Dubai Financial Market Performance – Q2, 2013

The Dubai Financial Market General Index increased by 21.5% to 2222.6  points at the end of this  quarter compared to 1829.2  points at the end of first quarter. At the sectoral level, indexes of seven out of the nine sectors represented on DFM ended the quarter in the green, with the Financial and Investment Services sector increasing the most by 49.8%, followed by the Banking and the Telecommunication sectors by 31.2%, and 23.9% respectively. The Consumer Staples sector index has not changed during this quarter, while the Insurance index decreased by 4.3%.  

The market capitalization increased at the end of this quarter by 4.5% amounting to AED 213.4 billion compared to AED 204.2 billion at the end of previous quarter. The value of shares traded during this quarter reached AED 38 billion, compared to AED 20.8 billion recorded during first quarter, up by 82.4%. The number of shares traded increased by 74.4% to reach 28.5 billion shares during this quarter compared to 16.4 billion shares were traded during first quarter. The number of transactions executed during this  quarter up by 51.6% to reach 328.7 thousands compared to 216.8 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 13.830 billion, or 36.4% of the total traded value in the market. The Banking sector ranked Second at AED 9.184 billion or 24.2%, followed by the Financial and Investment Services sector with AED 8.242 billion or 21.7%, the Services sector with AED 2.252 billion or 5.9%, the Transportation sector with AED 2.221 billion or 5.8%, the Telecommunication sector with AED 1.473 billion or 3.9%, and the Insurance sector with AED 777.1 million or 2%, whilst other sectors shared the rest of trading volumes.

The value of stocks bought by foreign investors during this quarter reached AED 16.503 billion comprising 43.4% of the total traded value. The value of stocks sold by foreign investors during the same period reached AED 16.252 billion comprising 42.8% of the total value traded. Accordingly, DFM net foreign investment in-flow reached AED 251 million. 

On the other hand, The value of stocks bought by institutional investors during this quarter reached AED 9.207 billion comprising 24.2% of the total traded value. The value of stocks sold by institutional investors during the same period reached AED 8.941  billion which constitutes 23.5% of the total value traded. Net institutional investment in-flow into DFM amounted to AED 265.9  million.