Local equity liquidity exceeds AED 2.3 billion

ADNOC Gas earns AED 33.8 billion on first day of listing on Abu Dhabi market

The Abu Dhabi Securities Exchange closed at 9758 points. Archival

Local equities attracted liquidity exceeding AED 2.3 billion during yesterday's trading (the first session of the week), through the trading of 543.52 million shares, through the execution of 27.51 thousand transactions, coinciding with the first listing day of ADNOC Gas' shares, yesterday, which rose to the level of AED 2.81, recording a growth of 18.6% compared to the offer price, and trading more than 276 million shares.

ADNOC Gas extended gains and gained a market capitalization of 33.8 billion dirhams on the first day of listing on the Abu Dhabi Securities Exchange. The market capitalization of ADNOC Gas jumped from AED 181.9 billion at listing to AED 215.6 billion at the end of yesterday's session. ADNOC Gas closed at the close of yesterday's session at AED 2.81, up 18.6%, compared to the final offering price of AED 2.37. On the first trading day, the stock traded 276.2 million shares, worth AED 781.9 million through 8921,<> executed trades.

ADNOC Gas' shares began trading on the Abu Dhabi Securities Exchange (ADX) yesterday, following the successful completion of the largest ever initial public offering (IPO) and the world's largest IPO so far this year.

The IPO, which raised total revenues of AED 9.1 billion through the offering by Abu Dhabi National Oil Company (ADNOC), a minority stake representing approximately 5% of the company's total issued share capital, saw the strongest ever demand for an IPO in the UAE, with total demand across all tranches reaching more than AED 450 billion, exceeding the overall target value by almost 50 times.

The Abu Dhabi Securities Exchange index was down 0.7% at 9758,1 points, with trades worth AED 9.0 billion. The Dubai Financial Market Index was down 9.3354% at 304,<> points, with trades totaling AED <> million.

In turn, financial analysts confirmed to Emirates Today that "the impact of the crisis of the collapse of Silicon Valley Bank, which specializes in providing loans to technology companies that suffer a crisis due to the continued raising of interest rates, will not affect the local stock markets, which contain listed companies classified as one of the strongest regionally and globally, which are supported by the optimistic outlook for the country's economy and the succession of major government offerings."

Financial analyst Waddah Al-Taha said that «this crisis will not be affected by the local stock markets, especially in light of the presence of a strong financial system in the UAE and closely monitored and follows all measures that immunize it from any crisis», noting that this contributed to increasing the attraction of foreign investors to the country and its financial markets, which are witnessing the escalation of strong offerings.

The general manager of Truth for Economic and Management Consulting, Reda Musallam, added that "the crisis of the American bank occurred within the limits of the American technology sector, and did not extend to any other major economic sectors," noting that in light of the measures that the UAE always takes for the safety of the financial and banking sector, the economy is "immune" from those crises resulting from the continuation of monetary tightening policies, and then raising interest rates.

Raed Diab, Vice President of Research and Investment Strategies at KAMCO Invest, said: "It is not expected that there will be major repercussions of the collapse of the US Silicon Valley Bank on the UAE banking sector, its shares or even the local capital markets in general." He pointed out that the banking sector in the UAE is the largest in the Middle East and has the largest share of assets in the region, in addition to sufficient liquidity reserves within local and international standards.