By: Mahmoud Gamal
Abu Dhabi-Mubasher: Net purchases of foreign traders and institutions rose 67% so far this year in Abu Dhabi Securities Exchange (ADX).
Net purchases reached AED 7.46 billion since the beginning of 2016, compared to AED 4.46 billion in the prior-year period.
Foreign trades stood at AED 18.44 billion during the same period, representing 51.1% of the market’s turnover valued at AED 36.08 billion.
Foreigners’ sales amounted to AED 15.36 billion, while their purchases reached AED 3.8 billion.
Increasing purchases of foreign traders, since the upgrade of the UAE by the global index compiler MSCI to Emerging Market (EM) status till now, shows that the local markets have attractive opportunities, according to Gulf markets analyst Waleed Khattab.
Despite the volatility of global economy and gulf markets, the UAE stocks reached low price-earnings ratios and attracted foreign liquidity as a result, Khattab added.
Foreign non-Arab investors netted AED 3.54 billion in purchases, compared to AED 9.47 billion worth of sales.
Net purchases of institutions rose 106.6% year-on-year to reach AED 2.12 billion up to date.
The rise of institutional investments, mostly pumped by operational companies, reflects the strong financial position of UAE listed firms.
Since the beginning of this year till Sunday, 18 September, the Abu Dhabi’s main index rose 4% to reach 4,492.19 points.
Translated by: Julian Nabil
