Five main pillars that supported the recovery of local financial markets.
Abu Dhabi market listings… Dubai government decisions… The launch of Expo 2020… Oil price hikes… Vaccination success.
– Abu Dhabi index rises by 68% and Dubai by 28% within a year.
Analysts: 2021 is an exceptional year for all UAE stock market indices.
From Bassam Abdel Samie.
ABU DHABI, December 30 / WAM/ The trading screens of the Emirati financial markets turned green in most of the sessions of the year 2021, as record rises were the most prominent case at the level of indicators, company prices and the market value of listed companies, exceeding the market value of the local financial markets two trillion dirhams, of which 1.626 trillion dirhams The Abu Dhabi Financial Market, and the market value of the Dubai Financial Market is more than 411 billion dirhams, according to data from the Abu Dhabi and Dubai markets.
By the end of the day, the Abu Dhabi Financial Market index closed at 8,488 points, an increase of 3,443 points during 2021 and by 68%, compared to the end of 2020, recording the highest rise since 2005, while the Dubai Financial Market index closed its last session in 2021 at the level of 3196 points, It increased by 704 points during 2021 and by 28%, compared to the end of 2020, registering the highest rise since 2013.
Five main pillars strengthened the recovery of local financial markets during 2021, and they included: the initial offerings of the Abu Dhabi market for a number of companies, the success of the vaccination campaign, the full opening of the economy, the launch of Expo 2020 Dubai, and the rise in oil prices, as well as talk about the offering of 10 different companies in the Dubai market during next period .
In this report, the Emirates News Agency “WAM” monitors the general features of local financial market trading during the year 2021, and the vision of specialists in the sector, who indicated that local financial markets have overcome the effects of the pandemic and its transformations, and their ability to face challenges and crises with the support of the national economy, pointing to the occurrence of some The fluctuations during the second half of December due to the mutant “Omicron” and its effects on the global financial markets.
The year 2021 witnessed the start of trading the first real estate investment funds “REITs” in the Dubai market last January, while Alpha Abu Dhabi Holding was listed on the Abu Dhabi market last June, and the market value of the Abu Dhabi market exceeded one trillion dirhams for the first time.
And the decision of the Abu Dhabi Securities Exchange entered, reducing trading commissions on all deals by 50%, as of Tuesday, September 1, and trading hours in the Abu Dhabi and Dubai markets were extended for an additional hour, provided that trading opens at 10 am and continues until At 3:00 pm, starting from the 3rd of last October, the extension of trading hours aimed to harmonize the local trading markets with the global financial markets and to increase the liquidity of the markets by attracting a wider segment of foreign investors.
The month of December recorded the rise of the Abu Dhabi market index for the first time in its history to 9000 points, and also witnessed the announcement of the new trading hours for the year 2022, starting from Monday, January 3 to Friday, from ten in the morning until three in the afternoon.
Both the Abu Dhabi Financial Market and Dubai Financial Market are regulated by the UAE Securities and Commodities Authority, which is a federal authority established under Federal Law No. /4/ of 2000 regarding the Emirates Securities Authority and Market, and the two markets cooperate closely with the Securities and Commodities Authority to protect investors Providing the best trading environment through several initiatives.
With the end of the 2021 session, the local financial markets will start trading in 2022 from Monday, January 3 to Friday, for five daily trading hours from ten in the morning until three in the afternoon.
Iyad Al-Buraqi, General Manager of Al Ansari Financial Services Company, said: The year 2021 is one of the best years witnessed by the UAE financial markets, as trading recorded record increases in the level of indices, prices of listed companies and the market value of companies. Abu Dhabi market exceeded the 9,000 points barrier, and the market value exceeded 1.62 trillion dirhams. While the Dubai index recorded remarkable activity and record highs, especially in the last quarter of the year.. The listings in the Abu Dhabi and Dubai markets during 2021 also boosted trading operations and stimulated investors’ appetite, in addition to supporting the leading shares of the real estate, banking and telecom sectors.
Wadah Al-Taha, a member of the National Advisory Board of the British Investment and Securities Institute in the UAE, said that 2021 was a record year, not only in facing the repercussions of the global health crisis, but in overcoming the fear of individual users who exaggerated their selling operations, describing 2021 as the year of rebound and recovery for the financial markets. local.
He pointed out that the Abu Dhabi market is the best in the Gulf region during the year 2021, supported by great liquidity and distinguished listings, not only at the historical level, but in terms of governance practices and the degree of disclosure and transparency, in addition to the strong link between the Abu Dhabi market with American markets and oil prices, which creates a state of stability, as well On the positive effects of the listed stocks, which provided investors with a greater opportunity to diversify investment portfolios, which led to a lower risk as a diversification management strategy.
He noted that the decisions of the Dubai government succeeded in a great way in containing the repercussions resulting from the pandemic during 2020, and these steps led to a state of proactivity resulting from optimism, which was reflected in many stocks and the form of market cohesion even with the recent fluctuations at the end of the year as a result of the “Omicron” mutator.
He expected a rise in optimism and positive indicators during the first quarter of 2022, especially from the announcement of companies’ results, hoping that IPOs would play an economic and social role in emerging markets that give a model for the world.
For his part, Mohamed Ali Yassin, CEO of strategies and clients at Al Dhabi Capital Company, believes that the year 2021 was distinguished in terms of performance, whether trading volumes, market value, or in terms of index movement, as the Abu Dhabi General Market ends with gains for the index exceeding 68% within a year.
He pointed out that the Dubai Financial Market achieved profits during the months of November and December in the index similar to what it achieved during the first nine months of the year, pointing out that 2021 was a positive year for the local financial markets.
He pointed out that several factors contributed to enhancing the performance of the local financial markets during 2021, including: the UAE’s ability to fully open the economy, which boosted economic activity, high oil prices and its stability at good levels above the rates required to achieve surpluses in government budgets, and the decline of the “Covid” wave. -19″ mainly during the second and third quarters of the year, which led to a high level of confidence in the services sector, with tourism and hotels at the fore, in addition to the impressive launch of Expo 2020, which had a significant impact on optimism among investors.
The first sessions.
The first trading session of 2021 saw the Abu Dhabi market index rise 5079 points, recording an increase of 0.67%, and the Dubai market index closed above 2506 points, with the support of the real estate and investment sectors, and the Abu Dhabi market had closed on December 31, 2020 at 5045 thousand points, The Dubai market closed at 2491 points.
On January 18, Dubai Financial rang the bell to start trading and start trading the first real estate investment funds “REITs” in the market, which is the “Al Mal Capital REIT” fund, in a step in line with the market’s strategy to diversify products and asset classes and provide various investment opportunities for its huge and growing base of local and international investors. Statistics indicate that the real estate investment fund sector has recorded an increasing growth in recent years, with a market value of nearly two trillion dollars, and these funds are traded in 35 countries around the world.
On the first of April, the UAE markets started the first sessions of the second quarter on a rise, after the Abu Dhabi market index rose by about 0.5% to reach the level of 5941 points, supported by the share of International Holding, which continues to rise to record levels and the rise of the Emirates Etisalat Group share by about 2%, exceeding 22 levels The general index of the Dubai market rose by 0.3% to reach the level of 2557 points, supported by the rise of Emaar Properties.
The UAE financial markets received the month of June, with the general index of the Abu Dhabi Financial Market rising by 0.8%, recovering the levels of 6600 points, while the Dubai index rose by 1.4% to close at 2837 points, recording the highest daily closing in 16 months.
On June 27, 2021, the general index of the Abu Dhabi market rose 2%, regaining the levels of 6,700 points, at a time when the market value jumped above one trillion dirhams for the first time in its history. After ADNOC Distribution in 2017, in addition to the rise in the shares of International Holding to its highest level ever, which led to an increase in the market value of the Abu Dhabi market.
the other half.
In the early July session, the general index of the Abu Dhabi Financial Market reduced its gains to less than 1% to close at 6900 points, after it approached the 7000 points in the middle of the session for the first time in its history, rising by more than 2%. It jumped to levels of 131 dirhams before reducing its height to 123 dirhams per share at the end of the same session.
On the first of August, the Abu Dhabi market breached at the beginning of the August trading levels of 7500 points for the first time in its history before reducing its heights at the end of the first session of August near the levels of 7400 points, and by the end of August, the general index in the Abu Dhabi market rose by about 5% during August It rose for the 11th consecutive month, and the general index of the Dubai Financial Market rose by about 5% during the month of August to close at 2,900 points for the first time in two years.
In early September, the UAE markets closed in contrast, as the Dubai Financial Market index closed at 2,916 points, while the Abu Dhabi market index closed down 7649 points. From Tuesday, September 1, the reduction in trading fees in September is the third that the market has done in less than three years and the second during 2021.
The last quarter.
At the beginning of October, the general index in the Abu Dhabi and Dubai markets fell by 0.3% in the Abu Dhabi market to close above the levels of 7,700 points, while the Dubai index closed at 2,800 points, a decrease of 0.8%, and the decision to extend trading hours for an additional one hour came into effect with the opening of trading. At 10 am until 3 pm starting from October 3, the decision to extend an hour came after the closing was at 2 pm in order to harmonize the trading hours in the market with many international stock markets.
At the beginning of November, the general index of the Abu Dhabi Financial Market rose by 0.8% to close above 7900 points and the support came primarily from the First Abu Dhabi share, which rose by more than 2%, in addition to the Etisalat share, which rose by more than 1% to reach its highest level ever. After the group announced a 3% growth in its profits in the first happy months of this year and amended the financial performance guidance for the whole of 2021, while the general index rose by 0.6%, recording its highest close since mid-September, and the market witnessed large deals on Damac Properties shares after the implementation of Maple. invest has acquired 800 million shares of the company’s shares, with a value of more than 1.1 billion dirhams.
With the first trading sessions in December after the fiftieth National Day holiday, the general index of the Abu Dhabi market jumped by more than 200 points, exceeding the levels of 8,700 points for the first time in its history, to record a new closing.
During the trading of Wednesday, December 8, the Abu Dhabi Stock Exchange index broke the 9000-point barrier in a trading session, before declining slightly by 0.3% at the level of 8953.95 points at the close of trading, due to the accrued profit-taking operations.
Today, Thursday, the Abu Dhabi General Market index closed its last session for 2021 at the level of 8488 points, an increase of 0.45%, with a trading value that exceeded 1.671 billion dirhams for about 499.9 million shares, while the Dubai market closed at 3195 points, an increase of 0.68%, with a trading value of 175.7 million dirhams more than of 79.215 million shares.
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