Dubai Financial Market reports its performance for August 2012

At the sectoral level, indexes of four out of the nine sectors represented on DFM ended the month in the green, with the Telecommunication sector increasing the most by 5.6%, followed by the Transportation and Banks sectors by 2.3%, and 1.5% respectively.

The Consumer Staples sector's index has not changed during this month, while the Services, Real Estate and Contraction and Insurance Indices decreased by 3.2%, 2.0%, and 0.7% respectively.

The market capitalization increased at the end of this month by 0.3% amounting to Dhs179.5bn compared to Dhs179bn at the end of previous month. The value of stocks traded during this month reached Dhs2.2bn, compared to Dhs2.8bn recorded during July, a decrease by 21.3%. The number of stocks traded decreased by 9.8% to reach 1.9 billion stocks during this month compared to 2.2 billion stocks were traded during July. The number of transactions executed during August down by 15.3% to reach 31.3 thousands compared to 36.9 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 Dhs1.288bn, or 57.6% of the total traded value in the market. The Banking sector ranked second at Dhs367.8m or 16.5%, followed by the Telecommunication sector with Dhs197.7m or 8.8%, the Transportation sector with Dhs101.6m or 4.5%, the Financial and Investment Services sector with Dhs96.8m or 4.3%, the Services sector with Dhs91.9m or 4.1%, and the Insurance sector with Dhs91.1m or 4.1%.

The value of stocks bought by foreign investors during this month reached Dhs1.134bn comprising 50.7% of the total traded value. The value of stocks sold by foreign investors during the same period reached Dhs1.098bn comprising 49.1% of the total value traded. Accordingly, DFM net foreign investment in-flow reached Dhs35.7m.

On the other hand, The value of stocks bought by institutional investors during this month reached Dhs558m comprising 25% of the total traded value. The value of stocks sold by institutional investors during the same period reached Dhs649.6 m which constitutes 29.1% of the total value traded. Net institutional investment out-flow into DFM amounted to Dhs91.6m.