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Foreign, institutional investors buy AED 3.4bn shares in UAE

Net investments were distributed as AED1.388bn for foreign investments and AED1.016bn for institutional investments.

The net value of shares bought by foreign and institutional investors jumped to AED 3.4 billion during the first four months of this year, reports UAE-based Al Bayan.

This accounts for almost 40.6 per cent of the net investments of the registered foreign and institutional investors over the past year, amounting to AED8.4bn.

Al Bayan’s economic analysis shows that net foreign and institutional investments in the Abu Dhabi Securities Exchange reached AED2.4bn, from the beginning of this year until the end of April.

Net investments were distributed as AED1.388bn for foreign investments and AED1.016bn for institutional investments.

In the Dubai Financial Market, the net foreign and institutional investments reached more than AED1bn, distributed as AED343 million for foreign investments and AED667mn for institutional investments.

Brokers say that 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 point out that some stock prices increased by over 70 per cent during April and that they expect markets to continue the upturn trend in the coming period.

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

The value of shares bought by foreign investors during the third week of April reached AED113mn, while the value of shares bought by institutional investors during the same week reached AED201mn.

The value of shares bought by foreign investors stood at AED 3,450.81mn, accounting for 43.91 per cent of the total purchases, while the value of stocks they sold stood at AED 3,337.70mn.

The second week of April was the most active for this segment of the investors, as foreign investments reached AED131.8mn as a result of purchases worth AED2.363mn, accounting for 44.50 per cent of the total value of purchases, while their sales amounted to AED2,232.17mn, accounting for 42.02 per cent of the total sales value.