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The value of securities traded in the first half of 2008 trebled compared to the first half of 2007 announced Tom Healy, Chief Executive of the Abu Dhabi Securities Exchange (ADX).
First Half Performance
Discussing the first half performance figures for the Exchange, Healy explained that the value of securities traded on ADX from 1 January to 30 June 2008 was AED163 billion (US$44 billion). This compares to AED51 billion (US$14 billion) in the same period last year. Accordingly, the number of shares traded and the number of trades also increased dramatically, by 93 per cent and 60 per cent respectively.
The most actively traded stock was Dana Gas, followed by Arkan, Aabar and RAK Properties.
“There are a number of reasons why ADX has witnessed such a huge increase in the amount of trading this year, the most of important of which is that we are seen as a stable and sustainable market, which gives investors confidence”, said Healy.
“Furthermore, our index is up by 9 per cent in the first half of this year, there are more listed companies and, alongside the Securities and Commodities Authority (SCA), we offer investors a transparent and well regulated market. That 24 out of 30 possible SCA awards for compliance went to ADX listed companies speaks volumes about the quality of our market.”
Broadening Investor Base
Mr Healy went on to say that the Exchange was actively encouraging foreign investors into the market as well as UAE nationals, “having a broader and more international investor base is important for the long-term sustainability of our market,” he said, “and we expect this number to increase as we continue to diversify our financial product offering.”
After UAE Nationals, UK investors were the most active in trading on ADX. UK investors now own AED18.2 billion (US$5 billion) worth of shares which is an increase of AED15 billion (US$4.1 billion) in the first six months of 2008.
Future Outlook
“As the Abu Dhabi Government continues to drive economic diversification and under its leadership, the economy goes from strength to strength, we see the outlook for ADX as very positive,” Mr Healy continued.
“In the near future, our priorities will be to develop the debt market, list Exchange Traded Funds (ETFs) on ADX, and develop a derivatives market.”
ADX serves the domestic cash equity market and has 65 listed companies with a market capitalisation of AED492 billion (US$134 billion).
