Abu Dhabi index to list Japan, Taiwan ETFs by year-end

The Abu Dhabi Securities Exchange (ADX), in the midst of a rebranding drive to lure foreign firms, said on Sunday that exchange traded funds (ETFs) from Japan and Taiwan could list on the index by year-end.
ADX Chief Executive Tom Healey said regulations relating to ETFs -- funds listed on stock exchanges that offer investors exposure in underlying shares or other assets -- are being finalised, paving the way for their listing.
"The best way to attract international companies to list on ADX is through ETFs. Foreign companies can then tap the pool of available capital here," Healey told reporters.

"We are in advanced talks with companies in Japan, Taiwan and Pakistan to list ETFs here," he said without giving details.
The Taiwan stock exchange said last month that Polaris Securities could launch the first ETF on the exchange as early as June.

The ADX also plans to list domestic ETFs, Healey said on Sunday, and is encouraging local financial firms to launch the products.

Last week, the exchange changed its name from the Abu Dhabi Securities Market as part of its rebranding initiative. That came just a few weeks after the ADX launched a series of roadshows in Singapore and Tokyo last month in a bid to attract foreign investment. It had similar roadshows in London and New York in June last year.

Healey said on Sunday the exchange plans to do another roadshow in London this year.
Foreign investments from outside the Middle East in the Abu Dhabi bourse reached 3.1 billion dirhams ($844 million) in 2006, the acting director-general Rashed al-Baloushi said last year.

The benchmark, the second-best performer in the Gulf Arab region last year, is up 11.04 percent this year.
/Reuters/

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Abu Dhabi market closes at highest level in two years

The Abu Dhabi Securities Market Index closed at its highest level in two years, adding 1.8 per cent to reach the 5,000 mark on Sunday.

Financials led the way as UAE shares gained after Goldman Sachs Group Inc. recommended investors to purchases shares of First Gulf Bank and United Arab Bank.

The Dubai Financial Market General Index also rose 2.3 per cent, bringing a four-day gain to 5.3 per cent.

A senior broker at Shaheen Financial Brokers told Bloomberg: “There is a return of foreign investors as shares in the UAE trade at attractive prices. Strong earnings and stock coverage are helping the positive sentiment.”

Abu Dhabi based lender, First Gulf Bank leaped from 5.3 per cent to Dh22.9, while Union National Bank saw a 5 per cent increase to Dh8.4, its highest close since January 16.

Goldman Sachs initiated coverage of both banks by giving both “buy” recommendations.

Sharjah Islamic Bank also climbed 3.4 per cent to Dh3.05, mounting for a third day. The UAE's third-biggest Shariah-compliant lender by market value said first-quarter net income rose 55 per cent to Dh79.4 million on loans, fees and income from its units.

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The Abu Dhabi Securities Market (ADSM) development plans

The Abu Dhabi Securities Market (ADSM) will discuss its development plans, including exchange traded funds and foreign listings, with representatives of some of Asia?s leading stock exchanges during a roadshow that begins this week in Singapore and Tokyo.

ADSM is looking to raise international awareness of the exchange, both to increase foreign investment in ADSM-listed companies and to further develop the exchange?s own product offerings.

ADSM Director General Tom Healy, who is leading the delegation to Singapore and Tokyo, said foreign listings on the ADSM would be a great way to further diversify the exchange?s offerings.

"The ADSM is planning to initiate ETFs trading, and we believe that foreign ETFs, and particularly ETFs in sectors such as electronics that are not represented in the UAE, would be of tremendous interest," Healy said.

Accompanied by senior representatives of eight leading ADSM-listed companies, Healy also will provide his counterparts at the Singapore and Tokyo stock exchanges with an update on a range of ADSM activities and projects.

This week's Asia roadshow follows the June 2007 events in London and New York, which Healy said "were very successful".

The eight participating companies are National Bank of Abu Dhabi, Abu Dhabi Commercial Bank, Aldar Properties, Sorouh Real Estate, Waha Capital, Dana Gas, Fujairah Cement Industries and Agthia.

"These leading blue-chip companies will not only serve as excellent examples of the strong, successful and well-managed firms listed on the exchange, but they will also help present to investors and financial institutions in Singapore and Tokyo the many benefits of investing in the UAE,' said Healy. WAM

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First exchange-traded funds in the ADSM as early as June

Polaris Group, owner of Taiwan's largest online securities brokerage, plans to issue the first exchange-traded funds in the Abu Dhabi Securities Market as early as June, the Taiwan Stock Exchange said.

The Abu Dhabi market will revise its rules in June to allow ETFs, Wu Rong-I, chairman of the Taiwan Stock Exchange Corp., said in a briefing. He met in Taipei yesterday with Abu Dhabi Securities Chief Executive Tom Healy and executives of several Taiwanese brokerages.

The two exchanges said on Dec. 13 they signed an agreement to share experience and encourage cross-listings. Taiwan also expects similar tie-ups with other Middle East exchanges such as the Dubai International Financial Exchange Ltd., Wu said at the time.

"Abu Dhabi executives are seeking cooperation opportunities with Taipei, in addition to Japan and Singapore in the Asian region," said Wu, adding that one Abu Dhabi brokerage that he didn't identify will soon visit Taipei to seek a partner in which to invest.

Polaris will start by offering one or two ETFs backed by shares of high-technology companies in Taiwan. The exchange- traded funds will include companies that are Shariah-compliant and will exclude financial institutions, tobacco, gaming and others that don't comply with Islamic principles.

ETFs are becoming more popular with investors because they are cheaper and easier to trade than similar mutual funds. They are index-based products that allow an investor to buy or sell shares of portfolios of stock in a single security. Source

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Abu Dhabi Securities Market (ADSM) has signed a deal with NYSE Euronext

The Abu Dhabi Securities Market (ADSM) has signed a deal with NYSE Euronext, the world's largest operator of stock exchanges, to develop the first derivatives trading platform in the region.

The move will also see the ADSM drop technology supplied by the Nasdaq OMX Group, which is closely linked to local rival, Borse Dubai.

ADSM also is seeking to develop further links with the NYSE Euronext, which owns the New York Stock Exchange and the Paris-based Euronext exchange. It is also working with the Tokyo Stock Exchange to develop its trading platform.

The two partners will also explore opportunities for cross listings under the agreement, with ADSM acting as the exclusive partners in the Gulf region. (MEED)

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Abu Dhabi Aviation Rises to 2-Year High on Management

Abu Dhabi Aviation Co. PJSC, a United Arab Emirates-based operator of helicopters and airplanes, surged to the highest in 23 months after the company announced changes to its board of directors last week.

Abu Dhabi Aviation rose 38 fils, or 8.2 percent, to 5.02 dirhams on the Abu Dhabi Securities Market today, its highest since March 27, 2006. The shares have added 41 percent in five trading days.
``Investors believe the company has great potential and the board changes will help improve performance,'' said Motasem Mustafa, head of share trading at the National Bank of Abu Dhabi PJSC, in a phone interview from Abu Dhabi today.

Abu Dhabi Aviation announced Feb. 19 it had appointed Sheikh Tahnoon bin Zayed Al Nahyan as its new chairman and named former chairman Sheikh Hamdan bin Mubarak Al Nahyan as vice chairman and managing director.

``I think it's just speculation because there is no news to justify the recent jump,'' said Mahmoud Al-Borgi, head of investor relations at Abu Dhabi Aviation, in a phone interview.

The company, established in 1976 by the Abu Dhabi government, operates 46 helicopters and three airplanes and mainly supports the emirate's offshore oil, engineering and construction companies. Net income in 2007 jumped 50 percent to 75.7 million dirhams ($20.6 million) as revenue advanced 11 percent to 534.4 million dirhams. (Bloomberg)

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ADSM signs MoU with Karachi Stock Exchange

Abu Dhabi Securities Market (ADSM) and Karachi Stock Exchange (KSE) signed today a Memorandum of Understanding (MoU) on Sunday to facilitate procedures of cross-listing of companies on ADSM and KSE.
The MOU will also open channels of cooperation between both exchanges, and the exchange of expertise concerning rules and regulations applied, investor awareness programs, as well as the latest techniques and developments in the financial markets.

The MoU was signed by Adnan Afridi, Managing Director of KSE, and Tom Healy, Director General of ADSM.

Tom Healy said: 'This MOU represents a significant step in bringing our capital markets closer together, to our mutual benefits. We look forward to working with KSE from now on in developing mutual business.' Adnan Afridi, Managing Director of KSE, welcomed the commitment of ADSM and KSE to cooperate and share expertise. He added that this MOU will strengthen the coordination between both markets which in turn will help and facilitate the process of enhancing surveillance and investors' protection as well as the development of financial markets according to the best international practices that will lead to a professional markets.

The Pakistan Business Council arranged the MOU between the KSE and ADSM playing the vital role in bringing the two organizations together with the object to develop the capital market. (WAM)

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Foreign investment up to AED 9.9 billion at ADSM during last year

Abu Dhabi Securities Market (ADSM) witnessed a tangible increase in institutional investment, particularly foreign participation, whose net investment amounted to AED (9.9) billion in 2007 compared to AED one billion in 2006, showed an overview of the market activities released by ADSM.

An analytical report also showed that the value of trading increased by 148.4pc from AED (70,6) billion in 2006 to AED (175,3) billion in 2007.The daily average value of trading increased by 177.8pc from AED (250.4) million to AED (695.8) million a day. The number of traded shares increased 361pc from (11.3) billion shares to (52.1) billion shares. The daily average traded shares also rose more than 415pc from (40.1) million shares to (206.6) million traded shares per day. The Index increased by 51.7% during 2007 In 2007 ADSM had four new listings: Arkan building Materials, Fujairah Building Industries, Fujairah National Insurance Company and Fujairah Trade Center which raised the number of listed companies from (60) to (64). Also, the number of ADSM registered brokerage firms increased from (84) to (96). In order to support this growth, ADSM expanded and improved the technology infrastructure, enhanced the link with the branches to improve efficiency and speed of communication, and improved its surveillance capabilities. ADSM introduced a new website that facilitates access to details and comprehensive information for investors, brokers and listed companies.

During 2007, ADSM held a series of road-shows in London and New York aimed at introducing listed companies to a number of the largest asset management funds, financial analysts, investment funds and institutions in the UK and US to support investor relation activities enhance transparency and promote the ADSM market.

To strengthen international exposure, ADSM signed a number of memorandums of understanding (MoUs) with Bahrain Securities Market, Singapore Exchange Limited (SGX), Hong Kong Exchanges and Clearing Limited (HKEx) and with Taiwan Stock Exchange aimed at enhancing and strengthening cooperation between ADSM and these exchanges, to facilitate cross-listings, and increase institutional participation Furthermore, ADSM signed an MoU with Damascus Securities Market, through which ADSM will assist in setting up the exchange in Damascus. (WAM)

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