Foreign investors net buyers on DFM during June contrary to UAE nationals

July 1, 2014 3:19 pm

Dubai Financial Market (DFM) statistics revealed a constant interest from foreign investors, whether retail or institutions, during June 2014, despite of the volatility of market activity, which reflects their confidence and the diversification and attractiveness of DFM opportunities.

Market activity during the month of June indicates that investment decisions of foreign investors are derived from the sound fundamentals of the national economy as well as the strong and sustainable performance of DFM-listed companies and that these decisions are based on analyzing the economic fundamentals rather than any rumors or regional developments.

The value of stocks bought by foreign investors during this month reached Dhs17.2 billion comprising 48.3% of the total traded value. The value of stocks sold by foreign investors during the same period reached Dhs15.1 billion comprising 42.4% of the total value traded. Accordingly, DFM net foreign investment in-flow reached Dhs2.1 billion.

Arabs, others and GCC nationals were net buyers on DFM during June, while UAE national were net sellers of Dhs2.1 billion. Net buying reached to Dhs1.2 billion for Arabs, Dhs780.5 million for others and Dhs138 million for GCC nationals.

The Dubai Financial Market General Index down 22.5% to 3942.8 points at the end of June compared to 5087.5 points at the end of May. DFM General Index is up 17% year to end of June.

The market capitalization decreased at the end of this month by 19.8% to reach Dhs292.7 billion compared to Dhs364.9 billion at the end of May. The value of shares traded reached during this month Dhs35.6 billion, compared to Dhs46.5 billion recorded during May, down 23.4%. The number of shares traded decreased by 1.7% to reach 12.4 billion shares during this month compared to 12.6 billion shares were traded during May. The number of transactions executed during June decreased by 7.6% to reach 234.4 thousands compared to 253.7 thousand deals carried out during the previous month.

As for the sectors’ contribution to trading volumes, the Real Estate and Construction sector ranked first in terms of the traded value, to reach Dhs26.5 billion, or 74.3% of the total traded value in the market. The Financial & Investment services sector ranked second at Dhs4.4 billion or 12.4%, followed by Banking sector with Dhs3.2 billion or 8.9%, the Transportation sector with Dhs1.1 billion or 3%, the Services sector with Dhs229.2 million or 0.6%, the Telecommunication sector with Dhs171.7 million or 0.5%, the Insurance sector with Dhs101.5 million or 0.3%.