UAE cabinet raises daily decline limit in shares to 10% from February 28

Reuters Images/Abdel Hadi Ramahi

The new cap means that share prices of each listed company can now drop by a maximum of 10%, instead of 5%

Staff Writer, WAM (Emirates News Agency)

February 24, 2021

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ABU DHABI - Stocks listed on the UAE’s bourses will see their limit cap rising to 10 percent from the current 5 percent, effective February 28th, the Abu Dhabi and Dubai markets said on Wednesday.

The development comes in implementation of a cabinet decision whereby the stock markets shall revert back to the above mentioned cap from the 5 percent one, which was set in March 2020.

The new cap means that share prices of each listed company can now drop by a maximum of 10 percent, instead of 5 percent.

The Securities and Commodities Authority in March 2020 decided to reduce the limit cap per day to 5 percent of the last closing price in order to contain the fluctuations, triggered by the coronavirus.