Dubai Financial Market 2016 performance
The Dubai Financial Market General Index increased by 12.1 per cent to 3531 points at the end of this year compared to 3151 points at the end of 2015.
At the sectorial level, eight out of the nine sectors represented on DFM ended the year in the green, with the services sector increasing the most by 36 per cent. The consumer staples and discretionary sector followed at 22.1 per cent, and the telecommunication sector increased by 21.6 per cent. In contrast the industrial sector decreased by 16.7 per cent.
The market capitalisation increased by 12.3 per cent at the end of this year, amounting to AED 337.6 billion compared to AED 300.7 billion at the end of previous year, while the value of shares traded during this year reached AED 133 billion. This down from to AED 145.7 billion recorded during 2015, a decrease of 8.7 per cent.
The number of shares traded increased by 14.2 per cent to reach 105.8 billion shares during this year compared to 92.7 billion shares traded during last year, while the number of transactions executed during this year was down 14.4 per cent to reach 1.3 million compared to 1.5 million deals carried out during the previous year.
As for the sectors’ contribution to trading volumes, the real estate and construction sector ranked first in terms of the traded value, reaching AED 57.2 billion, or 43 per cent of the total traded value in the market. The banking sector came in behind it at AED 35.3 billion or 26.5 per cent, followed by the financial and investment services sector with AED 13.3 billion or 10 per cent. The consumer and discretionary staples sector reached AED 8.7 billion or 6.5 per cent, the transportation sector was at AED 6.4 billion or 4.8 per cent. The services sector reached AED 5.8 billion or 4.3 per cent, the telecommunications sector AED 3.9 billion or 2.9 per cent, and the insurance sector AED 2.6 billion or 1.9 per cent, and finally the industrial sector managed AED 9.2 million.
The value of stocks bought by foreign investors during this year reached AED 60.8 billion, comprising 45.5 per cent of the total traded value. The value of stocks sold by foreign investors during the same period reached AED 60.4 billion comprising 45.2 per cent of the total value traded. Accordingly, DFM net foreign investment in-flow reached AED 360.5 million.
On the other hand, the value of stocks bought by institutional investors during this year reached AED 40.1 billion, comprising 30 per cent of the total traded value. The value of stocks sold by institutional investors during the same period reached AED 37.9 billion which constitutes 28.4 per cent of the total value traded. Net institutional investment in-flow amounted to AED 2.2 billion