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.
© Copyright Emirates News Agency (WAM) 2021.