DFM Adjusts GFH Equity Futures Contracts
Dubai Financial Market announces adjustments to GFH equity futures in response to dividend distribution.
Summary
Dubai Financial Market (DFM) has announced adjustments to its GFH equity futures contracts following shareholder approval of a cash dividend. The adjustments will take effect on March 25, 2025, and involve changes to the contract prices to reflect the dividend distribution.
On March 24, 2025, the Dubai Financial Market (DFM) announced pivotal adjustments to its GFH equity futures contracts. This move comes in response to the shareholders' approval of a cash dividend payment of AED 0.0602 per share. Effective March 25, 2025, the adjustments will align with the Ex-Day for the distribution of the declared dividends by GFH.
Specifically, the contracts affected include the GFH FUT series for April, May, and June 2025. The adjustment ratio applied to these contracts is 0.947652, leading to new reference prices for trading on March 25, 2025. For instance, the GFHJ25 contract, initially priced at 1.153, will be adjusted to 1.093. Similarly, the GFHK25 will move from 1.157 to 1.096, and GFHM25 from 1.162 to 1.101.
These adjustments are crucial for maintaining the integrity and attractiveness of the DFM's equity futures market, ensuring that the prices reflect the underlying value post-dividend distribution. Such strategic moves not only safeguard investor interests but also enhance market transparency and efficiency.
DFM's proactive approach in adjusting these contracts underscores its commitment to aligning with global best practices and regulatory standards. The market's responsiveness to dividend declarations is a testament to its robust framework designed to cater to the dynamic needs of its stakeholders.
Given the calculated adjustments and the strategic positioning of the DFM, investors should consider this a positive signal. The alignment of futures contracts with dividend payouts enhances the appeal of these instruments. Therefore, a buy recommendation is suggested for investors looking to capitalize on the adjusted contract prices and the expected market stability.
Source
Summary
The Dubai Financial Market (DFM) announced an adjustment to its Equity Futures Contracts for GFH due to a cash dividend payment of AED 0.0602 per share approved by GFH shareholders. The adjustment will be effective from March 25, 2025, which is the ex-dividend date. The contracts affected are GFH FUT – April 2025, GFH FUT – May 2025, and GFH FUT – June 2025. The adjustment involves a ratio of 0.947652 applied to the previous day's settlement price to determine the new reference price for trading on March 25, 2025. Further details are available on the DFM website. The information provided is subject to change and should be cross-referenced with the Dubai Financial Market Regulated Derivative Contract Trading Regulation in case of discrepancies.
