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Foreign Investors Buy 2.3 Billion Dirhams of Shares in ADX in February

Foreign investors’ purchases in February 2017 reached 2.306 billion Dirhams, representing %44.8 of total trades, whereas their sales stood at 2.158 billion Dirhams, representing %41.9 of total trades. Subsequently, the net foreign investment in February reached 148 million Dirhams.  Whereas institutional investments in February have reached 31.8 million Dirhams.

Index performance 

The general ADX index in February increased by %0.07 to 4552. The banking sector scored the highest growth rate at %2.49, followed by services sector at %1.9 and insurance sector at %1.8.

Meanwhile the energy sector dropped by %13.02, followed by consumer staples sector at %6.59, real-estate sector by %5.13, industry sector by %4.88, investment and financial services sector by %2.76; and telecommunication sector by %1.68.

The market capitalization of companies listed in ADX dropped by %0.44 at 436.465 billion Dirhams compared with 438.383 billion Dirhams in January.

Value of traded stocks in ADX reached 5.147 billion Dirhams compared with 7.741 billion Dirhams in January.

The number of traded stocks stood at 3.046 billion shares compared with 5.823 in January. Number of deals reached 40571 compared with 61907 in January.

The average daily volume in February reached 257 million Dirhams compared with 352 million Dirhams in January. The number of trading days stood at 20 against 22 in January. 56 companies were traded in ADX in February. 

Eshraq Properties shares were the most active in February with trades equivalent to 1.532 billion Dirhams, representing %30.7 of total trades, followed by First Gulf Bank (677 million Dirhams or %13.6); Al Dar  Properties at 522 million Dirhams (%10.5); ASMAK at 497 million Dirhams (%10); Etisalat at 415 million Dirhams (%8.3), and around 1.347 billion Dirhams for the rest of stocks (%27).

The real-estate sector had the lion share of trades with 2.227 billion Dirhams (%44.61) of total trades, followed by the banking sector with 1.332 billion Dirhams (%26.7); consumer staples sector with 554 million Dirhams (%11.1); telecommunications with 438 million Dirhams (%8.78); energy sector at 172 million Dirhams (%3.46); investment and financial services sector at 91 million Dirhams (%1.83); industry sector at 88 million Dirhams (%1.77); insurance sector at 57 million Dirhams (%1.15), and services sector at 30.7 million Dirhams (% 0.61).

About Abu Dhabi Securities Market (ADX)
Abu Dhabi Securities Exchange (ADX) was established on November 15 of the year 2000 by Local Law No. (3) Of 2000, the provisions of which vest the market with a legal entity of autonomous status, independent finance and management.  The Law also provides ADX with the necessary supervisory and executive powers to exercise its functions.

These functions are:

•Provide opportunities to invest savings and funds in securities in order to benefit national economy. 

•Ensure the soundness and accuracy of transactions and to ensure the interaction between demand and supply in order to determine prices. 

•Protect investors through establishing fair and proper dealing principles between various investors. 

•Impose stringent controls over securities transactions to ensure sound and conduct procedure. 

•Develop investment awareness by conduction studies and issuing recommendations in order to ensure that savings are invested in productive sectors. 

•Ensure financial and economic stability and develop trading methods in order to ensure liquidity and stability of prices of Securities listed on the market.
ADX is a market for trading securities; including shares issued by public joint stock companies, bonds issued by governments or corporations, exchange traded funds, and any other financial instruments approved by the UAE Securities and Commodities Authority (SCA). 

At the end of 2015, ADX had 71 listed securities with a market capitalization of AED 447 billion (USD 122 billion).  Those securities include 66 public joint stock companies, 2 private joint stock companies, 1 Exchange Traded Fund (ETF), 1 Abu Dhabi Government

Fund, and 1 convertible bond.   ADX listed companies are allocated in nine sectors; Banking, Real Estate, Consumer Staples, Investment and Financial Services, Industrial, Telecommunication, Services, Energy, and the Insurance sector.  

ADX allows for investors to trade through any of the registered brokerages at the exchange through advanced electronic automated services. ADX has also signed a number of agreements with major financial institutions to provide for custody services, including renowned international corporations; namely the National Bank of Abu Dhabi (NBAD), HSBC, Standard Chartered, Deutsche Bank and Citi Banking Group. 

ADX goals are in line with Abu Dhabi Government Economic Vision 2030.  The 2030 economic plan plays a vital role in ADX strategy since it places the financial market in the context of economic and social development.  The development would be through diverting savings towards investment in the various economic sectors and developing the financial infrastructure of Abu Dhabi to transform the emirate into one of the leading finance and services center in the region.

In 2014, ADX was upgraded to ‘Emerging Market’ status by both MSCI index (Morgan Stanley Capital International) and S&P Dow Jones, thus greatly increasing the likelihood of inward global investment flows. ADX was already classified as an Emerging Market by FTSE in 2009 and in 2011 by S&P and Russell Investments.  

In 2015, ADX won the Most Innovative Exchange GCC 2015 Award.  The award, given by Capital Finance International, celebrates achievement, innovation from an international perspective, recognizing organizations with innovative technology products backed by strong management, excellent service standards and sound business models. Capital Finance International is a leading print journal and online resource reporting on business, economics, and finance.

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