STOCK ADX NEW   Abu Dhabi Securities Exchange
Abu Dhabi Securities Exchange hits the Dh2 trillion mark, and foreign funds and mega IPOs made the process easier. Image Credit: Supplied

Dubai: Powered by a series of hugely successful IPOs, Abu Dhabi Securities Exchange’s (ADX) market cap has hit the Dh2 trillion mark for the first time. The latest IPO, from ADNOC joint venture Borouge, was enough to get past the new threshold for the Middle East’s second largest stock market.

The exchange’s benchmark index - the FTSE ADX General Index - has gained 16 per cent this year, making it one of the best performing stock markets anywhere. It also comes at a time when global markets remain extremely sensitive to rate hikes and any talk about inflationary pressures. 

During the first quarter of 2022, ADX recorded an 87 per cent year-on-year increase in value of total trades. Traded values (buy + sell) on the exchange rose to Dh202 billion in Q1-2022 from Dh108 billion a year ago. The market value of shares owned by foreign investors shot up 163 per cent to Dh131 billion from Dh50 billion in Q1-2021.

Vijay Valecha

A series of IPOs and listings has helped ADX's market cap to post double-digit growth. The market cap has been bolstered by more than $5 billion in share listings over the past year. Meanwhile, the DFM index’s market capitalization increased 6.4 per cent to Dh437.4 billion. This showcases market participants’ confidence and a strong appetite for DFM’s trading and IPO opportunities.

- Vijay Valecha, Chief Investment Officer at Century Financial

"The 25 per cent year-to-date spike in the exchange’s market capitalization was bolstered by a spate of IPOs and listings over the past year - including Abu Dhabi Ports, Fertiglobe, ADNOC Drilling, Alpha Dhabi and Multiply Group," ADX said in a statement.

Last year, ADX's market cap more than doubled to Dh1.6 trillion, again fuelled by red-hot IPOs, including mid-sized listings on the 'Growth Market' (formerly known as the Second Market). These included those of Palm Sports, Zee Stores and Easy Lease - all three subsidiaries of IHC - and an Exchange Traded Fund (ETF).

The Dh2 trillion market cap has been 'supported by ‘ADX One,’ the exchange’s strategy to enhance liquidity through listing incentives, trading fees reductions and rolling out innovative products and services', according to a statement. The exchange’s benchmark index, the FTSE ADX General Index, has gained 16% this year, making it one of the best performing stock markets worldwide.

Making room for SPAC
ADX is the first bourse in the Middle East to come up with regulations for SPACS (Special Purpose Acquisition Company) and which led to the recent float of the first such IPO.