Today's Edition
A. SREENIVASA REDDY (ABU DHABI)
The combined market value of all shares listed on the Abu Dhabi Securities Exchange (ADX) crossed the Dh3 trillion milestone during Monday’s trading.
At the close of trading at 3pm, the market capitalisation of ADX-listed companies stood at Dh3.007 trillion, marking a significant achievement for the exchange.
The ADX market cap crossed Dh2 trillion mark in June 2022 and it took less than three years to hit the next milestone at 3 trillion.
ADX has witnessed substantial growth in recent years, driven by a robust economy, rising foreign investment, and a surge in initial public offerings (IPOs). In 2024, 28 new securities were listed, bringing the total number of listed securities to 187. The exchange ranked among the top five global exchanges in terms of IPO proceeds, with offerings raising approximately $3.35 billion. It captured 38% of total IPO proceeds in the Middle East and 80% of IPO proceeds within the UAE in 2024, according to a Wam report on the year’s performance.
Maintaining its position as the second-largest bourse in the region, ADX also reinforced its ranking among the world’s top 20 stock exchanges.
The collective market capitalisation of ADX and DFM surged 7.14% year-on-year to Dh3.90 trillion in 2024, with Abu Dhabi’s market cap alone standing at Dh2.99 trillion as of December 31, 2024, said Vijay Valecha, Chief Investment Officer at Century Financial.
Reflecting on Monday’s trading session, Valecha noted that property stocks on the Abu Dhabi bourses saw a substantial rally. Shares of Aldar Properties, the largest listed developer, surged 6.784% after reporting a 47% increase in net profit to Dh6.5 billion in 2024. Aldar also overtook International Holding Company (IHC) as the most traded stock in terms of both value and volume.
Other stocks that contributed to the ADX Index’s gains on Monday included Al Ain Ahlia Insurance Company, which rose 9.091%, RAK Properties, up 5.939%, Abu Dhabi National Company for Building Materials, which gained 3.810%, and Sharjah Cement & Industrial Development Company, up 2.808%.
Overall, the ADX index has risen 3.1% over the past 52 weeks and is currently trading just 1.9% below its 52-week high of 9,813.60, recorded on March 18, 2024, Valecha said.
The UAE’s stock market has witnessed a wave of high-profile IPOs, significantly bolstering investor confidence, said Valecha. He added: “Government initiatives to increase foreign ownership limits in listed companies have attracted more international capital. These factors, along with the broader economic recovery and growth prospects, are driving positive market sentiment and propelling Abu Dhabi’s stock market to new highs.”
ADX’s consistent ranking among the world’s leading stock exchanges reflects its well-regulated, investor-friendly environment. “This milestone enhances the exchange’s reputation and boosts investor confidence, paving the way for sustained growth and further capital market development in the UAE,” said Samer Mardini, Chief Investment Officer at Yorklyn Asset Management.
