DFM saw AED 2.04 billion in market gains, while ADX’s stocks logged AED 803.5 million….reports Asian Lite News
UAE stocks bolstered their gains on Wednesday, with their market capitalisation rising by over AED2.84 billion.
The market capitalisation of listed stocks grew from AED3.609 trillion yesterday to AED3.612 trillion by the close of today’s trading, divided into AED 2.932 trillion for stocks listed on the Abu Dhabi Securities Exchange (ADX) and AED 680.7 billion for stocks listed on the Dubai Financial Market (DFM).
DFM saw AED 2.04 billion in market gains, while ADX’s stocks logged AED 803.5 million.
Local stocks attracted about AED 1.52 billion in liquidity, split into AED 1.21 billion in Abu Dhabi’s market and AED 313.8 million in Dubai’s market. Trading involved approximately 762.3 million shares across over 19,700 deals.
The FTSE ADX Growth Market Index (FADGMI) closed higher by 0.1 percent, rising 9.2 points to settle at 9526.14 points. The FADX 15 index rose by about 0.1 percent, gaining around 9.5 points to close at 9301.94 points, while DFM’s General Index grew by 0.23 percent or the equivalent of 9.44 points, settling at 4038.32 points.
Meanwhile, institutional investors have notably boosted their acquisition of domestic stocks in 2023, enticed by the diverse investment prospects and the opportunity to engage in the strong expansion of the country’s economy. Furthermore, prominent global and regional institutions consider local listed companies highly attractive for their investment strategies.
Data from the Abu Dhabi and Dubai markets reveals that institutional investors achieved a net purchase of nearly AED 7 billion (US$1.9 billion) in local stocks from January to December 2023. This figure reflects a total purchase of AED 302.7 billion compared to total sales of approximately AED 295.8 billion.
The substantial rise in institutional investment in local equities underscores strong confidence in UAE markets, their promising future growth prospects, and the attractive investment opportunities they offer due to the country’s solid economic foundations and the impressive performance of its operating companies. This surge in institutional interest coincides with ongoing efforts by the markets to attract more foreign and institutional investments, aiming to diversify liquidity across local, foreign, institutional, and individual investors.
Institutional investors dominated the UAE equity market in 2023, capturing nearly 78 percent of total trading activity. This significant buy-in from institutional players demonstrates their heightened confidence in the UAE’s economic prospects, driven by the diversification of investment opportunities and compelling performance of listed national companies.
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