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

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

  
Clocks showing the time in different cities of the world are pictured at the stock market, in Dubai, United Arab Emirates, November 5, 2020.

Clocks showing the time in different cities of the world are pictured at the stock market, in Dubai, United Arab Emirates, November 5, 2020.

REUTERS/Abdel Hadi Ramahi

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.

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