By: Mahmoud Gamal
Dubai – Mubasher: Foreign trading in the UAE’s two stock markets mainly centred on selling in September, indicating that foreigners were interested in profit-taking until new positive incentives emerged in terms of financial results or new listings.
The total value of purchases by foreign investors in the Abu Dhabi Securities Exchange (ADX) and the Dubai Financial Market (DFM) amounted to AED 3.33 billion ($91 million) last month versus AED 3.46 billion ($94 million) in sales, resulting in net sales of AED 132.6 million ($360,110), according to data compiled by Mubasher.
Foreign buying represented 45% of total trades executed on the UAE’s two bourses in September, which amounted to AED 7.4 billion.
The decline in foreign investments in UAE markets confirms the state of anticipation that has been dominant throughout September amid a continued lack of catalysts, analysts told Mubasher.
Foreign investors purchased AED 1.796 billion worth of stocks on the DFM, whereas their sales amounted to AED 1.790 billion, resulting in net buying of around AED 6.06 million.
Menacorp financial analyst Issam Kassabieh commented that foreigners’ buying liquidity on the DFM in September was not as strong as previous months, noting however, that investors still purchased stocks despite the absence of incentives, which indicates their interest in the UAE’s blue chips particularly Emaar Properties.
On the ADX, foreign purchases amounted to AED 1.53 billion in September, whereas sales reached AED 1.67 billion, resulting in net selling of AED 138.6 million.
Meanwhile, UAE investors were buyers on both markets, netting around AED 19.68 million, after purchases totalled AED 2.17 billion against AED 2.15 billion in sales.
Kassabieh forecast that foreign investment will resume in October in a variety of sectors, particularly banks, real estate, and transport, whose stocks have fallen to attractive price levels.
This comes amid positive projections and guidance for third quarter financial results, the analyst told Mubasher.
Translated by: Nada Adel Sobhi
