Dubai Financial Market Performance – August 2014

The Dubai Financial Market General Index rose 4.8% to 5062.9 points at the end of August compared to 4833.2 points at the end of July. The Real Estate and Construction index up 10.7% and the Industrial index up 9.9%, and the Financial & Investment services index up 4.8%. In contrast, the Transportation index down 2.9%, the Services index down 1.1% and the Banking index decreased by 0.5%.

The market capitalization increased at the end of this month by 3% to reach AED 357.3 billion compared to AED 346.7 billion at the end of July. The value of shares traded reached during this month AED 17.3 billion, compared to AED 35.7 billion recorded during July, down 51.5%. The number of shares traded decreased by 57.7% to reach 7.1 billion shares during this month compared to 16.7 billion shares traded during July. The number of transactions executed during August decreased by 51.9% to reach 121.6 thousands compared to 252.6 thousand deals carried out during the previous month.

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 12.3 billion, or 71.2% of the total traded value in the market. Banking sector ranked second at AED 2.7 billion or 15.8%, followed by The Financial & Investment services sector with AED 1.7 billion or 9.7%, the Transportation sector with AED 326.1 million or 1.9%, the Insurance sector with AED 119.5 million or 0.7%, the Telecommunication sector with AED 89 million or 0.5%, the Services sector with AED 45 million or 0.3%.

The value of stocks bought by foreign investors during this month reached AED 7.393 billion comprising 42.7% of the total traded value. The value of stocks sold by foreign investors during the same period reached AED 7.352 billion comprising 42.4% of the total value traded. Accordingly, DFM net foreign investment in-flow reached AED 41.1 million.

On the other hand, the value of stocks bought by institutional investors during this month reached AED 3.866 billion comprising 22.3% of the total traded value. The value of stocks sold by institutional investors during the same period reached AED 3.842 billion which constitutes 22.2% of the total value traded. DFM net institutional investment In-flow amounted AED 23.4 million.