UAE stocks attract Dh5.6 billion in net institutional investments since start of 2023

Abu Dhabi: From January to June this year, institutional investors bought more local stocks than they sold in the Abu Dhabi Securities Exchange (ADX) and the Dubai Financial Market (DFM).

Their net purchases totalled Dh5.6 billion after buying stocks worth Dh165.4 billion and selling Dh159.7 billion in stocks.

The substantial rise in institutional investments in local stocks confirms the confidence in the UAE’s markets and their future growth potential, attributed to the country’s strong economic fundamentals and the impressive performance of its listed companies.

Emirati markets are actively adopting strategies to attract more foreign and institutional investments while diversifying liquidity sources between domestic and foreign investors and institutional and individual participants.

Institutional investments accounted for some 78 per cent of the total trading volume, both buying and selling, in both markets since the start of the current year, while individual investments constituted around 22 per cent.

In detail, institutions invested more than Dh5 billion in the ADX, resulting from purchases totalling Dh143.4 billion compared to sales of around Dh138.4 billion.

In terms of monthly net purchases, institutions recorded the highest value in the ADX in February with around Dh2.3 billion, followed by approximately Dh100.07 million in January, Dh1.02 billion in March, Dh587.1 million in April, Dh566.7 million in May, and Dh416 million in June.

In the DFM, the net total of institutional investments was Dh613 million since the start of the current year, with purchases totalling Dh22 billion and sales at around Dh21.4 billion.