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Abu Dhabi Securities Exchange (ADX) Chief Executive, Rashed Al Blooshi, said that the accumulated successes of ADX enabled it to move into a new regional leadership. It also allowed it to invest in digital specialism based on transparency and quality.
His comments came during a seminar entitled “Opportunities of Business & Investments” organized by the Abu Dhabi Chamber of Commerce & Industry and the Pakistan Business Professional Council. ADX Chief Executive illustrated the investment opportunities that ADX provides for foreign investors, including Pakistani investors.
ADX Chief Executive highlighted that the market value of shares owned by foreign investors in ADX has reached 41.5 billion Dirhams by end of 2016, increasing by around %6.5 from end of 2015 when it equaled 39 billion Dirhams. While the market value stake of foreign investors represented %9.5 of total market value of local listed companies, which accumulated around 444 billion Dirhams by end of 2016.
“Year 2016 has witnessed further foreign liquidity, a matter that helped improving the stock prices and increased the market value of shares owned by foreign investors. This means that foreign investors are more convinced about the opportunities and investment revenues at ADX as most of foreign cash entered the market during the second half of 2016.” Added Al Blooshi
ADX Chief Executive added:” ADX listed companies enjoy a competitive price-earnings ratio (P/E Ratio) and high returns compared to other Exchanges with 22.7 billion dirhams of cash dividend distributed in 2016 which is an increase of around 9% from 2015 where the cash dividend distributed was around 20.8 billion Dirhams.”
“The total number of Pakistani investors in ADX by 2016 reached 5201 investors, while their total value of trades in the past 3 years reached 1.3 billion Dirhams, and the market value of shares they own reached 90 million dirhams, an increase of around 3% from 2015” said Al Blooshi.
“There are similarities between ADX and the Pakistani stock market - as both work hard to attract foreign investments within a national-comprehensive framework – committed to international regulations. This would enable better cooperation between ADX and the Pakistani stock market on many levels” ADX Chief Executive added.
“Since its inception in 2000, ADX has progressed through three growth stages governed by the goal of moving savings into the stock market and create investors qualified to deploy safe local and foreign investments,” reiterated Al Blooshi.
Al Blooshi explained that the three stages included the solid foundation, a promotion based on strong national economy, and improvement of the regulatory and technical infrastructure. This enabled the Exchange to be upgraded into many global indices, last of which was MSCI and S&P Dow Jones.
“In ADX we have reached the fourth stage now which will enable us to become fully digitalized by 2020, and through which we will bring on the short-selling service that will deepen liquidity and reduce speculative trading.” said Al Blooshi.
ADX Chief Executive underlined that ADX main strategic goals for the future are to increase market cap and product range, attract & activate wider range of investors in the framework of enhancing the competitive environment for doing business and attracting investment into the Emirate as part of ADX commitment to AD Plan.
“ADX has reached %180 growth in trade values since 2011, while the market capitalization reached 475 billion Dirhams at end of 2016 with a growth rate of 5.1%. This growth goes in parallel with foreign direct investment growth in the Emirate of Abu Dhabi which increased by %8 in 2016 with 95 billion Dirhams distributed mainly on transformative industries, real-estate, finance and insurance,” added Al Blooshi.
