Trading on the Dubai Financial Market (DFM) on Wednesday witnessed an increase of 161 percent on the first day of implementation of the minimum trading commission cancellation.
The total number of 6,739 transactions represented the highest level of daily trade count since the beginning of this year, compared to 2,579 transactions on Tuesday.
Trade count also jumped 146 percent compared to its 2,740 average year to date, DFM said in a statement.
It added that the DFM General Index gained 13.6 points (0.5 percent) during Wednesday’s session taking its 2021 gains to 17 percent.
The decision to waive minimum trading commission is part of DFM’s initiatives aimed at promoting retail investors’ participation in the market and enabling them to avail its lucrative investment opportunities.
DFM said the immediate jump in trade count underlines that investors targeted by this initiative recognise its importance in reducing the transaction cost and consequently maximises the potential returns.
DFM’s investor base covers 207 countries. International investors account for 48.2 percent of its trading activities and they have maintained a growing presence on the market in recent years with an ownership of 18.5 percent of the market capitalisation at the end of June 2021.
Additionally, foreign investors accounted for 69 percent of new investors on DFM.
Last month it was announced that DFM would be extending its trading hours from four hours to five hours daily, from October 3.
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