UAE Institutional Investors Drive Surge in Domestic Stock Acquisitions in 2023
[ad_1]
Institutional investors have notably boosted their acquisition of domestic stocks in 2023, attracted by the diverse investment prospects and the opportunity to participate in the strong expansion of the country’s economy.
In addition, prominent global and regional institutions consider local listed companies to be very attractive for their investment strategies.
Data from the Abu Dhabi and Dubai markets reveal that institutional investors achieved a net purchase of almost AED 7 billion (US$1.9 billion) in local stocks from January to December 2023. This figure reflects a total purchase of AED 302.7 billion compared to total sales of approximately AED 295.8 billion.
The substantial increase in institutional investment in local equities underlines the strong confidence in the UAE markets, their promising future growth prospects and the attractive investment opportunities they offer due to the country’s strong economic fundamentals and the impressive performance of its companies. operational. This increase in institutional interest coincides with the markets’ continued efforts to attract more foreign and institutional investments, with the aim of diversifying liquidity among local, foreign, institutional and individual investors.
Institutional investors dominated the UAE stock market in 2023, capturing almost 78 percent of the total trading activity. This significant acceptance by institutional players demonstrates their increased confidence in the UAE’s economic prospects, driven by the diversification of investment opportunities and the compelling performance of domestic listed companies.
In it Abu Dhabi Stock Exchange (ADX), institutional investors have achieved net investment of over AED 6.1 billion so far this year. This strong appetite was driven by cumulative purchases of AED 253.9 billion, marginally outpacing sales of AED 247.8 billion.
The highest net purchase value on the ADX was recorded in February, reaching approximately AED 2.3 billion, followed by AED 100.3 million in January, AED 1.02 billion in March, AED 587.1 million in April, 566 .7 million AED in May, 680 million AED in June. , AED 759.8 million in July, AED 187.04 million in August, AED 293.3 million in September, AED 132.4 million in October and AED 254.9 million in November.
In it dubai financial market, Institutional investment reached a net purchase value of AED 808.1 million.
Local financial markets expect greater institutional investments in the coming months. This is due to the numerous investment opportunities available in shares of financially stable companies, which are trading at attractive price levels for both local and foreign portfolios.
The country’s financial markets are collaborating with listed companies and international investment banks to host global investor conferences. The goal is to strengthen connections, review business developments and discuss growth strategies with global investment institutions. This effort ensures open communication channels, sustaining a strong presence of institutional and foreign investments in the markets.
News source: Emirates News Agency
[ad_2]
