Foreign inflows into ADX hit a four-year high in 1Q

Foreign investors piled into Abu Dhabi equities in 1Q, pushing net foreign inflows up 151% y-o-y to AED 8.5 bn — the highest in four years, ADX Group CEO Abdullah Salem Alnuaimi told Bloomberg. Foreigners accounted for 42% of total market activity. While the Abu Dhabi exchange was among the many victims of the global selloff this week, its benchmark index closed 0.65% up yesterday. It’s down 3.1% YTD.

REFRESHER- The surge followed a sweeping modernization in February that saw the ADX spin off its clearing and custody functions, roll out a faster trading platform tailored for high-frequency flows, and broaden its pipeline of listings — including ETFs and early-stage firms. “Our upgraded trading system aims to enhance performance by 400%,” Alnuaimi said. “In 2025, we plan to add new trading features, investment products, and services. We also want to welcome new trading participants.”

More 1Q numbers to watch: Total trading volumes jumped 39% by shares and 41% by transactions in the first quarter of the year, despite the benchmark index lagging peers. The ADX now has 16 ETFs covering 10 markets, bonds, and global sukuks, with the ETF market cap more than doubling y-o-y to AED 784 mn in 1Q.

Small players got a bigger slice: The exchange’s Growth Market, which lets companies list without a traditional IPO, saw a 34% increase last year and now hosts 14 firms in emerging sectors like health tech and sports.

MARKETS THIS MORNING-

Asian markets are a sea of red amid broader investor concerns over the global growth outlook amid an uncertain policy environment. Losses were led by Japan’s Nikkei, which is down 5.5%, while South Korea’s Kospi fell 1.6%, and China’s CSI 300 dipped 0.1%.

Meanwhile, Wall Street futures indicate another sell-off later today to end a volatile week.

THE CLOSING BELL-

The ADX rose 0.7% yesterday on turnover of AED 1.7 bn. The index is down 3.1% YTD.

In the green: RAK Co. for White Cement & Construction Materials (+6.5%), Abu Dhabi Ports Company PJSC (+6.5%) and Burjeel Holdings (+6.1%).

In the red: Phoenix Group (-5.3%), Hayah Ins. (-3.1%), and Abu Dhabi Aviation (-2.9%)..

Over on the DFM, the index rose 1.7% on turnover of AED 922.7 mn. Meanwhile, Nasdaq Dubai was up 1.5%.

CORPORATE ACTIONS-

#1- Alpha Data has appointed BHM Capital Financial Services as its liquidity provider for shares traded on the ADX, according to a disclosure (pdf) to the ADX. The agreement, effective 10 April, mandates that BHM will improve trading liquidity by offering bid-ask quotes for the firm’s shares, which went public on the ADX in an IPO last month.

#2- Healthcare giant Pure Health Holdings will distribute AED 343.1 mn in dividends for 2024, equivalent to 20% of its net income, following board approval, according to an ADXdisclosure (pdf).

#3- Borouge kicks off share buyback with nearly 30 mn shares repurchased: Borouge has bought back a total of 29.5 mn of its own shares — around 0.0981% of its subscribed capital — at an average price of AED 2.595 per share, according to ADX disclosures here (pdf) and here (pdf). The repurchases were carried out across two open-market transactions on 8 and 9 April as part of Borouge’s newly launched buyback program, with Al Ramz Capital executing the trades.

Background: Earlier this week, Borouge shareholders signed off on a 2.5% share buyback program, ahead of the company’s planned USD 60 bn merger with Borealis and Nova Chemicals. According to the latest filings, 721.9 mn shares remain available for repurchase under the mandate, pending regulatory approval.

#4- Sharjah Cement and Industrial Development approved the distribution of AED 30.4 mn in dividends for 2024, equivalent to 5 fils per share, according to an ADX disclosure (pdf). The paid amount represents 5% of the company’s capital.

#5- Adnoc Logistics and Services approved the distribution of AED 1 bn in dividends for 2024, according to an ADX disclosure (pdf). The company will pay a final dividend of AED 501.3 mn for 2024. The total payout represents 7% of the company's share capital, or 13.6 fils per share.