The Abu Dhabi Securities Exchange (ADX) announced on Wednesday that it will follow a new trading schedule next year in view of the UAE’s decision to shift to a Saturday-Sunday weekend.
Effective January 3, 2022, the local bourse will operate from Monday to Friday, with the trading hours still between 10 am and 3pm, ADX said in a statement.
“[ADX] is amending its trading week to Monday through Friday, effective 3 January 2022. Trading hours will remain unchanged, opening at 10:00am and closing at 3:00pm,” the statement said.
“The exchange’s new trading week follows the recent announcement made by the UAE government to adopt a four-and-a-half day working week.”
The UAE announced on Tuesday that it will transition to a new working week next year, with Friday afternoon, Saturday and Sunday forming the new weekend.
The move is expected to boost the local economy by stimulating more capital flows and promoting employee productivity and wellbeing.
The UAE’s local stock markets could see volumes rise once trading schedules become more aligned with those of the global markets. Stock markets around the world, from Europe to Asia and the Americas, trade from Monday to Friday.
Bal Krishen, Chairman and CEO of Century Financial, said that since the UAE’s trading week starts on Sunday, which is a holiday for international markets, global interest in the local markets has been low.
“On Friday, the last trading day of the week, the UAE [markets are] not functional, and this tends to be one of the most volatile as it is the final trading day of the week. This deprives the UAE of international attention and, as a result, liquidity,” Krishen told Zawya.
“Therefore, having a synchronized trading schedule will boost the depth and performance of local markets.”
(Reporting by Cleofe Maceda; editing by Seban Scaria)
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