Stocks listed on the UAE’s bourses will see their limit cap rising to 10% from the current 5%, effective February 28, the Abu Dhabi and Dubai markets said.
The development comes in implementation of a cabinet decision whereby the stock markets shall revert back to the above mentioned cap from the 5% one, which was set in March 2020, a WAM report said.
The new cap means that share prices of each listed company can now drop by a maximum of 10%, instead of 5%.
The Securities and Commodities Authority in March 2020 decided to reduce the limit cap per day to 5% of the last closing price in order to contain the fluctuations, triggered by the coronavirus. -- Tradearabia News Service