March 17, 2020 / 6:23 PM / 18 days ago

UPDATE 1-UAE sets new limit of 5% for stocks' daily drops as of Wednesday - WAM

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DUBAI, March 17 (Reuters) - Shares in the United Arab Emirates stock exchanges starting from Wednesday will be allowed to drop a daily maximum of 5% from their previous day closing price, state news agency WAM reported.

It cited a decision by the UAE’s Economy Minister Sultan bin Saeed al-Mansouri as saying the stock market could increase the limit to 7% for select stocks based on criteria that need to be approved by the Securities and Commodities Authority (SCA). The minister is also the chairman of SCA.

The decision is valid as of Wednesday’s trading session until further notice from the authority, it said.

Stocks were allowed a daily 10% drop earlier.

The decision comes amid market volatility in regional markets due to the impact of the coronavirus outbreak and plunging oil prices.

Reporting by Nayera Abdallah, writing by Davide Barbuscia Editing by Chizu Nomiyama and Lisa Shumaker

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