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Foreign, institutional investors buy AED 1.1bn shares in Dubai

Strong return of institutional investors contributed to the market revival, prompting many stock prices to achieve significant growth rates.

The net value of shares bought by foreign, or non-UAE, nationals and institutional investors jumped to AED 1.1 billion in the past seven weeks, reports UAE-based Al Bayan.

This move is attributed to the return of liquidity from this segment of investors to the trading floor after the exit witnessed in the previous period.

According to Al Bayan’s economic analysis, from March to the end of trading last week, net investments were distributed as AED724 million for institutional investments and AED382 million for foreign investments, which was described as the largest flow of this type of investments since the beginning of this year.

Brokers say the strong return of institutional investors contributed to the market revival, prompting many stock prices to achieve significant growth rates, offsetting the losses suffered by them in the first two months of this year.

They expect the flow of foreign and institutional investments to continue during the coming period, especially by institutional investors, whose return played a significant role in supporting the market after their absence from the trading floor for a long period.

Looking at the investments flow since last March, it is clear that last week was the most active for this segment of the investors, as foreign investments reached AED113 million, while institutional investments reached AED201 million.

The value of shares bought by foreign investors during the last week reached AED3450.81 million, accounting for 43.91 per cent of the total value of purchases, while the value of stocks they sold stood at AED3337.70 million, accounting for 42.47 per cent of the total sales.

The value of shares bought by institutional investors during the same week reached AED1602.87 million, accounting for 20.40 per cent of the total trading value, while the value of stocks they sold stood at AED1401.01 million, accounting for 17.83 per cent of the total trading value.

In the second week of April, net foreign investments amounted to AED131.8 million as a result of purchases worth AED2363 million, accounting for 44.50 per cent of the total value of purchases, while their sales amounted to AED2232.17 million, accounting for 42.02 per cent of the total sales value.

The net institutional investments in the same week stood at AED258.2 million as a result of purchases worth AED1447.03 million, accounting for 27.24 per cent of the total trading value, while the sales value amounted to AED1188.82 million, accounting for 22.38 per cent of the total trading value.