Wednesday, 03 December 2008
updated 1 minute ago
00:58 UAE time

YOUR DIRECTORY /

DP World trading guard expanded to 15%

by This email address is being protected from spam bots, you need Javascript enabled to view it on Tuesday, 16 September 2008

STOCK DOWN: The trading safeguard for shares of Dubai port operator DP World has been expanded to 15 percent. (Getty Images)

The trading safeguard for shares of Dubai port operator DP World has been permanently expanded to 15 percent, the Dubai International Financial Exchange (DIFX) said on Tuesday.

Shares of the fourth-largest container port operator fell more than 14 percent on DIFX on Monday, to close at $0.53. In trading on Tuesday the stock was up over 7 percent.

The stock, almost 50 percent down this year, priced its IPO in November at $1.30.

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DP World has lost about $2 billion in market capitalisation since Sunday's close, according to newswire Reuters.

A circular issued by the DIFX said the new safeguard will prevent orders from entering the DIFX’s Trading System if the limit price of that order is 15 percent greater than the opening price.

The order will also be prevented if it is a sell order and the limit price of that order is 15 percent less than the opening price.

“These safeguard ranges, however, can be redefined and modified intraday on a security level depending on market situations,” the circular said.

Scenarios in which the safeguard range may be modified intraday include if the market is “rapidly moving towards the set reference threshold due to underlying market conditions or price sensitive news”, the DIFX said.

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