ID :
113263
Wed, 03/24/2010 - 16:00
Auther :
Shortlink :
https://oananews.org//node/113263
The shortlink copeid
ADX's performance to reflect Abu Dhabi's economic strength in 2010
Abu Dhabi, Mar 24, 2010 (WAM) - The projected positive performance for Abu Dhabi's economy in 2010 is to influence the performance of the Abu Dhabi Securities Exchange (ADX) according to recent reports that suggest an economic growth rate of 3% to 5% for the emirate during the year, and accordingly increasing the value of the listed companies participating in the economic development of Abu Dhabi, according to Rashed Al Baloushi, ADX's Deputy Chief Executive.
"The Gross Domestic Production for Abu Dhabi has increased from Dh519.9 billion in 2008 to Dh535 billion in 2009, while forecasts predict the figure to exceed Dh560 billion in 2010 according to reports," explained Al Baloushi who was attending the UAE Global Investment Forum that took place in the capital, Abu Dhabi, today.
The Deputy Chief Executive mentioned that all the indicators support the performance of ADX during 2010, including the exchange's Price to Earning (PE) ratio of 8.9 times on March 17, 2010, indicating 11% of investment returns, compared to the relatively lower interest offered through banks. Further, the market value of listed companies at present is approaching the book value, to the contrary of the norm 1:2.
Addressing the influence of international markets on ADX's performance, Al Baloushi emphasized that the global economy is heading towards recovery with the outlook for economic growth rates in 2010 amounting to 2% for the US, 0.7% for the EU, 10% for China and 7% for India. "This will positively influence the UAE capital markets given the increasing government spending and the low levels of interest rates across the globe," he said.
Al Baloushi explained that the exaggeration of media reports covering the debts of Dubai's companies has resulted in panic among local and foreign investors, although these reports had no influence on the investor confidence in Abu Dhabi's economy according to recent surveys carried out by ADX for 1700 local and foreign investors, indicating a 50% confidence rate in Abu Dhabi's economy compared to a negative -40% for the global economy.
He added that foreign investments will continue to play a strong role at ADX, where 7414 new foreign investors were registered at the exchange in 2009 to lift the total foreigners to 334,632 institutional and individual investors.
"Foreigners contributed by 35% of the total value of trading that amounted to about Dh140 billion in 2009, while Abu Dhabi's Department for Economic Development forecasts the growth of Foreign Direct Investment (FDI) in Abu Dhabi by 9% in 2010.
The Deputy Chief Executive emphasized the importance of establishing an official bonds market in the UAE given that the total amount of bonds and sukuks issued in the GCC in 2009 was about Dh278 billion, with Dh183 billion expected in the region this year. Meanwhile, the total value of bonds and sukuks issued in the UAE amount to Dh200 billion of which Dh44 billion were issued in 2009, and Dh13 billion are expected in 2010.
"The Gross Domestic Production for Abu Dhabi has increased from Dh519.9 billion in 2008 to Dh535 billion in 2009, while forecasts predict the figure to exceed Dh560 billion in 2010 according to reports," explained Al Baloushi who was attending the UAE Global Investment Forum that took place in the capital, Abu Dhabi, today.
The Deputy Chief Executive mentioned that all the indicators support the performance of ADX during 2010, including the exchange's Price to Earning (PE) ratio of 8.9 times on March 17, 2010, indicating 11% of investment returns, compared to the relatively lower interest offered through banks. Further, the market value of listed companies at present is approaching the book value, to the contrary of the norm 1:2.
Addressing the influence of international markets on ADX's performance, Al Baloushi emphasized that the global economy is heading towards recovery with the outlook for economic growth rates in 2010 amounting to 2% for the US, 0.7% for the EU, 10% for China and 7% for India. "This will positively influence the UAE capital markets given the increasing government spending and the low levels of interest rates across the globe," he said.
Al Baloushi explained that the exaggeration of media reports covering the debts of Dubai's companies has resulted in panic among local and foreign investors, although these reports had no influence on the investor confidence in Abu Dhabi's economy according to recent surveys carried out by ADX for 1700 local and foreign investors, indicating a 50% confidence rate in Abu Dhabi's economy compared to a negative -40% for the global economy.
He added that foreign investments will continue to play a strong role at ADX, where 7414 new foreign investors were registered at the exchange in 2009 to lift the total foreigners to 334,632 institutional and individual investors.
"Foreigners contributed by 35% of the total value of trading that amounted to about Dh140 billion in 2009, while Abu Dhabi's Department for Economic Development forecasts the growth of Foreign Direct Investment (FDI) in Abu Dhabi by 9% in 2010.
The Deputy Chief Executive emphasized the importance of establishing an official bonds market in the UAE given that the total amount of bonds and sukuks issued in the GCC in 2009 was about Dh278 billion, with Dh183 billion expected in the region this year. Meanwhile, the total value of bonds and sukuks issued in the UAE amount to Dh200 billion of which Dh44 billion were issued in 2009, and Dh13 billion are expected in 2010.
