Additional stock worth AED6.3 billion ($1.71 billion) became accessible for a new group of both local and international investors during the first half, thus creating further scope for increased trading and liquidity, said Abu Dhabi Securities Exchange in a report on its performance for the six months ending June 30.

 

During the period, 1,723 new investors traded on ADX for the first time, of which 1,497 (87 percent) came from the retail community, further evidence of increased interest from a broader range of investors and providing a further boost to liquidity, stated the report.

 

The largest proportion of expatriate investors by country were from the UK, who traded AED5.2 billion of shares in the period, followed by those from the US (AED4.1 billion) and then Luxembourg (AED1.2 billion), it added.

 

The ADX report focuses on its efforts in supporting Abu Dhabi’s economy through the development of its capital markets, building a strong platform for growth and foreign investment as the easing of Covid-19 restrictions continues.

 

CEO Khaleefa Al Mansouri said the Exchange had coordinated closely with its listed companies and other stakeholders to build a robust, modern and increasingly international capital market, an essential pillar of any economy. 

 

"Especially given the obvious challenges, our performance demonstrates that ADX is delivering on its key strategic objective of becoming more liquid and more accessible to a broader mix of investors," he noted.

 

During the first six months, four companies raised their limits on foreign ownership: Methaq Takaful Insurance Company upped its limit to 40 per cent from the present 25 per cent; Wahat Al Zaweya Holding went from 0% to 49 per cent; Agthia Group increased its limit from 0% to 49 per cent; and Abu Dhabi Islamic Bank took its permitted level of foreign ownership from 25 to 40 per cent.

 

"This means that since the end of 2019, an additional AED6.3 billion of stock in these companies is currently accessible to foreign investors, across three separate sectors," remarked Al Mansouri.

 

In total, 55 companies on ADX are currently accessible to foreign investors, representing 80 percent of the total exchange, he added.

 

In addition, on July 1, Abu Dhabi National Energy Company (Taqa) completed the merger of its energy and water assets with certain of Abu Dhabi Power’s. The transaction added more than AED100 billion to ADX’s total market capitalisation, thus increasing it by 20 per cent to AED607 billion at time of writing. Taqa is now one of the largest companies on ADX.

 

ADX also saw increased levels of interest from the expatriate investment community, with a 25 percent jump in the number of non-UAE nationals registering to invest in ADX compared to H1 2019.

 

Looking ahead, Al Mansouri said: "We can’t predict when the world will turn the corner, but there are significant grounds for optimism in Abu Dhabi and at ADX. Our performance so far this year shows that we are as well placed as any exchange in the world to enable investors to take advantage of improving market conditions, by increasing access, liquidity and the range of products available, an essential component of a healthy and growing economy."

 

"We expect these to include ETFs and REITs, as well as others, on a sophisticated and innovative digital platform, and with greater levels of transparency," stated the top official.

 

"We, therefore, remain confident of meeting our objective of being "Your Market of Choice", one that shapes the 20s, and that supports the achievement of Abu Dhabi’s strategic plans for a diversified economy and a sustainable future," he added.-TradeArabia News Service