Dubai Financial Market (DFM) Performance – Q3, 2013

The Dubai Financial Market General Index increased by 24.3% to 2762.5 points at the end of this quarter compared to 2222.6 points at the end of second quarter. At the sectoral level, indexes of seven out of the nine sectors represented on DFM ended the quarter in the green, with the Services sector increasing the most by 34.8%, followed by the Financial and Investment Services and the Real Estate and Construction sectors by 34.6%, and 27% respectively. The Industrial sector index has not changed during this quarter, while the Consumer Staples index decreased by 9.9%.

The market capitalization increased at the end of this quarter by 16.7% amounting to AED 249.1 billion compared to AED 213.4 billion at the end of previous quarter. The value of shares traded during this quarter reached AED 49 billion, compared to AED 38 billion recorded during second quarter, up by 29%. The number of shares traded increased by 45.6% to reach 41.5 billion shares during this quarter compared to 28.5 billion shares were traded during second quarter. The number of transactions executed during this  quarter up by 20.4% to reach 395.9 thousands compared to 328.7 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 23.912 billion, or 48.8% of the total traded value in the market. The Financial and Investment Services sector ranked Second at AED 7.866 billion or 16%, followed by the Banking sector with AED 7.421 billion or 15.1%, the Transportation sector with AED 4.731 billion or 9.7%, the Services sector with AED 3.437 billion or 7%, the Telecommunication sector with AED 991.8 million or 2%, and the Insurance sector with AED 660.6 million or 1.3%, whilst other sectors shared the rest of trading volumes.

The value of stocks bought by foreign investors during this quarter reached AED 19.713 billion comprising 40.2% of the total traded value. The value of stocks sold by foreign investors during the same period reached AED 19.681 billion comprising 40.1% of the total value traded. Accordingly, DFM net foreign investment in-flow reached AED 31.5 million.

On the other hand, The value of stocks bought by institutional investors during this quarter reached AED 10.621 billion comprising 21.7% of the total traded value. The value of stocks sold by institutional investors during the same period reached AED 10.807  billion which constitutes 22% of the total value traded. Net institutional investment out-flow from DFM amounted to AED 186.4 million.