The Dubai debt crisis could harm the local equity derivatives markets, analysts believe.
Matthew Vogel, head of emerging EMEA research at Barclays Capital in London, told Futures and Options Intelligence: “I think we’ll see the markets close early on Monday. Maybe they’ll let it trade down 10%, but that won’t be the end of it.”
Both Nasdaq Dubai’s equity and derivatives markets are currently closed for Eid ul-Adha.
Asked whether equity derivatives would suffer disproportionately as investors sought to limit exposure to Middle Eastern stocks, Vogel replied: “Absolutely. When the markets reopen on Monday, it’s very likely, both for them and the Gulf generally.”
Equity indices have suffered globally today, with the Nikkei 225 closing down 3.2% and the Hang Seng Index closed 4.84% lower. Seoul’s Kospi 200 – which serves as the underlying for the world’s most traded options contract – fell 4.7% to...