DFM Performance – Q1, 2014

The Dubai Financial Market General Index increased by 32.1% to 4451  points at the end of this  quarter compared to 3369.8  points at the end of fourth  quarter 2013. At the sectoral level, indexes of four out of the nine sectors represented on DFM ended the quarter in the green, with the Real Estate and Construction sector increasing the most by 52.9%, followed by the Financial and Investment Services and the Banking sectors by 48.7%, and 22.4% respectively. The Services, Telecommunication and the Transportation indices down 9.2%, 8.6% and 2.4% respectively.

The market capitalization increased at the end of this quarter by 25.8% amounting to AED 326.7 billion compared to AED 259.7 billion at the end of previous quarter. The value of shares traded during this quarter reached AED 110.2  billion, compared to AED 52  billion recorded during fourth quarter, up 111.8%. The number of shares traded increased by 43.4% to reach 58.4 billion shares during this quarter compared to 40.7 billion shares were traded during fourth quarter. The number of transactions executed during this  quarter up 66.4% to reach 659.7 thousands compared to 396.4 thousand deals carried out during the previous quarter.

As for the sectors’ contribution to trading volumes, the Real Estate and Construction sector ranked first in terms of the traded value, to reach AED 55 billion, or 49.9% of the total traded value in the market. The Banking sector ranked Second at AED 25.1 billion or 22.8%, followed by the Financial and Investment Services sector with AED 18.5 billion or 16.7%, the Transportation sector with AED 5.5 billion or 5%, the Insurance sector with AED 2.9 billion or 2.6%, the Services sector with AED 1.7 billion or 1.6%, and the Telecommunication sector with AED 1.5 billion or 1.4%, whilst other sectors shared the rest of trading volumes.

The value of stocks bought by foreign investors during this quarter reached AED 44.7 billion comprising 40.5% of the total traded value. The value of stocks sold by foreign investors during the same period reached AED 45.5 billion comprising 41.3% of the total value traded. Accordingly, DFM net foreign investment out-flow reached AED 809.8 million.

On the other hand, The value of stocks bought by institutional investors during this quarter reached AED 28.9 billion comprising 26.2% of the total traded value. The value of stocks sold by institutional investors during the same period reached AED 29.7  billion which constitutes 27% of the total value traded. Net institutional investment out-flow from DFM amounted to AED 835.5 million.