ADX market cap exceeds Dh500bn as index continues to advance

ADX general index has risen more than 13% in the first eight months of 2018

An investor follows the stock market developments on a screen board at ADX in Abu Dhabi. EPA 

Market capitalisation of the companies trading on the Abu Dhabi Securities Exchange topped Dh500 billion as its benchmark index continues to outperform most regional peers despite uncertainties clouding global economic growth prospects.

The combined market value of the listed companies on ADX reached Dh526bn at the end of August, with its main gauge, ADX general index up by 13.4 per cent since the beginning of 2018, the bourse said yesterday.  

The market cap of domestic public companies increased to Dh495bn at the end of the first eight months of the year, a 7.5 per cent jump from Dh461bn at the start of 2018. The value of private listed companies climbed to Dh7bn, compared to Dh2.8bn for the period, marking a 145 per cent surge, while capitalisation of foreign public companies reached Dh24bn, according to ADX.

"Continuing efforts towards the accomplishment of the organisational structure and modernisation of working mechanisms and trading systems, made ADX the interest of domestic and foreign institutions during the recent period," said ADX chief executive, Rashed Al Blooshi. "Thus ADX achieved this remarkable growth in ADX general index, the market capitalisation of listed companies, the company profit and the value of cash dividends distributed to companies' shareholders."

About 271 investment institutions entered the exchange during the first half of the year, bringing the number of domestic and foreign investment institutions on ADX to more than 7,900, of which 2,008 are domestic and 5,913 are foreign.

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Investors have flocked to ADX this year, attracted by healthy quarterly results of listed companies and government-led stimulus measures. Higher earnings from the UAE's banks and the good performances of listed energy companies have also helped investor
sentiment.

"The shareholders of ADX listed companies have benefited the most off their presence in ADX, after the exchange recorded one of the highest dividends yields in the world by 5.8 per cent; a distribution of more than Dh23.4bn in cash dividends to around 406,000 [shareholders] in 2018," Mr Al Blooshi said.

“This strengthens the exchange’s position as a preferred listing destination and the high levels of competitiveness.”