Institutional investors invest AED8 billion in UAE stocks since start of 2023

Institutional investors are optimistic about the UAE stock market, as evidenced by their net purchases of nearly AED 8 billion in local shares during the first nine months of 2023. This trend is driven by a number of factors, including the availability of broader investment opportunities, the strong growth trajectory of the national economy, and the attractiveness of listed national companies.

Total purchases of local shares by institutional investors amounted to AED 232.15 billion, while total sales were AED 224.2 billion, according to data from the Abu Dhabi Securities Exchange (ADX), and Dubai Financial Market (DFM)

The significant increase in institutional investments in local shares is a reflection of the growing confidence in the UAE markets and their future growth prospects. This confidence is driven by the strength of the UAE's economic fundamentals, the strong performance of the companies operating in the country, and the attractive investment opportunities that the markets offer.

Institutional investment accounted for about 78 percent of total trading (buying and selling) in both markets since the beginning of this year, while individual investments accounted for a share of about 22 percent.

Institutional investors have bought more Abu Dhabi stocks than they have sold since the beginning of the year, resulting in a net investment of AED 6.45 billion, after recording purchases worth AED 195.64 billion against sales of about AED 189.18 billion.

ADX saw the highest net purchase value in February at AED 2.3 billion, followed by AED 100.3 million in January, AED 1.02 billion in March, AED 587.1 million in April, AED 566.7 million in May, AED 680 million in June, AED 759.8 million in July, AED 187.04 million in August, and AED 326.8 million in September.

In the DFM, institutional investment achieved net purchases worth AED 1.48 billion since the beginning of this year after purchases worth AED 36.5 billion against sales of about AED 35.02 billion.

Local financial markets are expecting more institutional investments due to their rich investment opportunities and attractive price levels. The markets are also cooperating with listed companies and global investment banks to organise global investor conferences to showcase the developments of the listed companies' businesses and their growth strategies to global investment institutions. This will contribute to keeping the markets active with institutional and foreign investment.

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