have reached almost Dh70 billion (US$19.05bn) for Abu Dhabi and Dubai combined this year, an increase compared to last year's Dh57bn figure, but still below the Dh103bn of 2010.
The volume might not be there but the performance is: the ADX General Index has risen 9.2 per cent this year, while the Dubai Financial Market General Index has advanced about 19 per cent in the same period.
Outside the region, equity and bond traders this week will turn their focus to the looming budget deficit in the United States. Policymakers in Washington must avert a fiscal cliff of nearly US$600 billion worth of spending cuts and tax increases due in January.
"The US until now has not taken any measures to restrain their deficit," said Anastasios Dalgiannakis, the head of institutional trading at Mubasher Financial Services in Dubai. "The focus has been on Europe for the past two years, but the US has equally severe issues on both deficit and debt."
Without a deal in place, a fiscal cliff could spill the world's largest economy into recession. In response, the president Barack Obama said he would vie to secure a smaller package that would extent jobless benefits for two million Americans and "lays the groundwork" to buoy economic growth.
If legislators fail to act in time, the fiscal cliff will have a far-reaching impact, cutting growth across markets worldwide, Mr Dalgiannakis said.
"If the US goes into recession at a time when a lot of markets are barely growing or decelerating, it'll be bad for the global economy and for the Arabian Gulf," he added.
"Be it from the commodity angle, or indirectly through less trade and tourism."
Earlier this year, the ratings agency Fitch warned that the failure to tackle the fiscal cliff and raise the debt ceiling could mean a downgrading next year for the world's largest economy.
Standard & Poor's removed its AAA rating for the US last year after a long-running deadlock between legislators and politicians finally eased and a deal was struck at the 11th hour to lift the debt ceiling.
halsayegh@thenational.ae
COMPANY%20PROFILE
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COMPANY PROFILE
Name: HyperSpace
Started: 2020
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
Based: Dubai, UAE
Sector: Entertainment
Number of staff: 210
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
COMPANY PROFILE
Name: Almnssa
Started: August 2020
Founder: Areej Selmi
Based: Gaza
Sectors: Internet, e-commerce
Investments: Grants/private funding
Tips for job-seekers
- Do not submit your application through the Easy Apply button on LinkedIn. Employers receive between 600 and 800 replies for each job advert on the platform. If you are the right fit for a job, connect to a relevant person in the company on LinkedIn and send them a direct message.
- Make sure you are an exact fit for the job advertised. If you are an HR manager with five years’ experience in retail and the job requires a similar candidate with five years’ experience in consumer, you should apply. But if you have no experience in HR, do not apply for the job.
David Mackenzie, founder of recruitment agency Mackenzie Jones Middle East
Farasan Boat: 128km Away from Anchorage
Director: Mowaffaq Alobaid
Stars: Abdulaziz Almadhi, Mohammed Al Akkasi, Ali Al Suhaibani
Rating: 4/5
Business Insights
- Canada and Mexico are significant energy suppliers to the US, providing the majority of oil and natural gas imports
- The introduction of tariffs could hinder the US's clean energy initiatives by raising input costs for materials like nickel
- US domestic suppliers might benefit from higher prices, but overall oil consumption is expected to decrease due to elevated costs
Biog
Mr Kandhari is legally authorised to conduct marriages in the gurdwara
He has officiated weddings of Sikhs and people of different faiths from Malaysia, Sri Lanka, Russia, the US and Canada
Father of two sons, grandfather of six
Plays golf once a week
Enjoys trying new holiday destinations with his wife and family
Walks for an hour every morning
Completed a Bachelor of Commerce degree in Loyola College, Chennai, India
2019 is a milestone because he completes 50 years in business
Squid Game season two
Director: Hwang Dong-hyuk
Stars: Lee Jung-jae, Wi Ha-joon and Lee Byung-hun
Rating: 4.5/5
The specs
Engine: 3.0-litre six-cylinder turbo
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Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
TOURNAMENT INFO
Fixtures
Sunday January 5 - Oman v UAE
Monday January 6 - UAE v Namibia
Wednesday January 8 - Oman v Namibia
Thursday January 9 - Oman v UAE
Saturday January 11 - UAE v Namibia
Sunday January 12 – Oman v Namibia
UAE squad
Ahmed Raza (captain), Rohan Mustafa, Mohammed Usman, CP Rizwan, Waheed Ahmed, Zawar Farid, Darius D’Silva, Karthik Meiyappan, Jonathan Figy, Vriitya Aravind, Zahoor Khan, Junaid Siddique, Basil Hameed, Chirag Suri
The biog
Born: Kuwait in 1986
Family: She is the youngest of seven siblings
Time in the UAE: 10 years
Hobbies: audiobooks and fitness: she works out every day, enjoying kickboxing and basketball
Ticket prices
- Golden circle - Dh995
- Floor Standing - Dh495
- Lower Bowl Platinum - Dh95
- Lower Bowl premium - Dh795
- Lower Bowl Plus - Dh695
- Lower Bowl Standard- Dh595
- Upper Bowl Premium - Dh395
- Upper Bowl standard - Dh295
How to help
Send “thenational” to the following numbers or call the hotline on: 0502955999
2289 – Dh10
2252 – Dh 50
6025 – Dh20
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More from UAE Human Development Report:
Kat Wightman's tips on how to create zones in large spaces
- Area carpets or rugs are the easiest way to segregate spaces while also unifying them.
- Lighting can help define areas. Try pendant lighting over dining tables, and side and floor lamps in living areas.
- Keep the colour palette the same in a room, but combine different tones and textures in different zone. A common accent colour dotted throughout the space brings it together.
- Don’t be afraid to use furniture to break up the space. For example, if you have a sofa placed in the middle of the room, a console unit behind it will give good punctuation.
- Use a considered collection of prints and artworks that work together to form a cohesive journey.
The specs: 2018 Honda City
Price, base: From Dh57,000
Engine: 1.5L, in-line four-cylinder
Transmission: Continuously variable transmission
Power: 118hp @ 6,600rpm
Torque: 146Nm @ 4,600rpm
Fuel economy, combined: 5.8L / 100km
APPLE IPAD MINI (A17 PRO)
Display: 21cm Liquid Retina Display, 2266 x 1488, 326ppi, 500 nits
Chip: Apple A17 Pro, 6-core CPU, 5-core GPU, 16-core Neural Engine
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Main camera: 12MP wide, f/1.8, digital zoom up to 5x, Smart HDR 4
Front camera: 12MP ultra-wide, f/2.4, Smart HDR 4, full-HD @ 25/30/60fps
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In the box: iPad mini, USB-C cable, 20W USB-C power adapter
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Teaching your child to save
Pre-school (three - five years)
You can’t yet talk about investing or borrowing, but introduce a “classic” money bank and start putting gifts and allowances away. When the child wants a specific toy, have them save for it and help them track their progress.
Early childhood (six - eight years)
Replace the money bank with three jars labelled ‘saving’, ‘spending’ and ‘sharing’. Have the child divide their allowance into the three jars each week and explain their choices in splitting their pocket money. A guide could be 25 per cent saving, 50 per cent spending, 25 per cent for charity and gift-giving.
Middle childhood (nine - 11 years)
Open a bank savings account and help your child establish a budget and set a savings goal. Introduce the notion of ‘paying yourself first’ by putting away savings as soon as your allowance is paid.
Young teens (12 - 14 years)
Change your child’s allowance from weekly to monthly and help them pinpoint long-range goals such as a trip, so they can start longer-term saving and find new ways to increase their saving.
Teenage (15 - 18 years)
Discuss mutual expectations about university costs and identify what they can help fund and set goals. Don’t pay for everything, so they can experience the pride of contributing.
Young adulthood (19 - 22 years)
Discuss post-graduation plans and future life goals, quantify expenses such as first apartment, work wardrobe, holidays and help them continue to save towards these goals.
* JP Morgan Private Bank
If you go
Where to stay: Courtyard by Marriott Titusville Kennedy Space Centre has unparalleled views of the Indian River. Alligators can be spotted from hotel room balconies, as can several rocket launch sites. The hotel also boasts cool space-themed decor.
When to go: Florida is best experienced during the winter months, from November to May, before the humidity kicks in.
How to get there: Emirates currently flies from Dubai to Orlando five times a week.
How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
WWE Super ShowDown results
Seth Rollins beat Baron Corbin to retain his WWE Universal title
Finn Balor defeated Andrade to stay WWE Intercontinental Championship
Shane McMahon defeated Roman Reigns
Lars Sullivan won by disqualification against Lucha House Party
Randy Orton beats Triple H
Braun Strowman beats Bobby Lashley
Kofi Kingston wins against Dolph Zigggler to retain the WWE World Heavyweight Championship
Mansoor Al Shehail won the 50-man Battle Royal
The Undertaker beat Goldberg
COMPANY PROFILE
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Total funding: Self funded
