Dubai Financial Market Performance – February 2016

The Dubai Financial Market General Index increased by 8.1% to 3240 points at the end of February compared to 2998 points at the end of January. At the sectorial level, indexes of seven sectors out of nine sectors represented on DFM ended the month in green with the Real Estate and Construction sector index increased the most by 16.1%, followed by the Transportation sector with 11.4%, the Financial & Investment services sector index by 11.3%, the Telecommunication sector index by 9.8%. The Banks sector index decreased by 1.3.

The market capitalization increased at the end of this month by 5.8% to reach AED 313.5 billion compared to AED 296.4 billion at the end of January. The value of shares traded increased by 27.2% reaching this month AED 11.8 billion, compared to AED 9.2 billion recorded during January. The number of shares traded increased by 24.6% to reach 9.9 billion shares during this month compared to 8 billion shares traded during January. The number of transactions executed during February increased by 8.8% to reach 131.9 thousands compared to 121.3 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 5.6 billion, or 47.7% of the total traded value in the market. Banking sector ranked second at AED 3.1 billion or 26.3%, followed by The Financial & Investment services sector with Approximately AED 1.4 billion or 11.6%. The Transportation sector with AED 585.8 million or 5%, the Services sector with AED 420.5 million or 3.6%, the Consumer and Discretionary sector with AED 266.3 million or 2.3%, the Telecommunication sector with AED 232.8 million or 2.0%, and the Insurance sector with AED 178 million or 1.5%, and the Industrial sector with AED 3.5 thousands.

The value of stocks bought by foreign investors during this month reached AED 5.69 billion comprising 48.4% of the total traded value. The value of stocks sold by foreign investors during the same period reached AED 5.45 billion comprising 46.4% of the total value traded. Accordingly, DFM net foreign investment in-flow reached AED 237.2 million. 

On the other hand, the value of stocks bought by institutional investors during this month reached AED 3.38 billion comprising 28.7% of the total traded value. The value of stocks sold by institutional investors during the same period reached AED 3.05 billion which constitutes 26% of the total value traded. DFM net institutional investment in-flow amounted AED 327 million.