Naeem's UAE brokerage said to cut costs, jobs on Egypt unrest

Dubai-based brokerage's move comes after trading levels slumped and amid unrest in Egypt
Naeem's UAE brokerage said to cut costs, jobs on Egypt unrest
STOCK FALL: Dubai’s benchmark index has lost 9.7 percent since Tunisia’s former president Zine El Abidine Ben Ali fled the country amid protests (Getty Images)
By Bloomberg
Mon 28 Feb 2011 10:05 AM

Naeem Shares & Bonds, a Dubai-based brokerage, may trim
salaries by as much as 40 percent and cut jobs after trading levels slumped and
amid unrest in Egypt, said a person familiar with the plan.

“Market performance has been very weak” and support from
Cairo-based Naeem Holding may be reduced after trading in the North African
country was halted for more than a month as the president was ousted in a
popular revolt, said the person, who declined to be identified because the
matter hasn’t been made public. The brokerage has laid off employees and may
continue to do so, the person said. Salaries and jobs are being reduced, a
second person said, without providing further details.

Phone calls to the office of the managing director at Naeem
Shares in Dubai weren’t answered.

Beltone Financial Holding, an Egyptian investment bank, said
February 17 it plans to suspend the activities of its brokerage unit in the UAE
while the company undergoes restructuring.

Prime Emirates, the UAE subsidiary of Egyptian
financial-services company Prime Holding, said February 3 it halted trading
operations and sought closure. Dubai trading volumes have plummeted about 50
percent to a daily average of 91 million this year from the year-earlier period.

Egypt’s exchange, closed since the end of trading on January
27, will resume operations on March 1, the North African country’s Cabinet said
yesterday.

Egypt’s benchmark, the EGX 30 Index, tumbled 16 percent
during the last week of trading and the shares of Naeem Holding slumped 17
percent. President Hosni Mubarak was ousted on February 11.

Dubai’s benchmark index has lost 9.7 percent since Tunisia’s
former president Zine El Abidine Ben Ali fled the country amid protests. The
measure has slumped 83 percent to 1,466.83 since reaching a record in November
2005.

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