Institutional investors are optimistic about the UAE stock market, as evidenced by their net purchases of almost AED 8 billion in local stocks during the first nine months of 2023.
This trend is driven by a number of factors, including the availability of increased investment opportunities, the strong growth trajectory of the domestic economy, and the attractiveness of publicly traded domestic companies.
Total purchases of local shares by institutional investors amounted to AED 232.15 billion, while total sales were AED 224.2 billion, according to data from the Abu Dhabi Stock Exchange (ADX) and Dubai Financial Market ( DFM).
The significant increase in institutional investments in local stocks is a reflection of growing confidence in the UAE markets and their future growth prospects. This confidence is driven by the strength of the UAE’s economic fundamentals, the strong performance of companies operating in the country and the attractive investment opportunities offered by the markets.
Institutional investment accounted for around 78 per cent of the total trading (buying and selling) in both markets since the beginning of this year, while individual investments accounted for a share of around 22 per cent.
Institutional investors have bought more Abu Dhabi shares than they have sold since the beginning of the year, resulting in a net investment of AED 6.45 billion, after recording purchases worth AED 195.64 billion against sales of approximately AED 189.18 billion.
ADX recorded the highest net purchase value in February at AED 2.3 billion, followed by AED 100.3 million in January, AED 1.02 billion in March, AED 587.1 million in April, AED 566.7 million in May, AED 680 million in June, AED 759.8 million in July, AED 187.04 million in August and AED 326.8 million in September.
At the DFM, institutional investment achieved net purchases worth AED 1.48 billion since the beginning of this year, following purchases worth AED 36.5 billion against sales of approximately AED 35.02 billion.
Local financial markets expect more institutional investments due to their rich investment opportunities and attractive price levels. The markets are also cooperating with listed companies and global investment banks to organize global investor conferences to showcase listed companies’ business developments and their growth strategies to global investment institutions. This will help keep markets active with institutional and foreign investment.
News source: Emirates News Agency