HSBC Middle East Securities, the local brokerage arm of Europe's biggest bank, will halt trading in shares for retail investors and will instead focus on institutional clients amid sluggish markets and low volumes.
Video:Market Minute, October 17 2011
Hadeel Al Sayegh reports on the opening of local markets.
"The market-share was relatively small, and the profitability was not there but aligned with most brokerages in the UAE," said Georges Elhedery, Middle East and North Africa Head of Global Markets.
"If we wanted to be credible in the retail space, we would have had to invest incredibly in an internet platform. But with the current market, the investment did not make a lot of sense. Now is not the right time"
The brokerage posted a loss of Dh4.7 million in the first half of the fiscal year, compared to a loss of Dh6.6 million in the year earlier period.
Dubai's benchmark, the Dubai Financial Market General Index, was down 0.4 per cent to 1367.91 points at 12pm local time. The Abu Dhabi Securities Exchange General Index lost 0.5 per cent to 2456.89 points.
Elsewhere in the region, Kuwait's index lost 0.1 per cent to 5891.60 points. Bahrain's index was little changed at 1150.35 points. Oman's benchmark added 0.3 per cent to 5556.45 points. Qatar's benchmark added 0.2 per cent to 8454.49 points. The Saudi Tadawul All-Share Index was down 0.4 per cent to 6135.12 points.
halsayegh@thenational.ae
