Value of shares traded on DFM fall 38% in September quarter

12/10/2014 18:49 AST

The value of shares traded during the September quarter on the Dubai Financial Market (DFM) fell 38.2 per cent to reach at Dh78.4 billion, though the exchange may stand to gain due to current market volatility.

Trading volumes in the real estate and construction sector was at Dh57.6billion, or 73.5 per cent of the total traded value in the market. The banking sector ranked second at Dh9.6billion or 12.2 per cent.

“Liquidity will remain a key indicator. High volatility would result in more volumes and the exchange would benefit,” said Sebastien Henin, head of asset management at The National Investor.

Stock exchanges in the UAE have been resorting to diversification to spruce up volumes. The market capitalisation of companies on the DFM jumped by more than a fifth on quarter to Dh357.6 billion in the quarter to September led by the real estate and construction sector.

Foreign money

Net foreign investment inflow during the quarter was Dh1.5 billion. The value of stocks bought by foreign investors during the quarter reached Dh35.2 billion comprising 44.9 per cent of the total traded value. The value of stocks sold by foreign investors during the same period reached Dh33.7 billion comprising 43 per cent of the total value traded.

On the other hand, the value of stocks bought by institutional investors during this quarter reached Dh18.7 billion comprising 23.8 per cent of the total traded value. The value of stocks sold by institutional investors during the same period reached Dh18.1 billion. The net institutional investment in-flow amounted to Dh585 million.

Gulf News