Dubai – Mubasher: Foreign investors in the Dubai Financial Market (DFM) tended to sell shares in the first quarter of 2018, reflecting investors’ indifference regarding the market opportunities, as real estate sector faces mounting challenges.
Foreigners sold AED 9.72 billion worth of shares during Q1-18, while they bought AED 9.17 billion in the same quarter, Mubasher’s data showed.
GCC investors’ total share sales hit AED 2.23 billion, with total purchases of AED 1.96 billion.
Meanwhile, non-Arabs sold AED 4.77 billion worth of shares in the first three months of 2018.
The dominance of selling transactions in the DFM during the first quarter is an indicator of investors’ reluctance to invest in shares, especially blue chips, MindCraft Consultants’ CEO Fadi Al Ghattis said.
Also, companies which saw restructure measures, such as Arabtec Holding and Drake and Scull International (DSI), have fallen short of investors’ expectations, Al Ghattis added.
GCC and non-Arab investors’ appetite for selling transactions can be attributed to the geopolitical tension, the analyst revealed.
Nationals tended to buy in the three-month period ended 31 March, with total purchases of AED 11.26 billion.
