ADX closes trading floors as a preventive measure due to the coronavirus

Chief executive urges participants to use digital platform to trade

Abu Dhabi Securities Exchange's trading floor has been closed from March 15, 2020, until further notice. Image courtesy of ADX. 

Abu Dhabi Securities Exchange closed its trading hall at its main office in the UAE capital and other emirates from Sunday until further notice as a preventive measure against the coronavirus outbreak.

Exchange bosses said the decision was taken in line with instructions from the World Health Organisation about restricting public gatherings to contain the spread of the virus.

“During this public health emergency currently experienced worldwide, it is prudent to take pre-emptive and coordinated precautionary measures in a prompt manner,” said Khalifa Al Mansouri, chief executive of the exchange.

“Trading operations will not be affected by the closure of the trading halls as ADX offers various channels, traditional as well as digital, from which investors can trade,” he said. He recommended that traders use the exchange’s digital platform.

The Abu Dhabi exchange was the second of the Gulf's bourses to announce it is temporarily closing premises to traders, following a statement from Boursa Kuwait on Saturday that it was doing the same. The Kuwait market also said it has temporarily halved its loss limit to 5 per cent, from the previous 10 per cent.

Boursa bosses said trading will be paused temporarily to set a new reference price, before allowing shares to trade again.

The Kuwait Premier Market index of the country’s biggest shares hit the 10 per cent limit-down threshold three times in the past two weeks and reached the new 5 per cent limit shortly after opening for trade on Sunday morning. The index was trading 6.2 per cent lower at 1.22pm UAE time on Sunday. The ADX was trading 3 per cent down, and the Dubai Financial Market slid by 3.4 per cent.