UAE Stock Markets See Dh3.62 Billion Liquidity Boost Following MSCI Review
Dubai, UAE - November 24, 2023 - UAE stock markets experienced a notable surge in liquidity today, reaching Dh3.62 billion,following the implementation of the MSCI (Morgan Stanley Capital International) review. The positive market response was coupled with varied performance across sectors and regional Arab exchanges.
The MSCI review, a key benchmark for international investors, resulted in adjustments to index weightings, prompting increased trading activity.This influx of liquidity benefits listed companies by enhancing market depth and possibly attracting further foreign investment. The Abu Dhabi Securities Exchange (ADX) and the Dubai Financial Market (DFM) both saw increased investor participation.
Alef Education Holding shares led gains, rising the maximum allowable amount to 1.14 dirhams.Other notable increases included two Point Zero, up 4.2%, Gulf Cement by 2.6%,and NMDC Energy by 2.5%. Two Point Zero Group recently completed procedures for increasing its capital by issuing and listing 23.4 billion new shares, finalizing the acquisition of all shares of Two Point Zero Holding RSC Limited.
Conversely, subscription rights of Abu Dhabi Commercial Bank shares experienced the largest decline, falling 8.6%, followed by Ras Al Khaimah Ceramics (down 6.05%), Abu Dhabi National Hotels (down 4.9%), and Alpha Dhabi Holding (down 3.5%). Eshraq Investment shares decreased by 1.4% to 0.500 dirhams, while ADNOC Gas shares remained stable at 3.28 dirhams.
Across the broader Arab region, performance was mixed. saudi Arabia’s main index fell 1.4 percent, impacted by declines in Al Rajhi Bank (down 2.6%) and Saudi Aramco (down 1.4%). Qatar’s index rose 0.4 percent, supported by Qatar Islamic Bank’s 1.3 percent increase. Bahrain, Oman, and Kuwait also saw modest gains of 0.3 percent, 0.7 percent, and 0.1 percent respectively.Egypt’s leading index fell 1.8 percent, with Eastern Tobacco Company declining 6.3 percent.
In Jordan,the stock exchange closed down 0.03 percent to 3,433.25 points, with a trading value of ten million dinars ($14.1 million). Arab Bank shares fell 0.29 percent, while phosphate mines shares rose 0.59 percent and oil refinery shares increased 1.4 percent.