By: Mahmoud Gamal
Dubai – Mubasher: The UAE’s strong economy and the continued announcement of Expo 2020-related projects alongside stability in oil prices and new foreign investments will likely bolster UAE bourses in 2018, analysts told Mubasher.
Foreigners were mostly sellers in 2017, particularly in the second half of the year, which reflects the overstated and unjustified investor concerns regarding the geopolitical events that took place during the period despite the good opportunities seen in several UAE stocks.
Foreign investors bought AED 71.24 billion in stocks on the Abu Dhabi Securities Exchange (ADX) and Dubai Financial Market (DFM) combined, against sales of AED 71.42 billion, netting AED 180.50 million in sales, data compiled by Mubasher showed.
Foreign buying accounted for 44% of the total value of the deals executed in 2017 in the two markets, which amounted to AED 162.37 billion.
DFM
On the DFM, foreign investors purchased AED 48.94 billion in stocks versus AED 50.87 billion sales in 2017, registering net sales of AED 1.92 billion.
Foreign trading saw significant fluctuation in 2017, as many of them bought stocks in the first half of the year; however, towards the end of Q3-17, many had begun exiting DFM-listed stocks on the back of geopolitical tensions, Mindcraft Consultants CEO Fadi El-Ghattis told Mubasher.
ADX
On the ADX, foreign purchases amounted to AED 22.28 billion, whereas sales stood at AED 20.54 billion, resulting in net buying of AED 1.74 billion.
Commenting on foreign activity on the ADX, Menacorp financial analyst Issam Kassabieh said that foreign activity was particularly seen after the listing of ADNOC Distribution.
The analyst forecast that foreigners will continue to be on the lookout for certain events in the first months of 2018, particularly the impact the value-added tax (VAT) will have on the bourse and companies.
The UAE began implementing the VAT on 1 January 2018 as a means to diversify government revenues.
Retail, institutional investors
UAE citizens bought AED 91.71 billion in stocks in 2017 versus sales of AED 91.53 billion, resulting in net purchases of AED 180.5 million.
Retail investors, however, were mostly sellers, netting AED 2.82 billion after buying AED 95.66 billion in stocks and selling for AED 95.66 billion.
Meanwhile, institutional investors bought AED 65.31 billion versus AED 62.49 billion in sales, resulting in AED 2.82 billion in net buying.
Translated by: Nada Adel Sobhi
